While real estate, as an investment, opens a path for long-term wealth creation, it also allows you to secure financing when you require funds. Numerous property loan providers offer credit at varying terms and conditions. As such, comparing different options can be overwhelming.
Shopping around for these loans is crucial to ensuring you can get competitive rates and the best terms possible. Adhering to certain best practices can help you find the best credit deal on your investment property.
Best Strategies to Compare Property Loans
Beyond the promotional offers, each loan against property offers differs from another. Having a clear understanding of your individual needs will help you opt for a loan that allows you to save more in terms of the overall cost of borrowing.
Here are certain best strategies you need to follow when comparing property loans:
Identify the Right Property Loan
As mentioned earlier, the first step you need to follow is to determine your specific needs. Your choice may vary depending on the type of borrower you are.
This will depend on whether you are a first-time borrower looking for a conventional loan or a seasoned borrower in need of capital for a larger acquisition. Moreover, you can choose the best offer by assessing the eligibility requirements and the loan-to-value (LTV) ratio.
Weigh Different Loan Offers
Once you have recognised your needs, you can compare different loan offers. Begin by contacting the financial institutions with which you have a prior relationship. Lenders tend to offer better terms to existing customers.
The other important factor you need to review is the interest rates and other associated fees these lenders charge. The property loan interest rates can be fixed or variable determined by your creditworthiness and the market factors.
Note that the interest rates and associated fees will impact the cost of borrowing. Visit this page to compare interest rates on loans against property offered by some of the top financial institutions.
Compare Loan Estimates
A loan estimate is a crucial document that provides key insights related to the loan terms. These will include an estimated loan amount, quoted interest rate, fees, and other expenses.
By comparing these estimates, you can identify the most cost-effective offer. You can also use an EMI Calculator to know about the interest charges and monthly instalments. For instance, to calculate monthly obligations for a loan against property, you need only input three variables:
- Loan amount
- Interest rates
- Tenure
Compare Property Loan Interest Rates Offered by Top Banks/NBFCs
Comparing the interest rates allows you to zero in on the best property loan for your needs. Here are the property loan interest rates on property loans offered by some of the top banks and NBFCs:
| Bajaj Markets Partner Lenders | Minimum Interest Rate |
|---|---|
| Bajaj Housing Finance Limited | 10.10% p.a. |
| HFFC | 14.00% p.a. |
| ICICI Bank | 10.60% p.a. |
| India Shelter | 15% p.a. |
| L&T Finance | 9.60% p.a. |
| LIC Housing Finance | 9.45% p.a. |
| PNB Housing Finance Limited | 9.24% p.a. |
| Shubham Housing Finance | 13.90% p.a. |
| Shriram Housing Finance | 14.75% |
Disclaimer: The interest rates mentioned in the table above may change subject to changes in the lender’s policies.
Since a loan against property is a significant undertaking, it is crucial to know how different lenders work and how their offers differ from the others. Going through their interest rates will help you determine their affordability and feasibility. This way, you can pick terms that are easy to manage all through.
With a strategic approach, you can choose a financing scheme against your property that helps you save money and also work toward your obligations efficiently. This is where the Bajaj Markets platform comes into play, allowing you to compare loan providers and review all your options before you borrow.
Read More: Bajaj Markets Loan: Exploring Financing Solutions for Various Needs
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