How To Avail Loan Against Property Acceptance In The First Attempt - Loan Trivia


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Friday 28 October 2022

How To Avail Loan Against Property Acceptance In The First Attempt

Loan Against Property eligibility

A loan against property is one of the most sorted options to avail substantial funding. As LAP is a secured loan, leading financial institutions provides ample benefits for borrowers. Besides this, individuals can use this loan amount to fund a legion of needs, from weddings to education and many more.   

However, to get approval in the first attempt for a credit against property, candidates have to meet a few parameters.

Know the parameters to meet to get a loan against property in the first attempt

The points to remember to secure a LAP in the first attempt are as follows – 

  1. Maintaining the CIBIL score

When it comes to acceptance of a loan against property application, the CIBIL score of a borrower is of primary importance. A CIBIL score of 750 and above shows a candidates creditworthiness and disciplinary nature. This increases the trustworthiness and lets a lender approve a loan application without fail. 

Therefore, if this credit report is not satisfactory, make sure to improve it by taking necessary measures. 

  1. Fulfil the loan eligibility criteria

A loan against property eligibility varies with lenders. Although the general guidelines remain the same, reviewing these pointers with a lender is essential. A few of the generic eligibility parameters are – 

  • The age limit should be between 25 to 70 years of age

  • Should have a steady source of income

  • The property must be located in one of the operating locations of your lender

In case one fails to meet these, make sure to take a note and improve it accordingly. To improve on this aspect, individuals can consider applying with a co-applicant. This will strengthen a LAP application and let an applicant negotiate a favourable interest rate. Moreover, borrowers can use a loan against property interest rate calculator to learn how change in interest rate can affect their total debt.

  1. Keep the documents handy

Similar to the eligibility guidelines, loan against property documents required are also variable. To avoid any hassle of rejection arranging them before applying is beneficial. The loan against property documents required includes KYC documents, property documents, income-related documents, etc. 

  1. Know about EMIs, LTV ratio and other charges

Before availing of a loan against property, knowing all the charges is essential. This will significantly ease the financial calculations for a prospective borrower and will decrease one’s chances of rejection.

Also, knowing all these charges and EMIs will help individuals to understand their monthly liabilities and ease this LAP availing process.  Hence, it is advisable to use a property loan EMI calculator for further assistance. 

Hence, it is essential to check these pointers mentioned above to get the loan against property approved at first chance.

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