Loan Against Property in Noida Rules to Follow

Loan against property in Noida is a good option but it is better to understand it completely first. In case you need some lump sum amount for any purpose, then this LAP stands one of the best options. This loan can be raised against any type of property either commercial or residential. Basically, the lenders provide the money to borrower by mortgaging the property or simply keeping it as collateral at an affordable rate of interest. 

 

Let’s have a look at five rules that borrower needs to follow before availing of such a loan:

1. Consider financial situation and then borrow

Do not forget to consider your financial status as no EMI i.e. Equated Monthly Instalments on your outstanding loans should cross 65% of your net income. 

How will you manage to repay the loan should be the very first question if LAP is being considered. 

2. Better to opt for shorter loan repayment tenure

There is an option to choose LAP with a repayment period of up to 15 years maximum. But, don’t forget that when you choose a longer repayment tenure, the EMIs may reduce, which may be tempting but you have to significantly higher interest over the longer duration. 

3. Always Make repayments on time

Any delay in EMI may land you in trouble, lenders often can put up heavy penalties. It then will increase the overall cost of your borrowing.  Also, in the credit score the late payments are reflected that might reduce the future possibilities of availing the loan. 

Therefore, to avoid such situations and always be open to avail the loan it is important for the borrower to pay the EMI in a timely manner.

4. Terms and conditions Should be read Carefully

The loan documents are important and should be read completely without any negligence. To avoid any nasty and unfavourable condition in the figure, make sure each and every point is read and understood.
Hope this reading has helped you understand the rules before you avail loan against property in noida.

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