In today’s time, the constant need for emergency cash is increasing. Having said that, these days, taking on debts is not a big deal anymore. Whether it’s buying a new home, renovation of an old one, or paying off the bills of a medical emergency, banking institutions are there to provide you quick financial assistance to ease out the situation. However, choosing between personal loan options can sometimes be a complicated and confusing task, since the interest rates of personal loans are similar and at times high too. There’s however an option for loan against property, where the loan is disbursed by the financial institution against a property pre-owned by the borrower. The rate of interest is favourable in this case, but there are certain factors affecting loan against property that must be kept in mind before applying for one.
Factors at play
- Current Employment status – Financial lenders look at your current employment status and salary to assess your capability to pay the monthly instalments. Another factor that is looked into is how long you have been working in your current organisation, as switching jobs rapidly may signify financial instability.
- Documentation of your leveraged property – It is almost certain that the first thing that financial lenders will check on before disbursing the loan is that whether you have proper documentation for the property, like permissions from local bodies, environmental clearances, building plans, etc. If there’s any legal loophole or any discrepancy with documentation, chances of you getting the loan are almost zero.
- Insurance of leveraged property – If the property you are leveraging against the loan is properly insured, it would work as an added advantage in your loan application. It would build up the trust level between the lender and the borrower since lenders have a higher degree of assurance of the property not becoming a non-performing asset in future.
- Credit score or CIBIL score of the borrower – All loans are granted after viewing your credit score, which will show how well you are paying your current loans and credit card dues. If you have a lot of outstanding dues, then lenders might be put off by your inability to pay back money in time and will probably not grant the loan.
- The regularity of income tax returns – You may be asked to file your income tax returns from the last few years to judge your loan against property eligibility; whether or not you had a steady flow of cash during that period. If the income tax documents are deemed flawed, the loan application may be rejected.
- Tenure for the loan – The loan against property application might get rejected if the tenure that you are looking for is comparatively shorter with respect to your average monthly income. Try to ensure that the tenure you are looking for is neither too low and nor too high, and is in sync with your monthly income.
- Age of the applicant- If you are already retired or nearing retirement, the loan application will likely get rejected. In such situations it is necessary to have a young earning co-applicant on board.
With Finserv Markets, applying for a loan against property is easy, quick and completely hassle-free. What’s more? The complete process is online and can be completed right from the comfort of your home. So why wait? Head over to our website and apply for a Bajaj Finserv loan against property with us, today!
Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!