Applying for a loan against property/mortgage loan is very easy. There are so many lenders in the market offering very attractive mortgage loan interest rates to all people in India who need a huge amount. But it is not easy for the average customer to decide which bank to choose. It is also not easy to understand if they are loan ready or no.
Let us understand this case in the form of a dialogue between Mr. Amit Kumar and a Ruloans executive. Here’s how the conversation takes place;
Amit – Hi Team. I really need your help today.
Ruloans – Sure Sir, what is your problem?
Amit – My problem is with loan against property.
Ruloans – Okay Sir. Can you elaborate the problem?
Amit – Recently one of my friends got his loan application rejected. This got me thinking if I’m loan ready or no.
Ruloans – Yes Sir. Usually, there are few aspects you need to notice before you apply for a loan against property.
Amit – Is it? Alright.. Please tell me what are those things?
Ruloans – The first thing you need to notice is your PROPERTY VALUE and LOAN AMOUNT requirement. You need to remember that you will only get a certain percentage of your property value as loan amount (around 40-65%*). Hence for example, if you require 50 lakhs as loan amount but your property amount is of 50 lakhs, then it is impossible to get this full amount.
Amit – Okay. I get it. Thankfully my property value is high and my loan requirement is not a lot. So I guess I’m safe.
Ruloans – Yes Sir, it is very important that you get this calculated first.
Ruloans – The second thing you need to notice is “Income Status”. Since the loan amount is really huge, the bank will check your income status to understand if you can repay the whole loan amount without any defaults. Hence if your income level is low, the bank can give you a lower loan amount instead of a higher one.
Amit – Oh my god. I didn’t know that income stability would impact my loan amount. This is an eye opener.
Ruloans – Yes, Sir. But don’t you worry. There is a solution to this problem as well.
Amit – Really? Please tell me what it is.
Ruloans – Sure Sir. It also happens to be the third thing you need to notice i.e. “Co-applicant requirement”. In case your income level is not suitable to repay the loan amount, you can add a co-applicant. This will mean that both; you and the co-applicant’s income will be joined and then they will calculate if you can repay the whole amount or no.
Amit – A co-applicant? Alright. Means, I might be able to get a good loan amount with a co-applicant who has a decent income?
Ruloans – Yes Sir, that’s a possibility.
Amit – That is good news. Alright. What’s the fourth thing to notice?
Ruloans – The fourth aspect to notice is “Ownership”. If you are the sole owner, getting a LAP is easy. But if there are co-owners and they do not agree with your decision, then the loan can be rejected.
Amit – Okay. This is fine. This property is under me and my wife’s name. We both want the loan so there is no possibility of a dispute.
Ruloans – That is great Sir. There is one final aspect you need to notice a lot.
Amit – Wow, there’s one more? Yes, please tell me about it.
Ruloans – “Read your loan application carefully”. By this I mean, understand all the fees that are involved in your loan application; processing fees, taxes, pre payment charges, penalties etc. Understand the total amount you will have to pay and then only sign it.
Amit – Wow. I now can be clear before taking a mortgage loan. These 5 aspects will definitely help me get a loan without any problem. Thank you so much.
Ruloans – You are always welcome Sir.
So as we can see, just because the mortgage loan interest rates are attractive, you must not apply for a mortgage loan blindly. Check for these 5 aspects, understand your requirement, keep the loan against property documents required ready. This will help you get the loan application accepted quickly! In case you have any such requirement for a loan against property, Click Here