banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

Factors Affecting Loan Against Property Tenure

By IIFL Home Loans | Published On Feb 21 2018 5:15 PM 2 min read 45 views 3842 Likes
Factors affecting Loan against Property Tenure

If you are looking for ways to fund a new business or an extravagant family outing or need emergency funds, then you can approach a bank for loan. You can either ask bank for an unsecured loan with higher interest or go for secured loan by placing your home as a collateral. Unsecured loans have higher chances of getting rejected as compared to secured loans.

Borrowers can decide the loan tenure depending on their loan repayment capability. There are various factors which play a deciding role on your loan against property tenure. Here is a list of factors to consider before deciding on your loan against property tenure.

1. Home loan amount:

Usually, higher the loan amount, the longer will be the home loan tenure. This system is preferred by lenders and even suits borrowers in paying off the loan. This is because the amount of home loan gets spread out over a longer period thus it does not put excess pressure borrower monthly budget.

2. EMI:

If you choose to have a higher EMI, then you can close your loan at an earlier date. But, this can also be a strain on you if you don have regular sources of income. Therefore, it is important to find the right balance in your monthly installments. Ideally, your EMI amount should not exceed 40% of your home loan amount.

3. Loan interest rates:

This is a pretty straightforward situation that most people consider. If home loan instalment and income are close, then your interest rates will make a difference. Higher the interest rate, higher your payback will be. This means higher the interest rate your loan tenure will increase.

4. Age:

Your age plays a vital role in getting your loan approved by the lender. This is because lenders look for a person who has a regular and growing income rather than someone nearing their retirement. This is why lenders might refuse loans to older people or ask for higher EMI . This will affect your loan tenure.

E.g.: 30-year old will find it easier to choose their own tenure to repay the loan as compared to a 45-year old.

While it is advised to go for a short loan tenure you should make an informed decision for yourself. Check your monthly funds and affordability before deciding on the EMI which will, in turn, determine your tenure.


apply loan

Quick and Hassle Free Loan Processing

Latest Blogs

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Most Read Blogs

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.