When you’re in need of financial aid for big-ticket business or personal expenses, a loan against property can help you secure the funding you need. Also known as a mortgage loan, a loan against property is a secured loan that is availed by pledging one’s property as collateral. Whether you’re mortgaging a residential property or applying for a loan against industrial property, you must meet the loan against property eligibility criteria and submit the documents required by your lender to prove your eligibility.
To ensure that you qualify for the loan amount that you require and get the best deal from your lender, make sure that you are well aware of the loan’s eligibility guidelines. Read on to learn more about what they are.
In order to meet the loan against property eligibility criteria, it is crucial that the mortgage property titles are free of any litigation. Other factors such as the property’s age, location, size, and condition also affect the loan amount that is sanctioned to you. The land on which the property stands must also be legally approved by the local administrative system for the financial institution to consider it as collateral. You can also pledge a piece of land with no construction on it as collateral and apply for a loan on land property as long as the land is not embroiled in any legal dispute.
To ensure faster approval and processing of the loan, you should have the necessary documents ready to submit. All the papers related to your property as well as your KYC documents such as identity proof, proof of residence, salary slips (for salaried employees) and bank statements must be in order before you begin your application process. Your property insurance must also be up to date. Documents with misspelt names are not considered authentic, so make sure that your name is spelt correctly and all other personal details are accurate and consistent across all the documents.
Your credit history is taken into account as assurance of your ability to pay off your financial liabilities on time. If you have defaulted on payments earlier, this will show up in your history and affect your overall credit rating. On the contrary, if you have paid all your dues such as EMIs on previous or existing loans on time, lenders are likely to offer a better loan against property interest rate. If your credit history is not up to the mark, it is recommended that you wait until you have rebuilt it and then apply for the loan against property.
Your credit score is the rating assigned to you by the credit bureaus on the basis of which banks and other financial institutions decide whether you are a reliable applicant for the loan against property. This is one of the primary factors that affect your eligibility and it is nearly impossible to find an attractive loan against property interest rate with a poor score.
Most institutions require a credit rating of at least 750 to approve a loan against property application. The factors that contribute to your credit score include the overall amount that you owe to lenders in the form of loans or outstanding credit card bills, the duration of your credit history, and your repayment history.
Steady stream of income
Whether you’re a salaried employee or a business owner, you must have a stable income to prove to the lender that you can repay your loan without defaulting. As a salaried employee, you must submit your salary slips as proof of your income stability. As a self-employed applicant, you must provide certified financial statements for the last three years to show that your business is not running at a loss.
In order to meet the loan against property eligibility criteria without any hassle, make sure that your finances are in good health and that your documents are accurate and up to date. Take the time to scout for a lender with lenient requirements and quick loan processing. An offering that meets this checklist is the Bajaj Housing Finance Limited Loan Against Property. Along with simple eligibility criteria that require minimal paperwork, it offers a competitive loan against property interest rate starting at just 6.95%*. To determine whether you qualify for the loan, use the eligibility calculator.
This high-value loan against property offers a convenient repayment tenor of up to 30 years that allows you to pay comfortably as per your capacity. To further plan your finances smoothly, you can use the online EMI calculator to compute your monthly loan repayment amount. You can also enjoy favourable rates for a balance transfer and easily qualify for a top-up loan if you need additional funds. To get started, all you have to do is apply online and submit basic documents related to your property and KYC.