Also known as a mortgage loan, a loan against property allows individuals to pledge their property to secure a high-value fund at affordable interest rates. When opting for this form of credit, individuals do not have to sell their property.

However, before applying for this credit, individuals need to consider a few aspects to reap its benefits.

• LTV and loan amount

Depending on the loan against property eligibility, lenders decide the LTV of this credit. Usually, individuals can qualify for an LTV of up to 75% on this loan. Moreover, top financial institutions also provide a substantial loan amount after assessing the current market valuation of the property pledged.

The loan amount also depends on the property type, city of location, etc.

• Interest rates

Being a secured credit, a loan against property accompanies a nominal interest rate. Since it varies with different lenders, individuals should use a loan against property interest rate calculator to compare and settle for the best financial institution. However, first, they should select between fixed and floating interest rates.

• Repayment options

Lenders approve a loan against property application after assessing the repayment capacity of an applicant. On the other hand, it is equally vital for intending borrowers to check the repayment tenor, EMI payable and likes before opting for this loan.

In this regard, they can access a loan against property EMI calculator to estimate the monthly instalments. Borrowers can choose a tenor of up to 20 years and service affordable interest rates.

Note that individuals cannot avail a loan against property without income proof as it is vital to determine the loan eligibility.

• Additional charges

Besides the processing fees, selected lenders also impose various additional charges on this loan that can be hefty. For instance, they often charge part-prepayment and foreclosure charges as and when applicable. Therefore, you should look for a lender that does not levy any additional cost.

Alongside, individuals should also consider the eligibility and loan against property documents required before applying for this advance.

These are vital aspects of a loan against property that you need to consider while opting for this credit.