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There are plenty of ways to get a good loan and get out of any tight spot, but if you are wondering what kind f collateral you need, a loan against property might be your best bet. If you are wondering how to get a good rate of interest on your loan, few tips to help you out are mentioned in this post.
When it comes to getting the right kind of loans to help you out in the case of an emergency, one of the first things you should consider is going for a loan against property. This is highly beneficial because any property you might have only appreciated with time, instead of depreciating. You can use this to your advantage by securing a loan and then paying it off through EMI in the way you think best.
While it is great to go ahead and get a loan against property, the interest rate charged for it differs depending on various factors. So to get a good rate of interest for your loan, you can opt for a couple of ways to decrease the burden. Here are few methods by which you can reduce your loan against property interest rates.
- Employment Status
One of the factors that banks and financial institutions look at while granting you loan against property is your job stability. This is to ensure that you have the capacity to pay back the lender in time not just now but in the future as well. Thus, if you work in a credible company with more than two years of work experience, you might be able to negotiate for better interest rate.
- Age
Most of the loans and interest rates are calculated depending on your age as well. If you are young, with a stable employment status, you can negotiate with the lender for a better interest rate. While as you age, you might have to pay more interest on your loan on property.
- Credit score
While granting you the loan, the first thing that your banks and the financial institution will look at is your credit score. If you have bad credit, then you will find it difficult to secure a loan or even good a good interest rate. So before you apply for loan, work towards getting your credit score up, and your rate of interest will automatically get a whole lot better.
- Balance Transfer
If you already have an existing loan, one smart way of cutting down on your interest rates is by going for Balance Transfer to another lender that is offering a lower interest rate. All you have to do is, look for a site that helps you do this, fill in your details, and make the loan against property interest rates comparison. However, make sure you choose a good lender and ensure that you are saving a good sum by doing this. Calculate all the costs that you might have to incur like prepayment penalty, processing fees, etc.
These are some of the pointers you should keep in minding when you are trying to get a good interest rate for your loan against property. With the right kind of documents and a good market value for the property, it will be easy to lock down on loan at low-interest rate!