Without any second guesses, securing finance against property has become one of the most common funding options today. These loans are high-value advances that require you to fulfil minimum eligibility and document requirements. Combined with easy online application process, simple documentation, quick approval and disbursal, loans against property are definitely one of the best funding options when it comes to availing secured advances.
Add to it the restriction-free end-use feature that allows you to address any financing need with the advance; loan against property sure is the futuristic financing option available for many today. Availing the funds, however, comes with the need to fulfill minimum eligibility requirements, which determine the risk associated with a borrower. Below are given some quick steps that can help you secure finance against property with ease.
Meet All Eligibility Requirements Laid Down By the Lender
Meeting all eligibility criteria specified by the lender depicts you as a suitable candidate for lending. It establishes your qualification as a borrower who can easily fulfil the repayment liability payable as EMIs throughout the loan tenure.
The standard eligibility requirements relate to the age of the candidate, income and residential status as well as stability. Make sure to check your qualification for the loan based on these parameters before applying. For a long-term advance like finance against property, it is ideal to avail funding early in your career than later, which should help secure favourable terms on the loan.
Apply for a Loan Amount Lower than Your Maximum Eligibility
Based on your eligibility fulfilment, you may qualify for a loan of a high amount. However, it is best to stick to a lower financing value when applying for the advance. This should elevate your repayment capacity and eligibility beyond the lender’s requirement, making you a strong contender for loan sanctioning and approval. Thus, in case you are eligible for a loan of say Rs.15 Lakh based on your eligibility and the market value of your property, you may well apply for Rs.12 lakh only.
Choose a Longer Tenure
Just like the loan amount selection, tenure selection is equally important in determining your loan eligibility as it directly impacts the EMIs payable, thus affecting your repayment liability. Opting for a tenure longer than your eligibility brings down the EMIs, thus reducing the overall monthly liability and improving your repayment capacity.
However, in the case of loan tenure extension, you also need to take care about the total interest liability as increasing the tenure will also lead to an increase in the interest payable, thus creating a higher loan repayment liability.
Provide all Documents of Income Sources
One of the best ways to avail finance against property easily is to back your application with all available income sources through necessary documentation. As the loan is a high-value financing option, it also results in higher EMIs, detesting the income and financial standing of the applicant.
Backing your application with documents related to all income sources depicts an increased repayment capacity, thus making you a reasonable candidate for loan against property. Apart from your regular income, be it through salary or business profit, you can document income sources like rent received on let-out property, interest income from investment, and the likes.
Pay Off Any Existing Liability
Before applying for your loan against property that should create a significant monthly liability on your income, it is wise to pay off any existing liability. With lump sum fund availability, you can thus repay any existing loans and advances of small amount. Doing so shall level up your financial standing, thus improving your chances of easy loan approval.
Maintain a High Credit Score
Apart from the ways mentioned above, you can also adopt financial habits and discipline that help keep your credit score high. Holding a credit score of more than 750 establishes your candidature as creditworthy, making it easier for lenders to approve your loan application. Some of the ways to improve your credit score are to make timely repayment of loans and bills, maintaining a debt to income ratio under 50%, utilising not more than 30% of the available credit, and the likes.
When sending your loan application, you can also add a co-signor with a high credit score and other eligibility fulfilment to elevate your overall eligibility for the advance. Planning before applying for finance against property allows you to secure the advance with much ease and at favourable terms as well as affordable rates.