Doesn’t matter your financial situation, money needs could knock on your door at any time. From the renovation of your house to your child’s education, needs are plenty and more often than not, people rightly trust banks for borrowing money. For this purpose, getting a loan is often preferred due to lower interest rates.
Although for some people, eligibility could become a barrier when they try to get a loan against a property. But fret not; let’s take a look at some of the factors that can improve your loan against property eligibility.
- Maintain a healthy credit score
Your credit score has a vital role in deciding your loan against property eligibility. A credit report will show your capacity to repay, repayment history and the total debts you have right now. Lenders use this information to see whether you are eligible for a loan. In addition, your loan against property interest rate is dependent on the credit score. A higher score shows good credit confidence and lenders may offer a lesser interest rate.
- Add a co-applicant
Your eligibly in any loan is decided based on your ability to repay the same. Here, adding a co-applicant while you apply for a loan against property could enhance your eligibility, as there will be two people who are liable to pay back. The co-applicant could be anyone you trust, like your spouse or parents and adding someone with a good credit history can further increase the chances.
- Choose a longer tenure
Lenders will also look at your income and see if you are able to afford the loan EMIs. If you think your income will hamper your chances, you could try choosing a longer tenure for your loan. This can help decrease the monthly EMI, increasing your chances. Do keep in mind that longer tenures mean increase in interest outgo. Here, the choice should be based on what you can afford and what can increase your eligibility.
Have all the documents ready and up to date to make sure there are no hiccups during the process. This includes your Aadhar card, PAN card, income documents including salary slips, copy of IT returns, bank statements etc.
Now, it is time to apply for a loan against property. You can apply for a loan against property online and the bank executives will follow up and help you with the necessary steps. The important thing here is to consider other plans and understand the numbers related to your loan completely. A loan against property EMI calculator can help you with this. By considering your needs, it can show you the EMIs you will have to pay for different tenures. Make sure you follow the above pointers to make your application for a loan against property easy and hassle-free.