A Loan Against Property allows the borrower to pledge their property as collateral with a lender such as a bank or an NBFC in order to obtain a large sum of money to cover any expenses such as debt consolidation, education fees, or property renovation. A Loan Against Property has recently gained popularity as a viable credit option that allows you to gather a large sum of money on short notice.
Although a Loan Against Property is a beneficial option, a lender requires you to meet the minimum property loan eligibility criteria in order to receive quick approval and disbursement of funds. This is significant because it allows both the borrower and the lender to assess borrowers loan repayment capacity. Here's everything you need to know about Loan Against Property eligibility criteria.
CIBIL Score
Your CIBIL score is important in your eligibility criteria because when you apply for a Loan Against Property, a lender will conduct a thorough background check to ensure that you are financially capable and will be able to repay the loan without difficulty. A CIBIL score greater than 750 will help you obtain favorable lending terms such as higher loan sanction, lower interest rates, longer tenors, and faster approval.
Borrowers Profile
Another important consideration is your profile, as the lender will require you to submit all of your information when applying for a Loan Against Property. Personal information, financial information, employment information, income tax information, and property information. To avoid complications, ensure that your records are clean.
Tenor Period
The tenor period you choose determines the EMI you will pay, and if you do not select the right tenor period based on your financial capacity, this can become quite problematic, and you may even lose your property. The lender will approve a Loan Against Property with a tenor that is more appropriate for your repayment capacity.
Co-Applicant
If you are unable to obtain approval for a Loan Against Property for whatever reason, you can always apply for a Loan Against Property with a co-applicant such as your spouse, parents, sibling, or even your children, provided they are of legal age and are earning members. Applying for a Loan Against Property with a co-applicant increases your eligibility.
Additional Sources of Income
When applying for a home loan, you must disclose all of your income details, and if you have any additional sources of income, you must disclose them as well. This will help you meet the eligibility criteria and may even benefit you in receiving preferable lending terms.
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