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How to Pick the Right Loan Against Property Tenor

3 min 30 Jun 2022
Highlights
  • What is Loan Against Property Tenor?
  • What are the Factors to Consider for a Loan Against Property Tenor?
  • Why is Selecting the Right Tenor Important?

What is Loan Against Property Tenor?

When you borrow a Loan Against Property, the tenor you choose should be able to accommodate your ongoing financial obligations as well as your future goals while ensuring that you repay the loan amount complete with the accumulated interest.

The best repayment tenor is not a standard number but a number unique to your financial and repayment capacity. It is necessary to select a tenor that is practical and cost-effective, as your repayment schedule should be sustainable over the next several years.

This page illustrates easy ways to arrive at the best Loan Against Tenor based on your profile.

What are the Factors to Consider for a Loan Against Property Tenor?

Loan Amount

Your loan amount directly affects your loan repayment process, and that’s why a smaller Loan Against Property amount will take less time to repay than a sizeable amount. So, before you decide to apply for a Loan Against Property, make sure that the loan amount you borrow fits into your repayment budget and can be paid off without inconveniencing your other financial plans within your preferred tenor.

Maximum Age

Another aspect to consider when you are in the process of selecting the right tenor is your age. Lenders often consider 58 to be the maximum age (at the time of loan maturity) for salaried and professional applicants, so if you borrow a loan close to that age, you’re unlikely to benefit from a lengthy tenor. Use this information to tailor your loan amount accordingly and borrow only so much that you can repay comfortably within the given tenor.

However, older applicants can consider borrowing with a younger co-applicant for a chance to get more flexible repayment terms.

Monthly Income

Applicants should ensure a thorough assessment of their financial and income profile before making a loan application. Having clarity of your income in-flow and expense out-flow allows you to evaluate how much you can spend in terms of EMIs and for how long. This helps in determining a suitable tenor as per your convenience.

Additional Read: 3 Different Loan Against Property Types You Should Know About

Future Prospects

While the Loan Against Property will help you address your current financial needs, you should also plan for your future financial goals and aspirations. To do this, you should chalk out a plan for savings and expenditure that spans over decades. By knowing how you would like to allocate your repayment capacity, you can aptly gauge how much to spend toward paying off your Loan Against Property.

Accurate Calculations

You will need more than just your insights and personal analyses to accurately decide the best Loan Against Property tenor. An EMI calculator can help you decide the exact period it will take to pay the loan and what your best Loan Against Property terms may look like.

The Bajaj Housing Finance Loan Against Property Calculator does not only help you figure out the tenor, but also tells you the amount you will repay in installments.

Must Read: Procedures for a Loan Against Property

Final Thoughts

Once you consider all these factors, you can tailor your repayment period basis your eligibility and requirements. Planning with foresight helps you maintain repayment discipline and ensure that your credit profile doesn’t take a hit.

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