Getting A Loan Against Property For Doctors? Choose The Best Interest Rate
Dr. Amita was an established gynaecologist. She started her first clinic three years back and never looked back. Her reputation grew and she started getting patients from far and wide. She was now looking to set up another clinic at a different location. However, she had one problem.
Though her practice was flourishing, she did not have enough finance to open another clinic. She kept delaying her expansion plans till she could save enough money for it. However, it wasn’t long until she found out about a Loan against Property for Doctors.
One of her colleagues had opted for this source of finance and advised her to look it up. She did. Here’s what Dr. Amrita found:
What is Loan Against Property?
Loan against Property is a loan which is granted against the mortgage of a property. The borrower is required to pledge his/her property as security. Lenders allow loans based on the value of the property pledged. Thus, a Loan against Property is a secured loan.
Dr. Amita compared the other sources of loan, viz. personal loan, professional loan and a business loan against a loan against property. She found that loan against property had lower interest rates and, thus, it scored over personal or professional loans. Do you know why?
Loan against property is a secured loan where the quantum of loan depends on the value of the mortgaged property. In case of a default, the lender can sell off the property and realize the outstanding amount of loan. This helps lower the interest rates. In the case of a personal loan, professional loans or business loans, no collateral security is required. As a result, the lenders face a very high probability of defaults and interest rates are higher.
Dr. Amita owned her residential home which could serve as collateral security for her loan against property. She, thus, promptly made a decision to borrow the loan. But, she did not know how to find the loan with the best interest rates. Do you know how? Let’s find out:
How to find out the best rate of interest for a loan against property?
Use an online calculator:
Lenders have gone online and are offering their loan products at the simple click of a mouse. Besides offering the loan products, lenders also allow an online calculator. The calculator offers a rate of interest section and also helps you to calculate the prospective EMI. Bajaj Finserv also has an online calculator which can be used to find out the rate of interest and the Equated Monthly Installment (EMI) payable.
Try negotiating with the lender:
Though lenders specify the rate of interest applicable for the loan against property, they might be open to negotiations. They have a minimum and maximum rate of interest. The rate of interest charged lies within the minimum and maximum limit. You can try to negotiate the rate of interest charged on your loan against property. The lender might even allow you a lower interest rate in some such situations.
Run an online comparison and get the best rates:
Did you know the online medium lets you compare the different available loans? Yes, you can not only compare the different loans online but also find the best rate of interest and apply for a loan against property. When you compare online, you can see the amount of loan offered and also the interest rate charged by different lenders for loan against property.
To sum it up:
Dr. Amita easily got a loan against property. The loan amount she availed was sufficient for her to lease a new clinic and the rate of interest was affordable. She applied for the loan online and the funds were transferred to her bank account in a very short time.
If you are also looking for a loan against property, ensure you follow this guide to find the best rate of interest.