A loan against property is a multi-purpose credit instrument to meet one’s urgent needs. It can effectively finance medical costs, marriage and education. In addition, self-employed individuals, professionals or employees who own commercial or residential properties can easily avail this loan.
There are two types of car title loans online that you can request, including the first one is the single payment loan in which the borrower is required to refund in one installments and the second one is long-term installment loan.
How to avail a loan against property?
Individuals can go through the simple steps mentioned below to understand how to apply for a loan against property:
Step 1: Visit the official portal of the financial institution.
Step 2: In the loan application form, enter personal credentials such as name, contact details, address and date of birth.
Step 3: Provide income details so that the financier can choose the best offer based on your financial stability.
Step 4: Select the ‘Apply’ button and submit the filled-in form.
After that, an executive will contact you to explain the customised loan offer in detail. As such, the application procedure is straightforward and convenient. However, before availing an offer, individuals can also use an online loan against property EMI calculator to evaluate the accurate borrowing cost instantly.
Benefits of loan against property
Since individuals now know how to apply for loan against property, they can also learn about its key advantages from the following pointers:
- Sizeable loan amount
Selected financiers offer substantial loan amounts to both self-employed and salaried borrowers. One can effectively meet his/her high-end business-related or personal expenses through a loan against property.
- No limitations on end-use
Borrowers can utilise the loan amount for any of their vital needs. For instance, they can use it to finance business costs such as buying high-end machinery, upgrading equipment or buying office space.
- Flexible loan tenor
Some recognised financial institutions facilitate comfortable EMIs by way of a flexible repayment tenor, taking care of one’s affordability.
- Swift disbursal
One can get access to the borrowed sum within 3 days. Convenient terms and conditions and hassle-free online application procedure ensure quick approval and disbursal of funds.
- Top-up facility and balance transfer
A balance transfer facility enables borrowers to shift their outstanding loan amounts to another financier that offers more attractive interest rates. In this case, they can also opt for a high top-up amount to finance multiple expenses.
Eligibility criteria to avail a loan against property
The loan eligibility is based on whether an individual is a self-employed or a salaried applicant. A financier assesses one’s repayment potential through parameters such as credit history, fixed obligations and income. Individuals can go through the basic eligibility terms mentioned below.
- Nationality: Indian
- Work Profile: Self-employed applicants need to have steady sources of income from their businesses, while salaried applicants must be employed in public or private companies/multinational organisations.
- Age bracket: For self-employed: 25-70 years, for salaried: 23-62 years
- CIBIL score: 750 or more
Moving forward, individuals should not forget to check the listed locations of the selected lender before applying for a loan against property (LAP) online.
Leading financial institutions also extend several pre-approved offers to their customers. These pre-approved offers simplify and expedite the loaning procedure and are available on different credit instruments like loans against property, home loans, etc. Individuals can check their pre-approved offers by simply entering their names and contact information.
Besides knowing the eligibility criteria, individuals should also be aware of the appropriate documents they need to provide for hassle-free loan processing.
Documents required for a loan against property
Here are the relevant documents that one will require while availing a LAP in India.
- Income proof: Current ITR certificate, audited financial sheet, salary slips, encumbrance certificate
- Property documents: Sales deed, property tax receipts, registration certificate
- Address proof: Aadhaar card, passport, utility bills
- Identity proof: Driving licence, passport, PAN card
About encumbrance certificate
If an individual purchases a property by pledging it or by opting for a mortgage, the financier will include a charge to the property. It restricts him/her from selling the property till the full payment of the mortgage is made.
An encumbrance certificate refers to a legal document that functions as evidence of a property’s possession/free title. One will need this document while availing a LAP to ensure that the concerned property is free from any legal or economic liabilities.
With this, one can get a complete idea of how to apply for a loan against property and access features such as minimal paperwork, easy-to-meet terms and conditions, doorstep documentation and quick loan disbursal. Further, a strong credit profile can help to fetch more attractive interest rates.
