Sometimes, no matter how hard you try, you are unable to arrange for enough money to solve problems at hand. It is during these times that you generally feel the need for money and wish to opt for a loan against property. A loan has numerous applications- you can use it as a student loan, house loan, or a personal loan
What Is A Loan Against Property?
Loan against property is a secured loan that mortgages your property as security and provides you with the loan amount. You are required to pay off this loan, along with its interest in EMIs. However, the most important things that you need to look into are loan against property interest rate, property value, terms and conditions of the agreement, and the duration of repayment.
Are You Eligible For A Loan Against Your Residential Plot?
To apply for a loan against your residential property, you will first need a residential property that you can mortgage. You will also require to satisfy the following loan against property eligibility criteria:
- Application form with copies of your recent photograph
- An identity proof document
- An address proof document
- An age proof document
- Income proof document of at least 6 months
- Income tax return form and income tax return details
Procedure to Acquire a Loan Against Property
- Apply for the loan online through the lender’s website or visit their branch to apply offline by filling up an application form.
- Make sure to check the terms and conditions of the loan agreement, the tenure, and the loan against property interest rate.
- Submit relevant documents and wait for verification.
- After verification of the documents, an estimation of the loan amount, based on the property worth, will be decided.
- The loan amount will be awarded and disbursed to your account.
How Can You Secure a Loan Against Property Easily?
Loan against property may be a secure loan, but it is not feasible to grant a loan to everyone. A high credit score will ensure the lenders that you can repay the loan.
Adding A Co-applicant
If you have a co-applicant with a high credit score, and a steady income, the chances of acquiring loan against property are amplified.
High And Stable Income
If you have a steady and high income, it means that you have more money at the start of the month, and can easily pay off your EMI bills. Hence, the lenders become more eager to award you with the loan.
Relationship With Lender
If you have already applied for loans with the lender before and repaid them on time, the lender will have a high opinion of you in terms of loan repayment, which will help you to easily acquire a loan.
Debt To Income Ratio
The percentage of the income that you invest in debt is known as your debt to income ratio. Having a good debt to income ratio means that you take your payments seriously. Hence, lenders are more likely to grant you a loan against property at excellent interest rates.
Make sure to check the terms and conditions, the loan against property interest rates and eligibility when you are applying for the loan.