Factors that affect your Loan Against Property Tenure

1. Factors that affect your Loan Against Property Tenure The mortgage loan is generally availed for meeting personal and business needs. The rate of interest of mortgage loan is generally low because it is a secured loan. The tenure of mortgage loan goes up to 15 years. Both salaried and self-employed individuals can avail mortgage loan. Nowadays, many banks and NBFCs offer a mortgage loan. Different type of mortgage loan is available in the market, you can apply for the suitable type of ​loan against Property​ which suits and fulfill your requirements. You can decide the tenure of the loan depending on your capability of repayment because long tenure leads to lower EMIs but higher interest payments. There are several factors which play an important role at the time of taking a loan against property. Some of the factors the affects your loan against property tenure Loan amount Generally, the higher the loan amount, the longer will be the tenure. Longer tenure is preferable by the lender because they will get more interest amount. Sometimes, it is preferred by the borrower also because longer tenure leads to

2. lower EMI amount. An individual should keep in mind that the EMI should not exceed 40% of the take-home pay. Longer tenure also increases the eligibility to get a higher loan amount. You can check your loan amount eligibility using online eligibility calculator EMI EMIs plays an important role at the time of deciding loan against property. The fact is that the lower the EMI, the longer will be the tenure. Some customers cannot afford higher EMI. They can choose longer tenure and shorter EMI. On the other side, if you are comfortable in paying higher EMIs, you can choose a shorter tenure because it will help you in reducing a lot of money on the interest paid. Age Age is also an important factor in deciding the loan against property eligibility. This is because the lender wants to make sure that the loan should be repaid before the retirement of an individual. Thus, many lenders refuse to lend loan against the property to the older people unless they can prove that they have a dependable and sustainable source of income. The lender will be more comfortable in providing a loan to the younger people compared to the older people. For example, a 25-year person will find easier to choose his own tenure to repay the loan as compared to a 50-year-old person. Income Income and expenses are important factors that impact your loan tenure. Most of the time, it is seen that many individuals choose shorter tenure which results in higher EMIs. Sometimes, a borrower is unable to repay loan EMIs on time that results in a low credit score. There are several online EMI calculators that assess your income and expenses to provide best loan opportunity with optimal tenure to your profile. Additional Reading:- ​Loan Against Property or a Home Loan: Which is a Better Option for You So, the borrower should always consider these points in mind before going for a loan against property. You should always be very careful in going ahead with any loan proposal from a bank or Non-banking financial institutions. They should

3. carefully analyze and try to reach an optimal balance in terms of loan tenure, a rate of interest and monthly installments. You can also take the help of any online EMI calculator to reach the optimal balance in your loan proposal which is easily available on the bank's website or on the websites of online aggregators.