Loan Against Property (LAP) is a good financial tool to borrow a large amount of money by mortgaging your property. But, you can repay this loan without any hassle only when you plan smartly and have the right approach. Here are a few important tips to help you repay your loan against property with ease.
Create a Detailed Repayment Plan
One of the initial things that you will have to do when it comes to managing your LAP repayments is to formulate your repayment plan. You will start off by bringing together all your loan against property papers and figuring out the total loan amount that you took, the rate of interest at which you had taken up the loan against property and for what tenure you had taken up this loan. Thereafter, calculate how much you have to pay every month from your income in order to service this loan and see if you can spare that much money from your monthly type budget. This exercise would not only get you a clear cut picture about how much you need to pay every month but also help in making sure that the payment dues doesn’t get missed because of being unprepared or due to bad planning.
Set Up Automatic Payments
To make sure that you do not miss out any payment, you can also have an automatic payment setup from your bank account so that every month the EMI gets paid without fail and you are not charged for late fees or your credit score is not impacted. It also helps in keeping your personal finance simple and focus on other things in life.
Monitor Your Cash Flow
Keep a regular check on your cash flow to manage loan against property repayment better. Keep a track of the money you earn and spend so that you have enough funds left for making your EMI payment. In case you find any issues with your finance, resolve them immediately so as not to hamper your loan repayment.
Make Extra Payments When Possible
If you have surplus funds, consider making prepayments on your loan against property. This will help you reduce the principal amount and subsequently the interest payments. By following this strategy, not only can you reduce your loan tenure significantly, but also save on interest outgo over the tenor.
Refinance Your Loan if Needed
If you are struggling to manage your existing loan repayment, refinancing is a possible solution. Refinancing is essentially taking a new loan to pay off an existing loan, usually with better terms or a lower loan against property interest rate. This will help in reducing your monthly EMI and make it easier for you to repay. Make sure you compare offers from different lenders, including NBFC loan against property providers, to select the best refinancing option available.
Understand Loan Against Property Eligibility
Before you apply for a loan against property, it’s important to familiarise yourself with the loan against property eligibility criteria set by lenders. Generally, your eligibility is determined on the basis of your property’s value, your income and your credit score. Meeting these criteria will help you smoothen your application and get better terms.
Communicate with Your Lender
It is very important that you are in constant contact with your lender especially if you are faced with financial difficulties. Letting your lender know of your situation may work out in terms of a new deal or a temporary forbearance. Lenders appreciate borrowers that let them know their predicaments rather than one who simply defaults.
Utilize Financial Management Tools
Use financial management tools or apps to help you keep track of your loan repayments. These will allow you to set reminders, view your progress and get insights on your financial health. By staying organised with the help of these tools, you’ll simplify the repayment process and avoid being overwhelmed.
Final Words!
Repaying a loan against property requires careful planning and disciplined financial management. You can manage your repayments efficiently by creating a detailed repayment plan, setting up automatic payments, monitoring your cash flow, making extra payments, considering refinancing, and maintaining open communication with your lender.
If you want to know how to apply for loan against property or want to become Loan Against Property DSA Agent, Ruconnect App by Ruloans has easy registration process with multiple tools and support for your success. As Ruloans is India’s largest loan distributor we have 25000+ distribution partners network and great associations with over 265 private banks, PSU banks, NBFCs and financial companies.
Explore the opportunities with us and get benefited by partnering with India’s leading loan distribution company. For more details on managing your loan against property repayments or to become a Loan Against Property DSA Agent, please visit our website or contact us.
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