A Loan Against Property is a long-term investment and should be well thought out. Considering that it is a secured loan that comes with a sizeable sanction, the repayment tenor can often stretch up to several years.
It is imperative that you select a tenor that is comfortable and practical so you can keep up with your repayment schedule. It is best to make an informed decision by considering a series of factors to arrive at the right tenor, including your monthly disposable income and possible increase in income and expenditure in the coming years, amongst others.
Before agreeing to the terms of a Loan Against Property, you should ensure that the tenor satisfies your needs. It will mean that you should have a clear idea of what your financial goals are – both long and short term. If you are looking to close the loan early and are in a position to pay larger EMIs, opt for a shorter tenor. If you would rather pay smaller EMIs but are comfortable with a larger interest outflow in the long run, you can choose a repayment tenor of up to 17 years. Whatever be your need, your ideal Loan Against Property tenor should be able to accommodate them all.
Some of the factors that are considered before approving a mortgage loan tenor in India are:
1. Your Age
Your age is an important parameter as it helps the lender realistically gauge how long you can keep up the repayment. Younger applicants may enjoy a longer repayment tenor simply because they have a longer career ahead of them. Older applicants may find themselves at a disadvantage here, depending on how close to retirement they are. However, the applicant’s age is not considered in isolation – so applicants can still get their desired loan amount, even if they fall short in this aspect if they surpass the other eligibility expectations. This is especially true if you add a younger co-applicant to your Loan Against Property application.
2. Your Ongoing Financial Obligations
Your financial obligations also have a bearing on the kind of repayment tenor you stand to get. If you already have a substantial quantum of obligations, you may not have access to a longer repayment tenor, as your repayment capacity is already divided. To enjoy a longer repayment tenor, you can consider closing other ongoing debts before applying for a Loan Against Property.
3. Your Property Profile
As the name suggests, a Loan Against Property is a loan that is sanctioned against collateral – typically a residential or a commercial property that you own. The value of your property also determines the repayment tenor you stand to get. The age, location, and the market value of the property are considered while deciding the repayment tenor – as these are prominent determinants of the collateral’s risk profile.
Provided you meet the important Bajaj Housing Finance Loan Against Property eligibility asks, here is how a longer repayment tenor can benefit you:
1. Smaller EMIs: A longer repayment tenor would mean you have more time to repay the loan, effectively breaking down each EMI into smaller parcels. While it doesn’t mean that your interest outgo would be reduced, it does make your monthly EMI more feasible in the long run.
2. Competitive Interest Rate: You can enjoy a competitive interest rate better through a longer repayment tenor as the interest component of the loan is made manageable through the course of the tenor. If you opt for a shorter loan tenor, you may save on the total interest outflow, but will end-up shelling out bigger chunks as interest.
The Bajaj Housing Finance Loan Against Property is a flexible funding solution that addresses financial expenses of all sizes at reasonable interest rates. Consider applying for it if you need urgent funds, as we disburse the sanctioned amount into your account within 72 hours* after document submission and loan approval.
*Terms and conditions apply
