Are you soon going to apply for a loan against property or any other finance option? Other than various loan against property eligibility terms, you also need to take care of the loan tenure.
Yes, the tenure of the loan is an equally important loan against property eligibility term. It is because it can let you pay more or lower interest rate and have the obligation for long. Hence, it would be better to list out some points and perks of availing a short-term loan.
Here’s why you Should go for the Small Loan Tenure
Applying for a shorter loan against property tenure can work wonders for a prospective borrower in many ways. Here’s how:
The biggest advantage of having the shorter loan against property tenure is the speed. Yes, the rate at which you can repay the loan can easily save you thousands of rupees. You would have paid these on compounding interest for availing a longer tenure. Yes, opting for a shorter tenure may pressurize you a bit to put down a higher EMI, but it will ultimately help you save money.
You can Pay off your loan faster
The higher is your EMI, the faster will your loan close. Hence, you would be able to ease off the loan obligation quick. Therefore, it would also let you use the loan against property yet again for another loan. Nobody likes to have an obligation on his/her head for long and opting for a small tenure can easily serve the purpose.
You can Address other Needs in Life
Are you earning well enough and have a consistent employment history? Then, there is no need to have a longer loan obligation and pay extra interest amount as well. A smaller loan against property duration is apt for a salaried person. It is because a salaried person needs to do much in life and can’t wait for a loan to be paid in years.
What to do if you don’t Qualify for a Short Tenure?
Even though you may think of going for the smaller tenure for the loan against property, you may not go for it on your own. The lenders decide the tenure based on the overall loan against property eligibility. Hence, what will such borrowers do if they fail to get a smaller tenure? Nothing to worry, here is a solution that will help you!
All such borrowers unable to get a smaller tenure can opt for making some prepayments or even foreclose the loan before its stipulate tenure. When you make some advances, you end up reducing the loan principal and interest rate.
On the whole, you end up repaying the loan earlier and save lots of money. You can also foreclose the loan if you have the capacity to pay it off earlier than scheduled.
Most lenders do not charge any fine for making prepayments and foreclosing the loan against property before the tenure.
Bajaj Finserv offers pre-approved deals on loan against property, home loans, business loans, personal loans, EMI finance and a lot more. Such offers are designed to simplify the overall loan processes.
Additional Read: Factors for Low Interest Rate on Mortgages: LAP Tenure
You can explore your pre-approved loan offers by sharing a few of your basic details like name and mobile number.