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Tata Capital > Blog > Loan on Property > Loan Against Property: Essential Tips to Enhance Your Eligibility

Loan on Property

Loan Against Property: Essential Tips to Enhance Your Eligibility

Loan Against Property: Essential Tips to Enhance Your Eligibility

A financial crunch can surprise you at moments when you are least prepared. It could be a sudden business requirement or an educational expense that needs to be paid out as soon as possible. During such situations, your goal should be to get access to funds quickly without relying on hefty interest payouts. 

This is when a loan against property emerges as a suitable choice. These are a special category of loans that allows you to get access to quick funds by using your property as collateral. Since these loans are secured, you can get funds at an interest rate much cheaper than a personal loan. 

However, most individuals are riddled with an interesting question– is it possible to take a loan against property without income? The answer to that question is yes, but there are some steps that you should undertake in order to avail of a loan without income proof. 

Keep reading as we answer this burning question by providing you with some essential tips that you can utilise to enhance your eligibility and secure a loan against property.  

Eligibility Criteria for a Loan Against Property

The basic eligibility criteria for a loan against property is as follows: 

Salaried Individuals:

1. Age: Minimum age of 23 years and a maximum age of 65 years or retirement age.  

2. Annual income: Minimum yearly income should be Rs. 2,40,000

3. Employment stability: Minimum job stability of 3 years is required

Self-employed Individuals: -

1. Age: Minimum age of 23 years and a maximum age of 70 years.  

2. Annual income: Minimum yearly income should be Rs. 2,50,000

3. Employment stability: Minimum job stability of 3 years is required

Is It Possible to Get a Loan Against Property with No Income Proof?

Although you are putting up your property as collateral, financial institutions usually ask for proof of income during the application process. The reason is that financial institutions want to ensure that you have an active source of income which can help you pay back the funds you are borrowing. 

However, if you are applying for a loan against property without ITR or any other form of income proof, it can raise some red flags for the lending institution. 

This does not mean you won’t be approved for a loan, but the process will become lengthy and demanding. Nevertheless, certain strategies will help you along the way and aid you in securing a loan against property.  

Strategies To Get a Loan Against Property Without Any Income Proof

The following are some strategies that you can utilise to obtain a loan against property without income proof: 

1. Healthy Credit Score

Your credit score plays a pivotal role in the loan application process as it shows your repayment history, and reflects your creditworthiness. 

If you have a good credit score, it helps convince the financial institution of your creditworthiness and ability to repay the loan. This will, in turn, enhance your eligibility prospects.

Hence, be sure to check your credit score before applying for a loan against property. If time permits, you can take some steps to improve your score by clearing outstanding debts as well.

2. Applying with a Co-Applicant

Another good way to enhance your eligibility is by applying for a loan along with a co-applicant. Including a co-applicant will make your application more favourable for the lender. This is because the responsibility of repaying the loan falls on two people instead of one. 

In case you falter in making timely repayments, the co-applicant will assume responsibility for it. Such an arrangement can instil confidence in your loan application, even helping you secure a larger loan amount at favourable terms. 

3. Speaking to the Relationship Manager

While it varies depending on the financial institution, most savings account holders are assigned a relationship manager. If you have access to such personnel, it would be wise to discuss your loan with them. 

You need to have transparency with the relationship manager and explain to them why you do not have access to income proof. In most cases, they will assist you with the application procedure and connect you with individuals who can help you out. 

4. Loan Amount and Tenure

Another way to secure a loan against property without income is by asking for a considerably smaller amount. A smaller loan amount equates to lesser risks for the financing institution. 

Similarly, a longer tenure can also enhance your eligibility. This is because a longer tenure translates to more affordable EMIs, which in turn can lower your risk of defaulting.

5. Previous Loan Applications

Your previous loan requests will also play a key role when you are securing a loan against property with no income proof. If you have multiple loan requests, along with rejections, it can raise red flags with the lenders. 

The reason is that multiple loan requests, within close intervals, give the financial institution the impression that you are bad at managing finances and spend your income quickly. On the other hand, if you reach out for loans occasionally, and maintain timely repayments, you will seem more creditworthy. This can significantly enhance your eligibility.

The Bottom Line

Securing a loan against property without income proof can be quite challenging. Financial institutions usually prefer applicants with a steady income before sanctioning loans. However, the tips mentioned in this article can help you tackle this predicament. If you have a healthy credit score, co-applicant, low loan rejections, and all property documents in order– you can enhance your eligibility significantly. 

Once you pass the eligibility criteria, your next step should be to look for an institution that offers the best loan against property interest rates such as Tata Capital. Offering loans against property at competitive interest rates, Tata Capital empowers you to finance your needs with minimal documentation.

Head on to our official website to calculate your requirements with our loan against property EMI calculator

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