The loan against property (LAP) is a unique facility that provides you with access to a higher amount of money at a lower interest rate. As the name suggests, the loan against property is offered when you pledge your property for an amount.
The loan against property is considered as a secured loan because you keep the property in the shape of collateral with a lender. As a result, you also get to enjoy a lower interest rate and pay only a smaller EMI over a longer tenor.
As per your loan against property eligibility, you can grab as higher as up to Rs.3.5 crore if you are self-employed. The loan amount goes up to Rs.1 crore for salaried professionals. Your income, repayment capacity, CIBIL Score and other factors also govern the loan against property eligibility.
If you want to know about some common loan against property eligibility and how to improve it for a higher loan amount, let this post know more.
Standard Loan Against Property Eligibility At A Glance
Here is some of the common loan against property eligibility terms that you need to fulfil to acquire the loan. Have a look:
Your age should be between 25-70 years
You should be an Indian citizen
You should either be a self-employed or a salaried professional with a regular source of income
You need to own property only in a city as pre-declared by a lender
The loan against property facility is available on properties owned only in such cities
Some Common Loan Against Property Documents
Some standard loan against property documents required is:
Latest Salary Slips
Last 3 months’ bank account statements
Documented proofs of the property that you wish to mortgage
Tips To Enhance Loan Against Property Eligibility For A Higher Amount
You may need to pledge your property for multiple needs. It may be an impending marriage, personal expenses, medical emergency and more. Hence, you may need a higher amount of money.
However, your current status may not let you borrow the desired amount. In the same context, here are some smart tips to help you improve the loan against property eligibility for availing a higher amount.
Maintain A Robust Employment History
Most of the lenders prefer only such LAP applicants with a consistent employment history. Hence, you need to ensure that you don’t switch jobs for the sake of enjoying some increase in your salary. Anything with 3 years+ professional experience will help you get the required loan amount.
Maintain Strong Repayment History
You should also ensure that you are not at all a defaulter when it comes to repaying your existing loan EMIs and credit card outstanding by the due date. A lender wants to check how responsible you are at repayment. Based on your repayment records, you can get a desired loan amount.
Get The Property Valuation Done
You won’t get the entire value of your property as the LAP amount as only a percentage of it is allowed. Hence, it’s better to get the property valuation done in time to determine how much you will get. Also, always know that your home will be evaluated based on its current price, and not as per its original purchasing price.
Your Credit Score
Your Credit Score is a mirror of your creditworthiness. Anything reading above 750 out of 900 will help you get a higher value loan at a lower interest rate.
Some of the loan against property eligibility parameters and tips to enhance your loan limit is now discussed. If you need to apply for LAP, it will help you enhance your eligibility for a higher loan amount as per your needs. To unlock your customized pre-approved loan offers, you can provide your basic details such as name and mobile number.
Bajaj Finserv presents some affordable pre-approved deals on loan against property, home loans, EMI finance, and personal loans and more. You can go through them and ease off your loan application and processing time and efforts.
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