In India, there are multiple reasons why people opt for a loan. Some of these reasons would require a huge loan amount like higher education abroad or for medical emergencies where the amount required is high. In such times, a personal loan along with your savings might not be able to fulfill your requirement.
The best solution in these times is a Loan against property. Also termed as a mortgage loan or property loan in America & various European countries, a loan against property is simply a loan given by Banks and NBFCs to any person who owns a property.
Is there any loan against property eligibility?
Yes, but this eligibility is almost similar to every loan type. Banks and NBFCs will look into your;
- Credit score
- Income History
- Credit Report
- Monthly Salary/ Business returns for self-employed professionals
- Property papers
On the basis of these criteria, the Bank will define the interest rate and loan amount that can be given to you.
What is Loan Against Property Unavoidable Requisites?
There are 4 unavoidable requisites if you wish to apply for a loan against property.
- Age – The applicant must be a minimum of 18 years old. However, there are some lenders that ask for minimum age between 21-25 at least. If you are a minor, you cannot apply for a loan against property.
- Income history – Your income history along with credit history will determine if you will get the loan against property. If the Bank is not sure that you will be able to repay the loan amount without defaulting, there is a high chance your application will be rejected. Hence maintain a decent credit score and stable income history.
- Property ownership – You must be the owner or co-owner of the property in order to apply for a loan against property. You cannot stay in a rented apartment and apply for a loan against that property. You must be the true owner.
- Property documents – If you don’t have the property papers in full, it might affect your chances to get the loan against property. Hence please ensure that you have all the necessary papers.
If you need a huge loan amount and are looking for the best loan against property in India, visit the Ruloans website and get the best deals. Apply today!