Your personal assets generally form a source of income if you use it against meeting meet your emergency fund requirements though it is the only long-term revenue-generating option for you. What if you need funds at the current point of time. In such a case, you are just left with clearly two choices: to sell your valued possession or to mortgage it as collateral. To generate funds quickly and to keep the asset’s ownership of the asset to yourself; obviously, the loan against property is the best option to go for in such a situation.
Now that you understand the importance of loan against property. Here is how you can avail a loan against property:
Credit Score Evaluation:
The criteria of the judgment of your creditworthiness for financial institutions is your credit score. It makes lenders evaluate your financial status and repayment abilities. The best possible Credit score you can maintain generally is of 750 or more. A score above 750 means that you are a trustworthy and creditworthy candidate for the lending firm and increases your chances to get your loan approved. You need to meet minimum fixed CIBIL for the easiest approval of a loan against property. Thus, it is significant to maintain your score and make any necessary changes if required. this could be done easily by you by optimizing your credit score well in time.
Choose the best Financer for you:
To ensure making most of your loan against property, you need to make a wise decision while selecting a lender for you. this could help you reap additional benefits on your loan. For example, some of the good financing agencies providing loan against property not only gives you up to Rs.3.5 crore as a sanction but also allows you to benefit from the unique Flexi facility. Flexi loan facility makes your borrowing easy and convenient. this saves you from applying for a new loan each time you need the money, and the best part is that you get are only charged interest only on the amount you utilize use. Also, this loan has a quick disbursal time frame, and you can access the full amount within 4 days of approval. Loan against property tenor ranges up to 20 years, hence are really flexible when it comes to repayment.
Loan against property eligibility criteria of the lender must be obeyed: The eligibility criteria you need to fulfill to avail a Loan against property:
Before applying, it is crucial that you make it a point to qualify the eligibility criteria of the loan provider. Eligibility protocols are a must to follow by banks when it involves a huge sum of money. Commonly, you need to be a salaried individual aged between 25 and 58 years. A working individual at an MNC or public/private organization and own property in a city that is a part of approved locations considered by the lender. You are supposed to maintain a minimum annual income, but this amount differs from one city to another.
Checklist of the documents you must have:
There are certain documents that you need to submit while availing a loan against property. These ought to be accurate and up to date, as any mismatch will lead to slow down approval of the loan. The general document every lender asks for are:
- Identity proof: Aadhaar card, voter’s ID, PAN card or passport
- Address proof: Electricity bill or phone bill
- Income proof: Bank statement of salary account and 6 months’ salary slips
- Property ownership proof: Title deed, sale deed, and latest maintenance bills
Make sure to get the legal clearance of collateral:
Legal clearance holds much importance when you’re pledging your property as collateral. In case your property is under dispute, then it can lead to rejection. You need to be careful of this fact.
Loan against property application needs to be drafted:
As you are done with the above-stated process, you are ready to submit the loan against property application. While there are some financial institutions that make it more convenient to apply to file an application by making it available online, which makes the process easy and less time-consuming.