6 Things to look out before taking Loan Against Property - Ruloans

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6Things To Look Out Before Taking Loan Against
Property
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Rate of Interest

• Check out the rate of interest of your desired
  loan deal. Make sure to do some background market
  research regarding various LAP (Loan Against
  Property) deals. It is always advisable to choose
  the lowest interest rate on mortgage loan as you
  can save big chunk of money.

3
All Purpose Loan

• An advantage of Loan Against Property is you can
  ask loan for any purpose/need. A loan against
  your property can be taken against a commercial
  or a residential property. You can also apply for
  this loan if you need funds to acquire new
  property. A take-over of your existing loan with
  refinancing is also possible with LAP.

4
Tenure

• Longer tenure more interest outflow
• While this means borrowers can enjoy a
  comfortable longer tenure of repayment with
  lesser EMI burden, it also means that you pay
  more interest

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Property in bank custody

• LAP will mean that the property will be locked up
  with the bank from the day you have taken the
  loan and till such time you have repaid it in
  full. This is why experts advise against taking
  LAP for long tenures. Also once you take LAP for
  a property, the same cannot be used to take
  another loan.

6
No Tax Benefit

• Unlike a normal home or education loan, there is
  no tax benefit if you opt for a loan against
  property. If you expect tax benefits against your
  loan repayments, you might want to consider other
  forms of loans.

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Longer Processing Time

• Just like a home loan, the credit approval of LAP
  is a long process wherein the bank goes through
  your income documents as well as all the
  property-related documents

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Thank You!
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