Getting loan against property has become easy since Ruloans has introduced its online application option. If you own a commercial or residential property in Mumbai, you can easily get a loan against property from any bank or NBFC of your choice. To get a loan against property in Mumbai, you should fit in the eligibility criteria and must have some other important things at your end. If you want quick funds for your urgent financial needs, we suggest you to know the following must haves’ to get a loan against property in Mumbai.
Ownership of the property
Loan against property in Mumbai can be taken only if you own a piece of property in the city. Be it residential or commercial; a villa, apartment or a shop; a piece of property owned by you is eligible for the loan. The property ownership papers should clearly state your name as owner. If multiple people own the property, they can apply for loan against property in Mumbai as co-applicants. If you do not have a property registered in your name, you can’t get a loan against property in Mumbai.
Value of property to be mortgaged
Along with the loan applicant’s eligibility, banks and NBFCs also check the property’s eligibility. The property which is being kept as mortgage should be not much older, should be in current use and should not be under any legal conflict. The amount of loan to be approved is decided upon the value of the property. Banks and NBFCs approve 60% to 70% of loan amount as per the current market value of the property to be kept as mortgage. Thus you should first know the value of your property and then proceed to apply for loan.
Know your credit score
To get a loan against property in Mumbai you should have a strong credit score. Your credit score is dependent upon your finance history, profession and income. Banks and NBFCs give loan against property in Mumbai if you have a minimum credit score of 750.
Loan processing fees
Loan against property in Mumbai comes quick if you apply online. But whether you apply for it online or offline, banks and NBFCs charge basic processing fees. These fees ranges from 1% to 2% of total loan amount approved. So know how much processing fees your lender will be charging you and apply for the loan amount accordingly.
Loan repayment ability
Loan repayment is an important component of any loan. Banks and NBFCs check the loan applicant’s repayment ability before approving the loan against property in Mumbai. This loan repayment ability depends upon how much you earn your financial history and your profession. So do check whether you can really afford to back your loan against property on time or not before applying for it.
Now that you know all the must have’s before applying for the loan against property in Mumbai, make sure to check your eligibility for the same.