Easy Ways to Pick the Right Loan Against Property Tenor

What is a Loan Against Property Tenor?

A tenor is a specific period for which any loan is sanctioned. This timeframe is mutually decided by the borrower and the lender at the loan approval stage and usually ranges from a few to several years, depending on the terms and conditions set by the financial institution.

When you borrow a Loan Against Property, you should be able to repay the entire loan amount with the accumulated interest within a given tenor. You also need to accommodate other financial obligations. Factors such as your income, EMIs, and tenor determine the cost-effectiveness of your loan. This article helps you understand the factors that affect your Loan Against Property Tenor. 

Read Also: Documents Required for Loan Against Property 

What are the Factors that Affect Your Loan Against Property Tenor?

Loan Amount

Your loan amount directly affects your loan repayment process. Therefore, a smaller property loan amount can 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 for a given tenor fits your repayment capacity without hampering other financial plans. 

Maximum Age

Another aspect to consider when you are in the process of selecting the right tenor is your age. Lenders often consider 70 to 75 to be the maximum age (at the time of loan maturity) for all applicants. Hence, if you borrow a loan close to that age, you’re unlikely to benefit from a long tenor. However, older applicants can consider borrowing with a younger financial 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 and expenses allows you to evaluate how you can accommodate your EMIs. 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 finances, you can aptly gauge how you can spend toward paying off your Loan Against Property.

Accurate Calculations

You can use online tools along with 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 helps you figure out your EMIs. 

Additional Read: Procedures for a Loan Against Property

Final Thoughts

Understanding the Loan Against Property tenor is important, as it determines the repayment period agreed upon by both borrower and lender. Factors such as loan amount, age, income, and future financial plans influence this decision. Utilising online tools like an EMI calculator aids in making informed choices for effective loan management.

*Terms and conditions apply.

Read Also: Difference Between Home Loan and Loan Against Property