277 Borrowers must always focus on choosing a lending institution that offers the lowest property loan interest rates to make their borrowings affordable and EMI payments within the limit. Hence, potential customers can follow the tips mentioned below to reduce their loan against property interest rates and maximise their benefits on the credit facility. 6 tips to reduce property loan interest rates Here are the tips one should follow to avail of a loan against property at the most affordable rates. Mortgage a high-value property Since the borrower has to mortgage his/her property, lenders will examine the property profile before determining the loan’s interest rate. The factors that are taken into consideration include the location, market value, age and condition of the property. Thus, one should well maintain his/her property. For example, someone with a well-maintained property at a prime location can get a lower interest rate than someone with an old-worn property. Opt for a shorter loan repayment tenor The property loan tenor that borrowers opt for also affects the interest rates. Generally, if a borrower opts for a shorter repayment tenor, his/her overall interest outgo will be lower. This is because in longer repayment tenors, the possibility of the borrower failing to repay the loans increases, thereby increasing financial institutions’ risk. Maintain a stable income Even though a borrower needs to keep a property as collateral for these loans, the lender will check a borrower’s income to understand his/her loan repayment capacity. Therefore, maintaining a stable source of income can help one get a loan at reduced interest rates. Choose a floating rate of interest In general, lenders give borrowers the option of choosing between floating and fixed interest rate. As the name suggests, fixed interest rates remain the same till the end of loan repayment. On the contrary, floating rates are based on the RBI’s benchmark rates, and thus, they tend to change every quarter. Since they change with market fluctuations, floating interest rates are usually lower than fixed rates by a small percentage. Keep a good relationship with the lender Borrowers with a long history and a good record of repayment with a lender usually get lower interest rate offers. Thus, borrowers must try to maintain a good relationship with the lenders to avail of attractive interest rates on a LAP. Keep a good credit score and history Though one’s CIBIL score doesn’t play a crucial role when availing a secured loan, however, borrowers must try maintaining a good CIBIL score to avail lower interest rates and better loan servicing terms. So, the average CIBIL score for a property loan that one should maintain is 750 or above. The higher the CIBIL score, the more the chances of quick loan approval and low-interest rates. Besides these above-mentioned points, borrowers should always compare various lending institutions. Before choosing one, they should compare the interest rates, services, discounts, etc., of different lending institutions. Reputed lending institutions provide loans against property at different interest rates, and since a loan is a long-term commitment, borrowers must conduct thorough research. To see how much property loan EMI a borrower has to pay for a particular sum of money, he/she can use online EMI calculators available on the websites of lending institutions. This way, borrowers can clearly understand which financial institution they can choose to avail themselves of loans at the most affordable rates. In addition to this, several financial institutions provide pre-approved offers to their existing and new customers to make the loan process smoother. These are available on various secured and unsecured products. Borrowers can check their pre-approved offers by entering their names and contact numbers on the pre-approved section of the financial institution’s website. To conclude, borrowers can keep these tips in mind to avail low property loan interest rates. After conducting the research and deciding which financial institution would be preferable, borrowers can begin with the application process. Alternatively, they can also visit the office of their nearest lending institutions and talk with their representatives. Loan Against a Property 0 comment 0 FacebookTwitterPinterestEmail Uneeb Khan Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World. previous post Nothing has changed for sneakerheads. Obviously UGG next post How to End this Year | Gift Ideas for New year’s Eve Related Posts KMSPico and Kernel Reliability – Addressing Worries and... 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