8 Factors that Can Influence Your Loan against Property!
Posted on 21 December, 2021 by Finway FSC
A loan against property is neither a personal loan nor a business loan. Banks, NBFCs, and many other financial institutions offer it, keeping your own house or any other commercial property as a mortgage. This mortgage loan against property offers you 60% of the total market value of your asset.
Every individual has to arrange money for their personal and professional needs. When the situation turns out terrible and you find no other option, a loan against property would be the better solution. However, it is not that easy to get a loan against property. Certain factors are affecting your eligibility criteria in availing of the loan. You need to mind all of them and ensure your application does not get rejected. Now, have a look at various factors influencing your loan against property.
- Applicant age: This acts as one of the most important factors in interpreting your repayment capacity. If you are a senior citizen or retired, it is better to bring a co-applicant for applying on board so that your application might not get rejected.
- Employment status: The lender would indeed check your employment status as you need to have a source of income so that they can trust you on lending a loan. If you don't have a regular source of income, there are high chances of your application getting rejected.
- Property documents: The primary thing a Bank does before lending a lap(loan against property) is to check all your documents and verify any legal issues related to your asset. The papers should have all necessary permissions from governance bodies.
- Property Age and Insurance: If yours is an ancient property, there could be structural collapse. The lenders will ask for property age details and investigate in detail. You can increase your probability of being eligible by having insurance for your asset. This is a crucial factor in providing a loan against property in delhi.
- Credit history: Your application will be approved only when you have a healthy and higher credit score. They will consider all your past repayment scores and reject if they find any defaults or delays in payments.
- Loan Tenure: It is good to apply for a longer tenure in the case of a mortgage loan against the property to increase your chances of successful repayments.
- Good profile: The lender sometimes may check your previous history of rejected applications and investigate more profound into the reasons for the same.
- Income Tax returns(ITR): ITR gives a clear picture of your income status. You need to have a consistent ITR filing for 3-4 years, increasing your chances of eligibility.
Conclusion
Most people opt for a loan against property in tough situations. So, you must maintain a very high profile and mind every factor. Even a small issue can affect your application as they check deeply while lending a loan against property in Delhi. Have a clear objective view of your profile and proceed further.