Many a time, we find ourselves under duress due to insufficiency of funds. Whether it is for a medical emergency or an investment, arranging a large sum of money in a short time can be quite tricky.
Are you facing a similar dilemma? Your property can help. Meet your financial needs by availing a loan against property.
A loan against property is a kind of secured loan where the money is borrowed, keeping your property as collateral. This property can either be residential or commercial, self-occupied or rented; it can also be an alternate property like residential plots, industrial property, etc. The pledged property will remain as collateral with the lender until the entire loan amount is repaid.
Here are the eligibility factors to consider when you apply fora loan against property.
A borrower’s age directly affects the tenure period and the amount of loan that can be credited. Also, determining the age bracket helps lenders in deciding the risks involved in case a borrower is nearing retirement age. Generally, the age bracket for availing a loan against property falls between 25 to 60 years.
This factor is used to ascertain a borrower’s capability of repaying their monthly instalments. Borrowers who have regular and stable sources of income are the ones with an advantage since it shows a higher ability for loan repayment. Therefore, it is ideal for a potential borrower to show an income of at least Rs. 2,40,000 per annum before applying for a loan against property.
Additional Read:- Factors That Decide Your Loan Against Property Interest Rates
Borrowers with a stable job have a higher chance of availing a loan against property. Since they receive regular incomes, paying off the stipulated EMIs will be easy. This assurance enhances their chances of loan approval. So, if you have a stable job for the last three years, the chances of getting a loan against property are high.
A good credit score is one of the most significant parameters with which lenders assess a borrower. CIBIL scores are representative of borrower’s capability to service a loan. Most lending institutions look for a credit score of 750 in borrowers applying for a loan against property.
When lenders evaluate your CIBIL report, they also check details regarding existing loans and repayment history. Ensure that you prepay any existing debts before you apply for loan against property. Early closure of existing loans will also help you get a higher credit score and increase your chances of loan approval.
The property you choose as collateral will affect the amount of loan you are eligible to borrow. Lenders will inspect property documents and base its value against the prices prevalent in the market. Simply put, an amount for a loan against property will be credited, depending on the valued property.
In case of a cash crunch, you should consider getting a loan against property. It can be beneficial in funding your financial needs, especially if the amount required is substantial. Moreover, interest rates for this type of loan also tend to be lower.
Additional Read:- Difference Between Home Loan and Loan Against Property
Are you looking for an instant loan against property? We can help. Get in touch with us today to learn more about availing a loan against property at competitive ROIs with minimal documentation.