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HOW SOME FACTORS AFFECT THE LOAN AGAINST PROPERTY ELIGIBILITY

Posted on Monday October 12th, 2020

The major decisions in life like wedding, education and constructing a house etc. require a great deal of money. There are number of ways to fund these requirements and one of them is to get a loan against property which can be availed by mortgaging property. It is popular among borrowers due to its various benefits and easy processing. The fulfillment of certain criteria is required to be eligible for a loan. Let us examine how some factors affect the loan against property eligibility while borrowing.

→ Age of Applicant: It is one of the most basic eligibility criteria to consider while availing a loan as it determines your repayment capacity. If the applicant is above 60 years old or getting retired soon, the chances of rejection of the application increases. It is always advisable to go for shorter tenure or get co-applicant to avoid missing EMIs.

→ Employment: The professional status and job stability are the key factors for any individual to sanction a loan for all the lenders. The number of years, one is associated with the firm and the monthly salary is assessed to ascertain the borrower’s capability to pay back the loan. If you are prone to switching the jobs, it can leave a negative impact on your financial stability and the chances of approval get decreases.

→ Source of Regular Income: A stable and a sufficient source of income is the important criterion for a lender to sanction an application. The borrower should maintain a stable job or business to earn a stable income if he/she want to Apply For Loan against Property as it determines his/her ability to repay the loan. In case, if the loan EMI exceeds 60% of the monthly income of an applicant, the application gets rejected.

→ Credit Score: This score reflects how effectively a person has been paying his existing EMIs and credit card bills. Most of the lenders look at an applicant’s credit history before approving a loan. Any defaults on the existing loans or late bill payments are reflected in your credit report and can impact your loan application.

→ Slips of Income Tax Returns: However having a stable job and high monthly salary is good but insufficient ITRs can also lead to rejection of loan application. The slips of Past ITR for last 2-3 years ensure a steady flow of income and increase your chances of approval.

→ Property Papers: Either you Apply For Loan against Property Online or offline, the submitted property documents should needed to be authentic and valid. The basic property documents include registrations, building plans, permissions etc. If the property involves some legal turfs or the papers are not in proper order, the application is likely to get rejected.

If these following factors are taken care of and one respects the responsibilities associated with it, loan against property is one of the easiest option to tackle your financial needs. ShubhBank offers competitive rates of interest, flexible tenure, convenient EMI options, low processing fees and hassle free processing on loan against property.


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PROPERTY IS A HUGE ASSET

Posted on Monday March 26th, 2018

Owning a property is often the biggest dream and can be a huge asset to cater to demanding needs. LAP is one of the precise aspect of banking. Banks and finance companies offer the loan against property for either be a residential/commercial piece of land or building. So ShubhBank offers a secured loan where property acts as a security. In case of default the property used could be sold or auctioned to recover the loan amount. The basic criteria for the loan depends upon the profession of the borrower. The property should be feel from all legal tangles and should have clearly registered on the name of the applicant. The documents required for loan against property is valid proof of residence and identity. This loan can be availed for various purposes. It could be for medical need or any personal and professional need. We provide long tenure periods enabling the borrower get sufficient time to clear the loan with the attractive and lower interest rates as compared to the other “Loans with a Hassle Free Service“.