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Rules to Follow while Taking Loan Against Property

Loan Against Property (LAP) is a secured loan that can be availed to fulfil various financial requirements. It's the solution to all your financial issues in plain terms. It is a form of loan in which you can use the lender's collateral by holding your commercial/residential land. It is a smart decision to take a loan against property to tackle the scarcity of working capital, in the face of economic instability that causes fears of job and income loss. Without extinguishing all your money, this will help you survive the tough time.

Rules to Follow while taking Loan Against Property

  • Borrow based on your financial situation

Your EMI should ideally not surpass more than 50% of your monthly salary. If your EMIs consume too much of your money, it could affect your other important financial priorities, such as saving for retirement or the education of your children. Make sure that you're not making this mistake. Therefore, measure in depth using a Loan Against Property EMI Calculator before taking a loan to find out the monthly EMI that you will have to pay in the future.

  • Keep tenure as short as possible

An inverse relationship between tenure and EMI exists. The longer the term, the lower the EMI and vice-versa. However, in the case of a short loan term, it is often advisable that a person should take a loan for the shortest tenure, as the interest burden would be lower. Though it must be noted that shorter term loans invite higher EMI amounts, so you must plan your finances well accordingly.

  • Ensure timely and regular repayments

The most significant rule for taking out any loans is this. In addition to keeping your payments structured, being disciplined about regular payments would also save you from huge sums that would otherwise go out as a penalty or extra interest. In addition, your credit report indicates late payments if any, which decreases the chances of receiving a loan in the future. You must pay the EMI on time to prevent such awkward situations.


  • Avail insurance with big-ticket loans

You assume debt for the long term when you take advantage of a mortgage loan. To ensure that your family member does not suffer from any financial difficulties, it is recommended that you buy a term plan.

  • Don’t borrow to splurge or invest

It is one of the classic rules as well! Never use money borrowed in order to invest. Taking up debt has the greatest potential to pull you into a debt trap. There is volatility in high yielding investments, such as equities. Not only will you suffer losses, but you will also be strapped with an EMI if the things go wrong.

  • Read the fine print

To avoid nasty surprises in the future, it is vital to read the terms and conditions carefully. Additional fees may be available, which could increase the cost of your borrowing. It is therefore better to be informed than to regret it later. At Finserv MARKETS, however, we ensure that the customer comes first, as well as informing them beforehand about all the terms and conditions so that they would not be surprised in the future.

With smooth and transparent processing of loans at Finserv MARKETS, drop all your worries and apply for a Loan Against Property today.


Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.