Easy Tips To Getting Mortgage Loan Against Your Property

Mortgage loan against property has seen a stable and upward growth. And the segment is expected to see even more appreciation in the coming days. This is a type of secured loan in which you, as a borrower, can mortgage your home or any other property and take out a loan against it. The amount you can borrow depends upon the value of your property. You can get, on an average, 40 to 60 percent of the value of the property, as loan.  

Mortgage Loan Against Your Property

Here are some easy tips to get the most out of your property deal.

Tips To Follow While Taking Out A Loan Against A Property

Life is unpredictable. You may have to face an emergency at any point of time. Most emergencies associate financial crisis. When you need a large amount of money, a loan against property (LAP) would be the best.

Let’s have a look at the following pointers before you sign on the agreement.

  • Don’t Borrow Beyond Your Capacity

don't borrow beyond capacity

Unless you have the facility to repay the loan through Easy Monthly Installments (EMIs) for many years to come, you shouldn’t borrow any amount beyond your financial capacity. The basic rule of thumb suggests that the monthly EMI for a loan must not surpass 60 to 65 percent of the borrower’s net taxable income. Most nationalized as well as private banks offer LAP for an average of 40 to 60 percent of the property value. Make sure you have required financial capability to pay off the amount you are borrowing. If the EMI amount eats up a good chunk of your monthly income, you may have to compromise on other financial targets like retirement plans or children’s education.

  • Choose A Shorter Duration

shorter duration

LAPs are often available with tenure of a maximum of 15 years and that, in most cases, makes it really tempting to go for a lower EMI. But in long run, it may require you to pay much more in interest than you would have repaid for a loan with shorter duration. Even if it is not presently possible for you to take a loan with lower tenure, you can ask the bank to increase the EMI amount each year in line with you increasing income. The shorter your loan tenure is, the less loan burden you’ll have.

  • Make Payments On Time

make payment on time

Apart from non-payment penalties, untimely payment can negatively affect your credit score. Besides, it can also leave you with a hefty interest on the unpaid amount. And that can diminish your likelihood to getting another loan. Be disciplined and punctual in repaying the loan.

  • Buy Insurance With Big Loans

buy insurance big loans

If you are going to take a big property mortgage loan, it is highly recommended that you get adequate insurance coverage. In case of a mishap, this would reduce the burden on your family. It is likely that your bank will provide you with a term cover equaling to the unpaid amount. However, you can also opt for a regular term plan.

These are just a few of many useful tips you may follow to ensure getting the best loan against property deal and avail it easily from www.bazaarmoney.com/home-property-mortgage-loan-funding-india.php


5 Points to Consider Before Applying For Personal Loan

Since Personal Loans are given to individuals without any security for their personal use, its demand is quite high in India. Not only are they easily available but you will have complete freedom over its usage as the lender won’t be monitoring it.

Apply & compare personal loan

Though the advantages offered by personal loan are numerous, applying for it just because you can fulfill all its eligibility criteria is a strict no-no. If you think that repaying the money will affect your finances, you better think twice before borrowing. As a borrower, you should not only compare the loan before applying but also ask yourself few vital questions.

Applying For a Personal Loan? Few Vital Points to Consider

  • “How Important Is It?”

If you are applying for the mortgage to buy something expensive, think whether it’s just a luxury or a necessity. Using your credit cards for daily transactions is a cool idea and you can earn reward points as well. You can even repay the outstanding amount before the due date. But taking a mortgage to buy something expensive which is actually not necessary is never recommended. The best you can do is save your money and buy it later.

  • “Is The EMI Affordable?”

EMI or Equated Money Installment is the fixed amount you have to pay to your lender every month. The date is specified and the EMI comprises of both the principal amount and the interest. When you take a personal mortgage, you have to follow a strict repayment schedule. If you are not sure about your capability of paying the EMI, its better you rethink.

Loan Application & compare

  • “Is It Fine To Borrow For A Vacation”

Though everyone needs a break at frequent intervals, applying for a mortgage just because you don’t have sufficient cash for all the expenses is not a cool idea. The main objective of a vacation is to relax. Since you have to repay the money after your return, you can’t have complete peace of mind even during your vacation. Even if you are taking the mortgage, think how you will repay it before starting the tour.

  • “When Should I Apply For The Loan”

If you have numerous credit card debts, taking a mortgage to repay those is a cool idea. Consider the repayment tenure and decide whether the shorter or longer tenure is more suitable for you. Whatever be the time you are applying for the loan, look for a consultant who can help you with Loan Application and comparison in India.


  • “What Will Be The Consequence If I Can’t Repay On Time?”

Considering the long-term effort of the mortgage before applying is a must. You need to think of the situation you might face if you can’t pay the EMI on time. If you accidentally lose your source of income in the future, you might have to face extra pressure. Every late payment will have a negative impact on your credit score.

This being said, make sure to consider all the points stated above & myths for opting loan application so that you can compare and choose the best loan!