New Delhi: A loan against property is a popular loan offering due to its low-interest rates and other charges. They are high-value loans that can be repaid over long durations. A number of leading lenders in the market offer lucrative deals on these loans.
Bajaj Housing Finance Limited, for instance, offers loans against the property of Rs.5 Cr*, or even higher basis eligibility, to salaried individuals and professionals at interest rates starting at 8.25%* p.a.
Before you decide on a loan against a property, it’s important that you consider the interest rates carefully.
Important Factors That Influence Your Loan Against Property Interest Rate
CIBIL Score
One of the crucial and deciding factors that influence not just your loan against property interest rate, but also your loan against property eligibility is your CIBIL score or credit score. While most credible lenders will accept a CIBIL score of 725 to extend any sort of funding, a score of 750 or higher is ideal to secure favourable borrowing terms.
If your credit score is lower, you could be considered a high-risk borrower and attract higher interest rates. And if your CIBIL score is much lower than 725, your loan application could be rejected. Thus, it’s important you work to enhance your score before applying. To this end, you can take several measures, such as clearing your outstanding dues, consolidating your debts, and restricting the number of credit inquiries you make.
Applicant’s Profile
The borrower's profile - age, whether salaried or self-employed, place of residence, monthly income, financial records, income tax returns, etc., will affect the loan against property interest rate. Older applicants and those with irregular and fluctuating means of income are likely to be charged a higher interest rate. However, younger applicants and those with regular and fixed salaries are likely to be charged a lower interest rate.
Mortgaged Property
The property to be mortgaged or provided as collateral is evaluated and assessed on the basis of its location, age and condition, documentation, insurance, etc. If your property is in a prime location and in a top condition, it will have a higher market value, fetching you a lower interest rate. As opposed to this, an old and worn-out property located on the outskirts of the city may get you a higher interest rate.
Loan Tenor
Loans against property are high-value loans that incur sizeable EMIs. The shorter the loan tenor, the higher will be the EMI amount. However, keep in mind that paying off your loans faster brings down your interest payout, thereby reducing the total loan cost. Applicants with the desired credit profile can benefit from the long loan tenor and use it to comfortably repay the loan.
Features and Benefits of Bajaj Housing Finance Loan Against Property
Hassle-Free Balance Transfer Process
Avail of competitive interest rates and better loan terms when you transfer your loan against property from your existing lender to Bajaj Housing Finance. Our easy eligibility criteria, minimal documentation, and quick processing ensure a hassle-free transfer process.
High Top-Up Loan Amount
We offer a sizeable top-up loan amount, free of end-use restrictions. This comes in handy when a sudden financial need arises, such as education or high-value purchases.
Quick Disbursal
Avail of funds against your property within 72 hours* of you submitting the required documents. We aim to make your borrowing experience as smooth as possible, and on that note – we also ensure speedy disbursal of your loan amount.
Part-prepayment and Foreclosure Facility
Individual borrowers enjoy convenient part-prepayment and foreclosure facilities at zero costs* with Bajaj Housing Finance and work towards reducing your interest outflow.
Flexible Tenor
A long-term commitment like a loan against property requires an option of repayment at your pace. We offer flexible repayment options with a tenor of up to 20 years, to eligible candidates.
Eligibility and Documentation
Our eligibility criteria are simple, requiring minimal documentation during the application process. This makes it easy for you to apply for a loan against property, with higher chances of loan approval.
Online Account Management
Access the details of your loan account online anytime, anywhere with our easy and convenient online customer portal.
Easy-to-Use Loan Calculators
Our online loan calculators will help you gauge your loan amount eligibility, projected EMI amount, and the percentage you can save by transferring your outstanding loan against property to Bajaj Housing Finance.
Apply Loan Against Property Online
You can apply for your loan against property online through our website. The whole process is fast, easy, and convenient. Check all the loan details on our website carefully and evaluate the EMIs payable using the Bajaj Housing Finance EMI Calculator. Once you’ve read through the fine print, complete the following steps to successfully apply for a loan against property.
- Go to the online application form and provide your personal details, such as name, date of birth, address, and contact details.
- Provide details of your income and other financial information to help us select the best deals for you.
- Submit the application form.
Once your loan against property application is complete, a Bajaj Housing Finance representative will contact you for processing your loan application. Provide the necessary documents and enjoy loan processing at your convenience.
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