Avoid a loan against property rejection by following these methods

 A loan against property (LAP) comes with no end-use restrictions, making it one of the best credit options for individuals in need of immediate funds. However, due to several reasons, one can face loan application rejection, such as-

1. Lower market value of the property 

2. Very odd property 

3. Poor CIBL score

4. Irregular source of income or no income proof.

5. Multiple loan rejections, etc.

Therefore, to avail the loan successfully, applicants must meet the set eligibility criteria.

Steps to avoid a loan against property rejection?

The eligibility parameters of a loan against property are easy to meet. However, applicants must take note of the following to avoid rejection-

1. Check CIBIL score – To take a loan, the most important factor is CIBIL score, which is assessed based on an individual’s credit history. One’s CIBL score should be more than or equal to 750 and not less than 600. 

2. Stability of income – A stable and regular source of income is important to avail a LAP. 

3. Documents required– Submitting all necessary documents, including KYC, payslip, last six-month bank statement, property registration papers, tax receipts, etc., helps get the earliest LAP approval. Failing to provide any relevant documents may lead to rejection.

4. Avoid multiple loan applications – One should not apply for loans with multiple banks. Any prior rejection may reduce your chances of securing a LAP.

5. Age bar – Applicant should meet the minimum and maximum age bar to successfully avail a loan against property. 

One may use a loan against property EMI calculator to know the exact EMI amount based on principal and tenor. In addition, an applicant can opt for a joint loan application by adding a co-applicant with a stable income and good credit score to avoid a loan against property rejection.