Tips To Apply For Loan against Property

In this fast paced world, where almost everything is getting changed, possessing your own house or property is an essential requisite. Not only does your house help you to feel and stay rooted, giving you a certain sense of belongingness, but also assists you in times of need. Taking a certain amount of money as loan by pledging your house or property as a collateral is commonly known as loan against property. This kind of loan can be taken to meet any kind of financial requirement. Therefore, people opt for this financing option quite frequently. And why shouldn’t they? After all, it does come with a reasonable interest rate and other benefits and is a secured type of loan at the same time!

However, may people might not be aware of the mandates which have to be followed, in order to get the loan application approved. Besides this, the loan procedure may also seem to be a little confusing and complicated to the potential applicants. It is therefore recommended that you must conduct your own proper research and gain all the details on loan against property and its application process.

First and foremost, it is important for you to understand if you qualify to take loan against property or second mortgage. Here are the conditions which must be present in your case to apply for this kind of loan.

Appropriate Age

An individual who is applying for loan against property must be minimum 21 years of age. In practical life, people usually start earning from the age of 21. So, it might seem unrealistic and illogical that a person who is below 21 years of age will apply for a loan. But, in certain cases, if a property or a house is bought in the name of the individual by his or her parents, this possibility can arise. Therefore, take note that a person with inappropriate age as per the standard of the bank is not applicable.

Legal Ownership Of The Property

You must be the legal owner of the house or property against which you will be applying for a loan. Keep the papers of the property in place as you will be required to submit the same to the bank. Failure to submit your ownership proof will sabotage your chances of getting the loan against approved.

Adequate Income and Employment

The bank will cross check your financial condition, status of your monthly and annual income and employment status. If these details do not match up to the criteria of the bank, you are not eligible for loan against property.

Clean Credit History

If you have made payments on time, cleared credit card bills and other debts on time, your credit score will be considered good. Banks and other lenders take your credit history into consideration before sanctioning loan application. This gives an assurance of your credibility to the lenders.

Proper Documentation

Certain documents like your identity proof (pan card, passport, driving license etc.), residence proof, employment proof, photographs, proof of property ownership and others will be required by the bank at the time of loan application. So, in order to avoid last minute chaos, be smart and keep these documents in place.