5 factors that impact your loan against property - Loan Trivia


Full-Width Version (true/false)

Tuesday 5 October 2021

5 factors that impact your loan against property

loan against property eligibility

A loan against property is a convenient borrowing option that extends substantial funds with the flexibility of spending. Simple loan against property eligibility criteria and documentation requirements further make it compatible with individuals in urgent need of funds.

What are the factors that affect the LAP?

Here are some of the crucial factors which affect loan against property eligibility of an individual.

  1. Applicant's age

Lending institutions assess a borrower’s age before approving a credit application. Usually, young borrowers are prefered by lenders due to their workable years. This reassures them of the timely repayment. The age parameter on a LAP for salaried is 28 to 58 years and 25 to 70 years for self-employed.

  1. Borrower’s profile

An individual’s credit profile is the crucial factor that lenders scrutinise before loan approval. The lenders conduct a hard inquiry that assesses an individual’s repayment history, educational qualification, employment status, etc. Applicant’s with a stable employment profile and income can easily convince lender’s to levy an affordable interest rate. However, borrowers should be clear about the types of loan against property interest rates they should choose. 

  1. Income stability

A borrower with financial security and income stability reduces the risk of default in a lender’s eye. Moreover, maintaining a debt to income ratio of 40% or lower would substantiate eligibility. Individuals can also disclose their additional income to lenders for the said purpose. This would help them gain better service and nominal interest rate. 

However, if the repayment structure levied by a specific lender doesn’t satisfy the saving needs, one can opt for a loan against property balance transfer.

  1. CIBIL score

CIBIL score is again crucial in terms of loan against property eligibility. Individuals with a 750+ score are likely to receive better terms and quick loan approval. To improve this score, individuals can practice pre-payments, timely repayment, etc. 

Apart from following these factors, they can use a loan against property EMI calculator to compare the repayment structures offered by different lenders. 

These tips will aid in making an informed loan against property borrowing decisions.

No comments:

Post a Comment