The loan is a safe loan in lieu of property.
If you are taking a loan in lieu of property in an emergency or special circumstances, then you should be careful with some possible dalpies, which later become the cause of trouble for you. In lieu of property, loan is a safe loan that is given in exchange for a residential or business property such as a house, flat/apartment, office or shop. The property works as a collateral. This type of loan can be used for business expansion or for personal purposes such as marriage, medical emergency etc. in the family. In such a loan, banks keep in mind your income, credit history and current value of property to determine your debt eligibility. Come, let us discuss which mistakes should be avoided while taking a loan in lieu of property.
Not to compare interest rates
While choosing a bank or other financial institution for a loan in lieu of property, it is important to do your proper home work. You should compare interest rates between banks and choose a lender that provides affordable rates to reduce your similar monthly installments (EMIs).
Focus
The loan duration is important in lieu of property. According to HDFC Bank, do not choose a long -term option just because you have been offered this. If you are able to repay the loan quickly, do it. Low interest has to be paid in a short period.
Do not ignore the loan agreement
Many people do not carefully read the terms and conditions given for loan in lieu of property. Later, they have no choice during any kind of trouble.
Disintegration
The loan usually takes time to process the loan in lieu of property as banks need time to evaluate your property before the loan is approved. It is advisable that you inquire from the bank about the required time taken to approve and distribute your loan so that you can match your needs of money with the distribution program of the bank.
Do not ignore your credit score
Even though the loan is a safe loan in exchange for the property, but your credit score is taken into account when processing your loan application. A high credit score can give you a loan on favorable terms and also increase the possibility of approved the application.
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