When it comes to making big-ticket spends, you want to ensure that you’re employing the most pocket-friendly approach. This could include waiting for the time when the price is right, saving and investing until you have funds, or taking a cost-effective loan. When you need substantial funds, a loan may be the best approach as it allows you to pay in installments without depleting your future security. One loan that allows you to do this with ease is a loan against property.
Due to its secured nature, you can get an affordable interest rate on it and better yet not be constrained by any spending terms. This means that it can be used to fund anything from a wedding to education. However, before applying for a loan against property in India, you need to take appropriate measures to ensure that your application does not get rejected. This includes knowing and meeting the eligibility criteria. Here are the parameters by which your loan against property eligibility criteria is determined.
Age
Generally, lenders require you to be between 25 and 60 years of age to be eligible for this loan. As it is a long-term commitment, an older individual carries a higher risk quotient and so, some lenders may have the upper limit at 56 years Kara Mia.
Income
A factor that is crucial in gauging your eligibility for this loan is your income. The minimum annual income that will make you eligible for the loan varies across the lender and is in most cases dependent on the city you reside in. To give you the best chance, ensure that your debt-to-income ratio is below 20% because lenders are less likely to give loans to an individual who already has a lot of debt to service, especially since the loan amount for this loan is usually quite sizeable.
Property Value
Property value is an integral factor in a lender’s assessment of your application and allotment of the loan amount. The age of the property, the locality it is situated in, and its current condition are all factored into its market value and lenders perform their own evaluation to decide what the value is. Normally, if all goes well, you can get a sanction of up to 75% to 80% of your property’s value.
Credit history
As you are borrowing credit, every lender will check your credit history with due diligence to check whether you pose a risk or can be considered trustworthy. Depending on your credit score, you can negotiate for a better deal or access special loan offers. A good score of 750 or above can get you a better loan to value ratio, a nominal interest, and a tenor of your choice.
In addition to these factors, you’re also required to have the right documentation ready at hand. These documents are vital for the smooth processing of your application and the lack of these documents will deem you ineligible. Take a look at the loan against property documents required by most lenders.
Identity proof
This includes all your KYC/identification documents. Aadhaar card, Passport, Driver’s License, and Voter ID card are all acceptable for the application Kara Mia.
Proof of current residence
Residential proof documents include electric bills, water bills or landline bills. Any legal document that showcases the address of your residence is considered under this category.
Salary slips and bank statement of the past 6 months
In order to assure the lender of your repayment ability, you need to show consistent earnings and these must reflect in your bank statement. Additionally, your bank statement also indicates whether or not you can afford to meet the payments on time. So, income proof and bank statements will assure of a hassle-free sanction.
Form 16
This is a statement of the taxes deducted from your salary. It is issued by your employer and the amount is deposited with the government by your employer on your behalf. It is proof of your tax payments and also indicates if you have any unpaid tax.
Now you know how a loan against property is a great way to access a significant amount of funding affordable. That’s why, when choosing a lender, take the time to look for additional benefits as these add value to your borrowing experience, and some features can even save you money. A great option to consider is the Bajaj Finserv Loan Against Property.
You can get a loan of up to Rs.3.5 crore from this lender, which you can choose to repay through a tenor of 2 to 20 years. Additionally, you can use this loan to fund a cash crunch or an emergency as you get the full loan amount disbursed into your bank account within only 4 days of approval! To enjoy a hassle-free loan application and approval, check your pre-approved offer online by entering your name and phone number and access a deal customized for you.
