Need a Big Loan? Here’s What You Should Know Before You Apply

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Need a Big Loan? Here’s What You Should Know Before You Apply

Sometimes, we face situations where regular loans just aren’t enough. Whether it’s buying your dream home, expanding your business, paying for higher education abroad, or handling a major medical emergency — you might need a high loan amount to make it happen. But getting a large loan comes with its own set of conditions and responsibilities. Here’s a simple guide to help you understand how high-value loans work and what you should consider before applying.

What is a High Loan Amount?

A high loan amount generally means a loan above ₹25 lakhs, though it can go up to several crores depending on the purpose and your eligibility. Banks and NBFCs offer high-value loans under different categories — home loans, personal loans, business loans, or even loans against property.

For example:

  • Home loans can go up to ₹5 crores or more.
  • Personal loans might reach ₹50 lakhs for eligible applicants.
  • Loans against property can also fetch you ₹1 crore or higher.

Who Can Get a High Loan?

Lenders usually approve big loans for people or businesses that show strong financial stability. Here are some of the key things they look at:

  • A good credit score (usually 700+)
  • A stable and high monthly income
  • Low existing debts or liabilities
  • Clean repayment history
  • Collateral (in case of secured loans like LAP)

Professionals like doctors, engineers, salaried employees in top companies, or well-established business owners are usually more likely to get approved.

Types of High-Value Loans

  1. Home Loans – For buying premium properties or real estate investments.
  2. Business Loans – To grow or expand your business operations.
  3. Loan Against Property – Use your property as security and get a high loan amount.
  4. Personal Loans – High-value personal loans for weddings, travel, or emergencies.
  5. Education Loans – For expensive courses, especially overseas education.

Benefits of Taking a High Loan Amount

  • Larger goals become achievable without using up your savings.
  • Longer repayment tenure, which makes EMIs manageable.
  • Lower interest rates, especially for secured loans.
  • You may also get tax benefits, like under Sections 80C or 80E, in case of home or education loans.

What to Be Careful About

  • Bigger EMIs: Make sure you calculate your EMI properly before taking the loan.
  • Interest costs: A bigger loan means you’ll end up paying more interest over time.
  • Hidden charges: Always check the processing fee, prepayment charges, and foreclosure conditions.
  • Credit score risk: If you miss even one EMI, it can seriously affect your credit history.

Final Words

Taking a high loan amount can be a great move if you’re financially ready for it. It can help you take big steps in life — like buying property, growing your business, or investing in your child’s future. But always remember: borrow only what you can comfortably repay. Don’t get carried away by what the bank offers — focus on what fits your budget. Do your homework, compare lenders, and read the fine print. With smart planning, a high loan can be a powerful financial tool for your future.

 

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