Key Things to Remember Before Taking a Loan Against Property
                     Hero FinCorp 2023 March 24
KEY THINGS TO REMEMBER 
BEFORE TAKING A LOAN 
AGAINST PROPERTY
Property 
Valuation
The loan amount you can get usually depends 
on the market value of the property being 
offered as collateral. A valuer appointed by the 
lender will assess the property’s market value. 
The valuer will provide a valuation report to the 
lender, including details such as the property’s 
location, size, condition, amenities, and market 
value. Ensure the property is valued correctly as 
the loan amount may be eligible for a loan 
against property tax benefits under Sec 24B 8
and Sec 37(1) of the Income Tax Act.
Interest 
Loan against property interest rates are 
generally lower tRhan Persotnale Loans rates but 
higher than home loan rates. The interest rates 
can vary depending on several factors, such as 
the loan amount, loan tenure, borrower’s credit 
score, property value, and the lender’s policies.
Generally, loan against property interest rates 
can range from 8% to 14% per annum. Check 
with your lender for the interest rates and other 
terms and conditions. You can even use a 
loan against property calculator to find your 
EMIs for different interest rates.
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Loan Tenure
The loan tenure for a loan against property can 
vary according to the lender and the borrower’s 
profile. Generally, the tenure for such loans can 
be up to 10 years or more. The tenure for a loan 
against property affects the monthly EMI 
amount. A longer tenure may result in a lower 
EMI. But it also means that the borrower will 
pay more interest over the loan’s tenure.
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Repayment 
Options
Check with the lender about repayment options 
such as prepayment, part-payment, and 
foreclosure. You can make EMI-based 
repayment. Here the borrower pays a fixed EMI 
every month until the loan is fully repaid. The 
EMI amount is calculated based on the loan 
amount, interest rate, and tenure.
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TEAM 2 Tim Matt Slyvia Mandy