Loan against property is one of the most trending loans nowadays people are moving toward this loan and the personal loan is lacking due to high interest rate and a short repayment tenure. Loan against property offers less rate of interest which is easy to pay and also offers lots of repayment options without disturbing the monthly budget of the customer.
Before approving the loan against property the lender i'll check the value and the documentation of the property which you will put as a collateral to the lender.
What will happen when you are not able to repay the loan to the lender?
First of all the lender will consider you the defaulter in three to four month if you are not paying the EMI. Generally they will send you the reminder with a notice. Once the grace period is completed they will take legal action towards the customer. In the worst case the customer can lose their mortgage property
Loan payment Penalty: In this case the interest will automatically escalate which is called hefty penalty, This will increase the loan rate automatically.
Loan Sanction issues: Once you will become the defaulter then automatically your credit score will down and this will increase the loan sanction issue in future.
