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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.
Read Also: Documents Required for Loan Against Property
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?
Your loan amount directly affects your loan repayment process, and that’s why a smaller property loan 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.
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.
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
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.
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 EMI Calculator for loan against property not only helps you figure out the tenor, but also tells you the amount you will repay in installments.
Additional Read: Procedures for a Loan Against Property
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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Read Also: Difference Between Home Loan and Loan Against Property
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