Maybe you want to send your children to a foreign country for their education. Perhaps you must organise a wedding or need money to expand your business. Usually, a lot is going through your thoughts in these types of situations. The first concern is arranging the needed funds. There are a variety of inventive ways to arrange these funds. But a better and more independent option is to apply for loan against property. A property loan is exactly what its name suggests. It is a loan that is extended or backed by a mortgage on real estate.
You must be the owner of a property if you wish to take a loan against it. Preferably, it must be a self-occupied residential property. You may also obtain a loan against a piece of business property, such as a store or factory. But the majority of lenders prefer to offer mortgage loan against residential properties. You need to carefully understand each step of the application if you want your loan application to get approved in the first go.
A secured loan that is available to both salaried and self-employed borrowers is a loan against property. You can mortgage any residential or commercial property and apply for loan against property. You can use the borrowed money for various things, including paying for wedding expenditures, growing your business, and dealing with unexpected medical costs. If you desire to apply for a loan secured by the property, the following procedures should be followed to ensure a hassle-free borrowing process.
Things Need to Consider While Apply for A Loan Against Property
Conduct thorough research-
Loans secured by property are common products lenders offer. You should do extensive research before choosing a loan. Compare the appropriate additional fees from different lenders before agreeing to a loan. Additional fees, such as processing fees, statement charges, foreclosure charges, EMI bounce charges, etc., can create a huge difference in monetary transactions. You must try to get the lowest mortgage loan interest rate.
Find the maximum loan amount-
Find the largest loan amount you are eligible for once you have narrowed down your list of potential lenders. The maximum amount you can borrow varies between lenders and is based on the market value of your property.
Check the eligibility criteria-
Each lender has a unique qualifying requirement that you must meet. You must fall within a specified age range and be a resident of India who works either salaried or independently. Everyone must submit a few other documents along with the mortgage loan application. If you apply for loan you must need to submit your identification and address proof, a bank statement from the previous month, ownership documentation of the property, IT returns, etc.
Fill in the application form-
You can apply for mortgage loan online or offline. Online application is the best way to save time and effort. You must go to the closest branch of your lender with all the necessary paperwork if you want to apply in person. Fill out the online loan against property application form with the necessary documentation, and the lender will contact you.
Lenders like Bajaj Finserv evaluate the risk associated with lending after receiving the application form and all supporting documentation. They do this by looking at the market value of the asset that is mortgaged and the history of payments on existing debts. The applicant’s income, savings, and potential employment or business risks are also considered.
The loan amount is transferred into your account once they have completed the required evaluation. Processing your loan against a property request can take up to 72 hours for speedy disbursement of funds, this was the answer to how to get loan against property easily.
Eligibility criteria for loan against property:
For salaried and professional applicants-
- Nationality and citizenship- Candidates must be Indian citizens who currently reside in India and have a property in the country.
- Age- Candidates must be between the ages of 28 and 58.
- Employment record- Candidates must have worked for a public or private company or an MNC for at least three years.
For self-employed applicants-
- Nationality and citizenship- Candidates must be Indian citizens and have property around the locality of the lender.
- Age- Candidates must be between the ages of 25 and 70.
- Employment record- Candidates must have been operating their existing firm for at least five years.
Documents required for loan against property:
The documentation requirements are not burdensome to apply for mortgage loan online. You will require the following important documents when completing your paperwork. The loan money can be disbursed within 72 hours after the lender has verified the paperwork.
- Proof of residence and identity- Voter’s ID, Driving license, Passport, PAN card.
- Proof of income- IT returns, Bank account statements.
- Property-related documents- Title deed, buyer agreement, property tax receipts.
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