Loan against property, popularly known as LAP is a type of secured mortgage loan. Many leading banks and NBFCs in India offer a quick loan against property for their customers. They have very specific eligibility criteria to approve a LAP application. Loan applicants follow through it but many times their applications get rejected. There are ways to avoid loan against property application rejection. But do you know that your property plays a major role in your loan approval? Know the reasons as how your property can get your loan against property application rejected…
Property too old
The banks and NBFCs consider the age of your property while approving the loan application. If your property is more than 20 years old, the loan application might get rejected. The older property carries lesser market value and involves more risk. Thus too old property can be a reason for your loan against property application rejection.
If your property is under any legal dispute, bank/NBFC won’t approve your LAP application. Be it a dispute with builder, government or family, disputed properties carry a lot of risk. Even if your property is illegal or stands on an illegal ground, your application will get rejected.
Property not in your name
When you apply for a loan against property, it is supposed to be in your name. As the property will serve as mortgage, it should legally be registered in the loan applicant’s name. If you apply for a loan against property and the property is not registered in your name, your LAP application will get rejected.
So now that you know how to avoid your loan against property application rejection, check your eligibility and apply for it here!