Understanding The Loan Against Property Interest Rates And Charges

A loan against property (LAP loan) lets you enjoy a considerable amount at a lower interest rate that you can use for plenty of reasons.

But, when you apply for a loan against property, you need to bear the interest charges and other costs. And it is usual and just like any other loan that you apply for.

Thus, it would be good to be aware of the loan against property interest rate and related charges. It can make you be in complete control of what charges to pay over the tenor.

Read on and know more!

Loan against property interest rate charges

Since a property loan is secured finance, the loan against property interest rate is on the lower side, starting at 8.35%.

The loan against property interest rate is determined by the market value of your property to be mortgaged and its current condition.

The tenor over which the loan against property is repaid, the interest rate gets computed yearly and added to the EMIs.

Loan against property processing charges

A loan against property processing charge is nothing but application fees.

The fee is to cover administration charges, the cost of running credit checks and property evaluation.

The amount is deducted from the total amount before being disbursed to you.

Loan against property statement charges

Many lenders also charge an amount for interest and principal statements, including statements helping you monitor the loan progress.

Other charges

Rest loan against property charges includes EMI bounce charges and penal interest.

You also have to deal with part prepayment, foreclosure charges, including a secure fee to book your loan offer.

The best thing to know about the exact loan against property interest charges and more would be to land on your preferred lender’s site and check all beforehand.

This way, you can be best assured of how much to manage.