A loan against property is a secured loan you can avail against your residential or commercial property for fulfilling various personal or business needs. These expenses include making business investments, fulfilling medical emergencies, planning travel or weddings etc.
Loan against property rates are lower as it is a secured loan and is easy to avail against property without any rejection. Along with loan against property rates, the other crucial factor that impacts your borrowing against property is loan tenure.
What should be the ideal tenure of your loan? Should you avail of a short-term loan or loan term loan? How can you reduce the cost of borrowing?
Here are factors that can help you decide the ideal tenure of your Loan Against Property
- Loan Amount: The amount of loan you want to avail against your property also directly impacts the loan tenure. The higher the loan amount, the higher will be loan tenure. Also, the longer tenure eases the EMI payment as EMI is spread out throughout the tenure. On the other hand, the interest outgo increases with the longer tenure. You can avail of a loan for a maximum tenure of 20 years.
- Age: Your age is another factor that can help you decide the suitable tenure of your Loan against Property . If you are in your early 20’s & 30’s with a steady income source, you can avail of the longer loan tenure. On the other hand, if you are near retirement age, you should avail of a short term loan against property as you may have limited sources of income.
- Rate of Interest & EMI: If you want to reduce your monthly outgo on loan against property, you should avail of a longer tenure. On the other hand, if you wish to have lower interest outgo, you must choose a shorter tenure.
Bottom Line: With a MyLoanCare EMI calculator , you can calculate the EMI for different tenures and choose the tenure that suitably fits your budget.
About Author
Neha Wadhwa
Neha is a mass communication postgraduate and works here as a Senior Content Writer with a total work experience of 4 years. She is a financial specialist and covers Personal Loan, Home Loan, Loan against Property, Gold Loan and investments such as FD and Savings. Before writing on Financial topics, she also wrote on different genres, primarily humour based lifestyle stories on trending real-life topics.
