If you’re seeking to take a loan against a property, you should only make that decision after evaluating some important factors, such as your repayment ability and credit history. Doing this ensures that you never miss a payment that can negatively impact your credit score. One factor that you probably haven’t considered is the interest system for your loan against property.
You can either be placed on the fixed interest rate or the floating interest rate. While both look inviting due to their distinct benefits, you must choose the one that matches your needs. Lenders charge interest on the loan against property amount that you avail of, and that interest amount depends on the interest scheme that you are on.
It pays to understand how both interest rates work so that you can choose the most profitable one. Read on to learn about the floating interest rate on loan against property, its benefits, its shortcomings, and when you should select it.
This refers to the interest rate that is defined by activities in the base rate as presented by your financial institution. Your financial institution also relies on the Reserve Bank of India’s REPO rate. Other factors that determine the floating interest rate are the state of the economy and the stock market.
When you opt to be placed on a floating interest rate for your loan against property, ensure that you trust the economy. This is because your EMI value changes based on the market trends.
Below are the benefits of a floating interest rate:
Below are the shortcomings of a floating interest rate:
You should opt for a floating Loan Against Property interest rate in the following situations:
You can now take advantage of the incredible loan against property deals provided by Bajaj Housing Finance. Upon approval of your application, you can repay the loan amount with ease thanks to the low-interest rates and long tenor on our loan against property offers. Apply today and start enjoying massive financial benefits.
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Last update on 11-Mar-2021
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