Lidea Feed

Loan Against Property: If you make these 5 mistakes while taking a loan against property, you will regret it later..

Shikha Saxena December 23, 2024 05:15 PM

Loan Against Property (LAP) is a secured loan. In this, you take a loan from the bank by mortgaging one of your properties. Banks give this loan to the borrower based on all parameters like your income, credit history, and the current value of the property. According to the information given on the HDFC Bank website, you should never make some mistakes while taking LAP, otherwise, you will have to regret it later. Know about this here-

1. Not comparing interest rates
Before choosing a lender for LAP, you should do some hard work and compare the interest rates of the lenders. After that, you should choose the lender who gives you affordable rates for low-equated monthly installments (EMI).

2. Not paying attention to the loan tenure
The tenure of LAP is very important. Do not choose the loan tenure thinking how long a tenure you can choose according to your convenience. If you can repay the loan quickly, then choose a shorter tenure. Less interest amount has to be paid on a shorter tenure.

3. Ignoring the loan agreement
While taking a loan, many people do not read the terms and conditions under which they are given LAP. This should not be done, otherwise it can be difficult for you later.

4. Do not rush in disbursal time
Processing a loan against property takes time as the lender needs time to evaluate your property value before approving the loan. In such a situation, you should know about the time taken by the lender to approve and disburse the loan, so that you can match your fund requirements with the lender's disbursal schedule.

5. Ignoring your credit score
LAP is a secured loan, but still, your credit score is taken into account while processing your loan application. A high credit score can get you a loan on easy terms and also increase the chances of the application getting approved.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.