Increase Your Chances Of Getting An Approved Loan Against Property By Following These 10 Tips

Summary: Here is a concise guide in which you will learn about the top 10 ways to meet the eligibility criteria and increase your chances of getting a loan against property.

Facing major financial constraints in life? Or is there an upcoming wedding, business expansion deal, or a much-needed travel vacation ahead?

The best way to proceed with such financial needs is to apply for a Loan Against Property (LAP) from a reputable and credible financial organisation. 

With a loan against property (LAP), you can keep an owned property as collateral and receive a loan of up to 40-70% of its market value. Additionally, LAP interest rates are significantly lower than those of personal loans.

Unlike home loans, LAP funds can be used for any purpose without any restrictions. However, it is important to note that eligibility criteria must be met in order to apply for a loan against property.

To increase your chances of approval and ensure instant disbursal of funds, we have compiled a list of top ways to easily apply for your LAP.

10 Ways to Enhance Your Eligibility to Apply for a LAP Loan

Here are the top 10 tips for you to meet the eligibility criteria for a loan against property:

Increase your Credit Score

Your credit rating is the primary factor that affects your eligibility criteria for a loan against property. A high score is necessary to receive good offers and deals from loan providers.

It is important to keep a strict check on your credit report to ensure that there are no discrepancies. Avoid missing any repayments/EMIs, strive to remain debt-free, maintain a steady flow of income, and refrain from making too many credit or loan applications if you want to maintain a high credit score.

Polish Your Profile

Your loan against property eligibility depends on various factors, such as your age, address, monthly salary, work experience, documentation, educational qualifications, and property-related information.

To increase your chances of obtaining a loan against property, it is crucial to maintain a well-organised personal, financial, and professional profile. This will help lenders assess your ability to repay the loan and make a decision accordingly.

Work on your Financial Health

Keep your financial health in place and have your bank statement updated. Positive financial health will increase your chances of getting a LAP approved quickly.

Increase Sources of Income

The more income you have and the more sources of earnings you add to your profile, the better your chances of getting a loan against property at lower rates of interest.

This ensures your sound financial situation and helps LAP providers to trust you with a high loan amount.

Show Stability in Employment/Business

Having a steady employment or business profile, and a long and profitable tenure in the same source of earning, can increase your chances of obtaining a LAP loan.

Have a Solid Ready-Documentation

Ensure you have all your individual, employment-related, and property-related documents. Keep a file ready and submit the proof for verification and approval.

Be Debt-Free

This is one of the prime factors that have a solid impact on your credit rating and helps you get a LAP loan quickly.

Being debt free or settling your other outstanding loans can help you make room for your LAP EMI and improves your credit scoring.

Maintain a Regularity in Paying your Taxes

Keep your financial information, like salary statements, balance sheets, bank statements, and ITRs, in place.

If you are a responsible citizen, who has paid all required taxes consistently each year, you increase your chances of getting a LAP.

Keep your Property Insured

Having an insured property that can be used as collateral increases your chances of obtaining a loan against property from a financial organisation.

Insurance plays a critical role in mitigating the risk for both the lender and the borrower. It provides protection to the financial interests of both parties and assures the lender that in the event of any untoward incident, they will not suffer any significant losses.

Make Sure there are No Previous Loan Rejections

Any loan rejection, failure, application verification, missed EMI, or poor repayment can lead to a LAP rejection.

Ensure that you are free from such rejections to be eligible for a LAP.

Conclusion

These were the top recommendations from industry experts and professionals. You can follow these tips to improve your chances of getting approval for a loan against property.