5 Mistakes To Avoid While Taking A Loan Against Property

All of us face monetary crises at some point in our lives, and during the current financial year, we can say that this is true for most people. In such times, financial assistance can help us cope with the cash flow challenges, whether personally or professionally. NRI Loan Against Property is one such loan that gives you higher borrowing capacity compared to any other loans, like NRI Housing Loans. With an NRI loan against property (LAP), you can securely put your residential or commercial property such as a house, flat/apartment, office, or a shop for collateral and avail the funds which can be used for any purpose you want, like business expansion, marriage, medical emergencies, etc. However, the property which you are keeping as collateral must be self-owned. Since LAP involves keeping one of your most prized possessions at risk, you must understand the process thoroughly along with the mistakes that you should completely avoid.
Some of these mistakes to Avoid while taking NRI Loan against property
1. Not having your pre-requisites sorted
Before applying for the loan, it is necessary to have your requirements sorted along with the documents needed for the same. Lenders take into consideration some important factors like your income, credit history, and the present value of the property, to determine your eligibility for the loan.
2. Not comparing the interest rates
Just like for any other loan, when you’re choosing a lender for your LAP you should compare interest rates and choose the one that offers affordable rates to lower your EMIs.
3. Not thinking about the tenure
The tenure of a LAP is important as it determines your repayment ability. It is suggested that you don’t opt for a longer tenure if you can afford to repay sooner. Also, a shorter tenure attracts a lower interest outgo amount, therefore, making shorter tenures much more feasible.
An NRI loan against property is a great way of obtaining funds in times of financial emergencies.