What are the misconceptions that one can fall for?
The most prevalent myths that one can fall for in loan against property are as follows:
- Direct loan application letter:
Some things are very important that every applicant needs to consider is that multiple loan applications to various banks reduces the credit score multiple times, and hence affecting the loan eligibility. Everytime one makes a direct loan application with the lender, or bank, your credit score is enquired for evaluating your creditworthiness.
- Good credit score guarantee loan approval:
Credit score is obviously one of the important factors for generating higher eligibility, however its just not the one. Being in a dilemma that strong credit game can give you secured loan can be foolishness. Other vital factors which include your age, EMI commitments, property location, job stability etc are necessary too, failing to clear any one of them affect the process of loan approval.
- Property price decides the portion of loan:
The actual reality dismaying this misconception is that bank themselves evaluate the quantum of loan with value of the price of the property having to do soley anything in it. Some key points taken into consideration during this evaluation is the circle rate of the property, how old the property is, location and condition of the property. Such factors designates the value to property intended to be used as collateral. Hence evaluation of the property is solely dependent upon the bank assigned evaluator/valuation agency for loan against property.
What is the reality behind these misconceptions:
Busting a few myths behind some of misconceptions for loan against property are:
- Both residential and commercial property can be used to obtain a loan
- All the loan against property eligibility factors play equally vital role in secured loan approval.
- Bank calculates loan amount as per own property evaluation methods.
- In the case of loan against property, property used as a collateral remains under your control and ownership of property is not transferred to banks.
Taking charge of these points, differentiating between the actual facts behind getting approval for LAP is easier and safer. Check for yourself, with what financial aid suits you the best is essential and hence having complete knowledge of it concerning without falling into traps of fraudulents.
Read More: Steps For Loan Against Property Easy Process
Half knowledge can indeed be dangerous when it comes to investing in big financial products truly, without actually investigating all the facts and myths behind them. Hence evaluating and trusting on experts advice, else researching it for yourself is the best option before investing your precious time and money into anything, and for that matter, seeking LAPs too.