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 on the basis of all parameters like your income, credit history and current value of the property etc.Savings account
According to the information given on the website of HDFC Bank, you should never make some mistakes while taking LAP, otherwise you will have to regret later. Know about this here-
1. Not comparing interest rates
Before choosing a lender for LAP, you should do some due diligence and compare the interest rates of the lenders. Then choose the lender that offers you affordable rates for a low equated monthly installment (EMI).Savings account
2. Not paying attention to the loan tenure
The duration of the LAP is very important. Do not choose the loan tenure by thinking how long a period you can choose according to your convenience. If you can repay the loan quickly, then choose a shorter tenure. A shorter tenure will require less interest to be paid.
3. Ignoring the loan agreement
While taking a loan, many people do not read the terms and conditions under which LAP is given to them. This should not be done, otherwise it can be difficult for you later.
4. No rush in disbursal time
Loans against property take time to process as the lender needs time to evaluate your property value before approving the loan. It is therefore advisable to check 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 your credit score is still taken into account while processing your loan application. A high credit score can help you get a loan on easier terms and also increase the chances of your application getting approved.