Loan against Property (LAP) is a loan which you get by keeping a commercial/residential property as a collateral. This makes it a secured loan as you give a guarantee of repayment using the property as the security.
Below, we have listed some of the important FAQs regarding Loan Against Property:
However, we would suggest that you keep the below mentioned points in mind before you sign up for a LAP:
Loans against property comes with a tenure of up to 30 years which makes it very tempting to opt for a lower EMI. But in the long run, you end up paying more interest rate than you would have paid if you opted for a shorter tenure. The best solution is to ask your loan provider to keep increasing your EMI amounts every year in line with the rise in your income so that you repay the loan sooner.
When it comes to paying the EMIs, you should always make it a ritual to pay it on fixed dates every month. This will not only save you from not getting a late payment penalty but will also maintain a good record in your credit score. Irregular payments of loans may decrease your chances of taking a loan next time. To calculate your EMI, Visit Home Loan EMI Calculator page!
If you take a loan of a huge amount then we advise you to take an insurance cover as well. This will lessen the burden on your family under unfortunate circumstances. You can opt for an insurance equal to the amount of loan or a regular term plan insurance which will continue even after your loan repayment, whichever is more suitable.
To find out the mortgage loan interest rates and more key features of LAP click here.
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