The biggest motivation to work hard and to save money in everyone’s life is to buy his/her own home. Buying a home is the biggest invest that comes with a financial commitment where you have to analyze your financial capacity and need to work on it. As per the current inflation in every sector, buying your own home with your saving is also a tough job and for that reason most of the people “Apply For Home Loan“ to fulfill their dream. Applying a loan can be easy process but your loan approval totally depends upon your age, income, job stability as well as loan repayment capability.

To reiterate, eligibility criteria play a crucial role as home loan is a big financial commitment which comes with longest repayment period ranging from 15 to 20 years. Thus, the home loan lenders become much stringent while approving the home loans. If you are planning for a home loan in near future then you are advised to take some preparatory steps. To get a home loan approval in first go, you need to do some home before applying for a loan. Here, we are listing few tips to get your home loan approval in first attempt:

√ Plan a budget for Homeownership: While purchasing a home, you do not have to bear the cost of house only but there are some additional expenses while getting a loan that includes registration fee, stamp duty, GST, and charges payable to municipality. Therefore, you need to consider all these expenses involved in home purchase while planning a budget.

√ Check your credit score: Credit score is that numeric expression provided by credit bureaus based upon their credit history reflecting their financial health. A score above 700 is considered to be good representing a high creditworthiness. In case you find your score low, you should take some considerable steps to improve it before going to lender as it will minimize the risk of loan rejection.

√ Get prepare for the down payment: No home loan covers the entire amount of the property to be purchased. You need to pay a certain part of it from your pocket or savings which is known as down payment. The maximum amount one can secure from a home loan is about 80-85% of the property price. Hence, the remaining percentage of the entire cost is covered under the down payment. Since the property price is a bigger deal so arranging small percentage can also become difficult for many of us. Thus, try to get prepared for it as it makes loan approval easier.

Purchasing your home of dreams not only indicates your financial reputation but also has some of the sentimental values such as sense of pride, stability and security. Therefore, before stepping ahead to “Apply For Home Loan Online“ or offline, you should start preparing to meet the eligibility criteria to own the home of your dreams. Thus, to get prepared and to make sure the smooth home loan approval, one should follow the above mentioned tips.

Generally, most of the potential loan seekers do not have much knowledge about loan against property, that’s why people prefer to secure personal loans when they need some kind of funding but if you have a huge requirement and want to secure desirable funds, it’s always good to “Apply For Loan against property“ which saves your money on the interest rate. The majority of people have lack of knowledge about LAP that how it can be taken, what is the interest rate on it, how they can apply for it and so on. Here, we will provide you a brief idea about some of the factors related to it.

Loan against property is a type of secured loan where borrower can secure a loan y keeping their property either residential or commercial as collateral. However, by doing so, one risks the ownership on property which is given as security but if borrower repays the loan without any default then there is no risk at all. Since, you are keeping one of your prized possessions at risk, it is crucial to check everything about loan process so to create no room for any errors. Here, we are listing some points that you should take into consideration before taking LAP.

♦ Interest rate: Once you make up your mind for LAP, the first thing to look after is interest rate comparison. There are innumerable lenders in the market offering loan against property but it’s important for you to choose the favorable deal offered by particular lender on affordable interest rates. Therefore, compare the interest rates between lenders online and choose one that offers you best deal.

♦ Loan documents and payment terms: It is always advisable to read the documents carefully before signing any loan agreement as doing so without proper knowledge can cost you too much in the long run. So don’t make a hurry to seal the deal without checking every document properly, especially, when you are unable to understand the terms and conditions properly.

You can also seek help from a financial expert who lets you understand the fine line that you should pay attention to in your loan documents which involves terms of prepayment, minimum and maximum prepaying amount, any clause that allows the lender to change the terms of the loan and at the end one of the most important clauses after defaulting on a loan.

♦ EMI calculation: Whenever you “Apply For Loan against property Online“ or offline, it is important to calculate your estimated EMI. It will help you to analyze your affordability as well as helps you to plan your monthly budget accordingly. One should not default on paying the EMIs for the loan that you secured against your property. Hence, do calculate your monthly installment to repay the bank and then decide on the loan quantum that you want to take against the property. There are number of lending platforms available online where you can use the EMI calculator to this accurately.

No matter what, a loan against property can be a great way to fund your bigger cash requirement. It’s upon you to utilize this option wisely while applying for LAP.

Uncertainties in life can come at any time and financial ones are always unannounced where our savings can also fail. Most of the people create emergency funds while imagining the emergency scenarios but sometimes we do not have enough funds which are needed at that time. In such case, you may ask for credit from your relatives or friends or you can opt a loan from a bank. However, friends and family can help you but not with the desired amount then the best way to deal with such situation is taking a “Loan against property“.

A loan against property is a secured loan to meet your personal as well as business needs by mortgaging your property. The loan can be secured against any residential, commercial property or sometimes agricultural land also. A borrower can get a LTV of 70-75% of the market value of the property. This loan can provides you a larger amount with lower interest rates and there is no restriction on the use of borrowed money.

Understand the Essentials of loan against Property
♦ Interest rate: The rate of interest on loan against property is much lower than other unsecured type of loans as your property act as collateral which assures the lender about the repayment as they have property rights with them. The borrower can also choose from the floating and fixed rate of interest as per their convenience.

♦ Risks involved: In some situation, when you are unable to make the repayments, lender has the right to sell your mortgaged property to recover their outstanding dues from that. Therefore, if you “Apply For Loan against property“ you are always at the risk to lose the ownership of your mortgaged property if you are unable to repay the borrowed amount.

♦ Documents: The papers required to submit or uploaded to avail the loan against property online or offline includes identity proof, address proof, ITR slips, bank statements, property documents in your name, passport size photographs etc.

♦ Eligibility criteria: The eligibility criteria for LAP is same as other loans depending upon the CIBIL score, income, age, qualification, assets and on the organization or employer with whom the loan seeker is working. The loan quantum is only approved when the borrower can meet the set of eligibility criteria set by the particular lender. Once your loan gets approved, the loan money is disbursed either in full or in installments into your provided bank account.

Hence, loan against property is best solution when you need a huge amount of money. It is highly recommended because there is no restriction on the use of borrowed money, from fulfilling your personal emergencies to your business needs, it is just one solution for all. The biggest advantage associated to this loan is you get the funds at comparatively lower rate of interest. It can be availed by both salaried and self-employed professionals and the maximum tenure period for this loan can go up to 15 years depending upon the eligibility and credit profile of the borrower.