Life presents a series of challenges for everyone to overcome. There’re some that you can take on boldly with the help of your family, colleagues, and friends. But then, there are those situations that call for a loan. Your reason for financial assistance could be for your child’s higher education, home renovation, wedding, or a medical emergency. It could also be to expand your business. Surprisingly, the solution to your financial problem lies in your property. Taking a loan against property is your best answer. After all, you needn’t have to sell your property for the loan.
So, who all are eligible to seek a loan against property? Salaried employees and self-employed, who own residential properties in their name. Businessmen who own commercial properties can avail of a loan on commercial property.
Rest assured, a loan against property is a secured loan, and it’s easy to avail. It is also synonymous with lower interest rates, making it a popular choice.
Nowadays, availing a loan against property is quite an easy process, due to online documentation processes. Both banks and NBFCs offer these services. The challenge lies in availing the right amount of loan at the best interest rate with the least worries. This is where you are called upon to do a bit of research and compare all the available options.
An important step in this direction are the following vital points mentioned below:
7 key factors influencing loan against property eligibility
As with all loans, loan against property too is influenced by various factors. Outlined below are some of the factors influencing loan against property eligibility:
- Loan amount: It’s calculated by a combination of your required amount and the value of your property.
- CIBIL rating: If your CIBIL score is good, you become eligible for a loan against property. Different banks and financial institutions evaluate your eligibility based on ideal scores.
- Inadequate Property Documents: In case, all the property documents aren’t in place, especially for a loan on commercial property then it will affect your loan against property eligibility. Some of the crucial documents include title deeds, building plans, approvals from relevant authorities, registration, and more.
- Income: Your monthly earnings play an important role in deciding the repayment period of your loan against property.
- Income Tax Returns (ITR): The chances for approval increase when you’ve promptly filed ITR without any errors for the last three years.
- EMI: Ideally, long repayment period ensures that your lifestyle doesn’t get compromised because of the repayment of EMI.
- Age: The younger you are, the better your chances of receiving a loan against property quickly. For a loan on commercial property, a business vintage of more than three years is ideal.
Seek your loan from a name you can trust
Once you’ve made up your mind to put your financial worries to rest, approach any leading bank like SBI, HDFC, ICICI, Punjab National Bank among others. You can also opt for trusted NBFCs like Electronica Finance Limited (EFL), L&T Finance, Aditya Birla Finance to enjoy multiple benefits like quick approval for loan against property, affordability, and flexibility like easy repayment options. Also look for high loan amounts, lower interest rates, flexible loan tenures, a simple documentation process, speedy approvals, and transparent processing.
With your loan against property, see your business soar to great heights, ensure your child gains higher education, renovate your home, grandly conduct your child’s wedding or pay your hospital or medical bills without breaking into a sweat. Quickly avail of a loan against property today and make your life a great success.