Loan Against Property: What Determines Interest Rates?

As you consider a loan against property in 2024, it's important to understand the factors influencing interest rates. Here are the key determinants:

Credit Score: A higher credit score typically results in lower interest rates.
Loan-to-Value (LTV) Ratio: A lower LTV ratio may lead to better interest rates, as it shows less risk for lenders.
Type of Property: Residential properties often secure better rates than commercial properties.
Loan Tenure: Shorter loan tenures may come with lower interest rates.
Market Conditions: Economic factors and inflation rates can impact interest rates.
Income and Employment Stability: Consistent income and job stability contribute to favorable interest rates.
When looking for a loan against property, assess these factors to find the best rates. Compare options from multiple lenders to make an informed decision.

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