Certain events in life require you to spend a considerable amount of money. However, you may not always have that many funds. A loan against property is a great way to meet your financial requirements.
Do you wish to renovate your house or pursue your higher education? Well, you might have to undergo emergency surgery. Whatever the cause, a lap loan will help you raise the necessary funds.
However, you must know the loan against property eligibility criteria before applying. That will improve your chances of getting the loan approved. Let us take a look at the factors that can affect your eligibility.
Your Credit Score
It is one of the most vital factors that can decide your eligibility because your lender takes your credit score to measure your reliability and repayment capacity.
CIBL and other institutions calculate your credit score based on your credit history. So, it would help if you were regular with all your bill payments. In addition, having a good credit score will boost your credibility for the lender.
Yes, your age can play a crucial role in determining your lap loan eligibility. If you are younger, the chances of getting a loan are high.
However, if you are closer to your retirement, the bank might not consider your loan application. In that case, you need to take a loan of shorter tenure.
Your Income Source
You might be salaried or self-employed. That doesn’t matter. However, your lender will check if you have a regular and stable source of income.
Having a stable income source will lower the risk factor of your lender. In addition, it will tell them that you are capable of paying your EMIs.
Documents of Your Property
Well, the name makes it clear that you have to keep your property as collateral. So, the lender would check if you have all the necessary property documents.
So, make sure you have your title deed and other papers in place. Not having sufficient documents might lead to the rejection of your loan application.
Insurance of Your Property
Well, mortgage insurance will cover your loan repayment. So, it also reduces the risk of your lender. If you cannot repay the loan due to some unfortunate circumstances, your lender will have the guarantee of repayment from your insurance provider.
Inadequate Income Tax Returns
If you are self-employed, your lender might wish to see your ITRs for the past three years. So, make sure you file your income tax returns on time. If you have sufficient income but have inadequate ITRs, your lender might not accept your loan application.
Now that you know the factors that can affect your eligibility check the loan against the property interest rate offered by different lenders. Choose the lowest rate. That will reduce your financial burden.
Make sure you fulfill all the eligibility criteria before approaching your lender. PNB Housing provides loans against property at affordable rates/. Moreover, they require minimum paperwork and process your loan quite fast.