6 Mistakes to Avoid While Taking A Loan Against Property


Loan Against Property is a secured mode of finance. It helps manage personal and business related financial emergencies. However, people often make a few mistakes while opting for one.


Here are six mistakes you should avoid while taking a LAP:

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It can directly affect EMIs if you jump upon the loan without analysis. It is important to compare interest rates of different lenders to get the best deal.

Not Comparing Interest Rates

LAP consists of a bigger amount; therefore, the processing fees can hurt your pocket. It is necessary to evaluate them.

Not Understanding Processing Fees

Choosing the optimum loan tenure plays a vital role in determining the EMIs. Always enquire about the tenure before moving forward.

Mistaking with the Tenure

Always check how much time the lender takes to disburse the amount. It should not take more than a few days.

Not Checking the Disbursal Time

Before opting for a LAP, analyse your other liabilities. Your debt-to-income ratio should not go beyond your control.

Not Evaluating Liabilities

Though this is the most important section, people often avoid reading it. It can cost you a heavy toll in the long run.

Skipping Terms and Conditions