But since this involves keeping one of your most prized possessions at risk, it is important to be absolutely thorough with the process and leave no room for errors. If you are planning to take loan against property, make sure you don’t make these five mistakes:
1. Not having pre-requisites sorted:Once a loan approval comes in, the process is still easy and simple. But the journey to get a loan approval is a task in itself.
Before applying for the loan, make sure that you have all the required documents and have worked well to keep your credit score high. This will smoothen out the future road for you.
2. Lack of research:The basic research that one must do while opting for any loan, especially loan against property, is analyzing the market to get the best deals.
Everything must be factored in, including the interest rate and the EMI. It is also necessary to understand and make the right choices.
For instance, you might be offered a longer loan tenure but if your capacity allows you to repay it early, then do that.
This will help you bring down the interest rate and save money. Extensive research and understanding are absolutely important.
3. Not taking enough buffer time:Nowadays, lenders and companies pride on quick loan approval and amount disbursement periods. But loan against property usually takes longer than other loans.
This is because here the officials would first have to pay your property a visit and analyze its market value.
This becomes one of the factors deciding the exact terms of your loan. Hence, always calculate and take some additional extra days to avoid being in a tough spot later.
4. Being careless with the paperwork:While it is tempting to take loan against property since the loan amount is usually huge with a longer payback time, it is also important to be thorough with the clauses of the loan.
Paperwork forms the crux of any loan process and therefore, not going through each and every term and condition of it might end up being a huge mistake. The details are always hidden in the fine print.
Avoiding these five mistakes can help you reap the maximum benefits from the loan you avail!
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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