You may have availed a mortgage loan or a loan against property (LAP) from a reputed lender at an affordable interest rate. Things may have been going good, and you may be paying the EMIs on time.
However, the TV advertisement for availing a loan against property or mortgage loan at a much lower rate makes you angry and cheated. What would be your condition? Would you continue to pay a higher loan against property EMI or do something?
Thankfully, you don’t need to worry about being on a higher LAP as you can always go for the refinance facility. Opting for the LAP refinance will help you enjoy a lower loan against property interest rate. This way, you can pay lower EMIs and save money.
The refinancing of your LAP or mortgage loan means that you can switch your current your loan account from one lender to another. Yes, you can transfer the loan account from lender to lender to enjoy a lower property loan interest rates.
If you are unaware of the steps associated with the refinancing of the same, then this post will help you know more. Read on!
Follow these Steps do a LAP Transfer
1) Inform your Existing Lender
The first step in this regard is informing your current lender about your decision to switch your loan against property account. You should also provide the lender with a reason to do so.
2) Time for Negotiations
On knowing that you wish to switch, your current lender may negotiate with you to stay and offer a new interest rate. If you don’t think it’s promising as per the cost analysis earlier done by you, you should go for the transfer.
3) Ask for a NOC
You would need to submit a NOC to your new lender and seek it from your existing one. It will help you go through the application process smooth and hassle-free.
4) Arrange some Additional Documents
It’s time to ask your lender some extra documents such as the consent letter, and foreclosure letter. You also need to get the property documents and loan statements showcasing the EMI payments.
5) Cancel PDC Cheques and Payment Charges
Ensure that you take back your post dated cheques from the current lender. Also, you would need to pay some extra charges for foreclosing the LAP before time.
6) Pay off the Current Loan Against Property
You will then apply for the refinance of the loan against property account with a new lender and secure the approval. The new lender will pay off the rest amount to the existing lender.
7) Sign the Loan Agreement
After the new lender has repaid your LAP account, you can now sign a new mortgage loan or a loan against property agreement with the lender.
8) Enjoy the Lower Loan Against Property Interest Rate
That’s’ it! You now have the authority to enjoy a lower loan against property interest rate! You can do that after finishing off the subscription formalities of the refinancing.
The mortgage loan and loan against property or any loan that lets you refinance it and move to a lower rate is highly beneficial. It not only lets you move to a lower loan against property interest rate but even help you save money on EMIs.
If you are unaware of the charges and fees that a lender may ask for letting you refinance the LAP, you don’t need to worry at all. It is because you can easily use the mortgage calculator available for free on many lending websites.
Bajaj Finserv offers pre-approved offers on loan against property, business loans, personal loans, home loans and more. The purpose of this facility is to make your loan application and processing fast and hassle-free.
You can check out your pre-approved loan offers by sharing a few of your basic details such as name and mobile number.