Skip to main content

HOW TO AVOID REJECTION IN LOAN AGAINST PROPERTY?

 


Loan against property is one of the common mortgage loans due to its features like low rate of interest, faster approval, longer tenure and maximum loan quantum. Nowadays, more and more people are opting for this loan as many leading financial institutions are offering exciting and flexible loan terms. It is extremely easy to apply for "Loan against Property" as one can take it for commercial as well as residential property. However, it is easy to secure but still your application can get rejected. So get prepared with such reasons to which your application get rejected and what you can do to avoid it.

Review your Documents: It is very important to have a right set of documents to get your loan passed. One has to submit their KYC details along with the bank statements, income proof etc. for the loan. The property to be pledged should be clearly in your name and you should also have a plan copy of your property. If any of these documents are illegal then your application will be rejected immediately.

Professional Stability: One should have a stable income whether you are self-employed or salaried to repay your loan against property. If you have switched too many jobs or faced losses in your business, your loan application gets rejected. Therefore, make sure that you have been in your current position for at least two years or gained a measurable profit in your business. 

Poor Credit Score: Every lender is very specific when it comes to credit score. One needs to have a strong credit score to approve your loan application but if you have a poor score due to default on existing loans or credit card bill payments, your loan application will get rejected. Therefore, build a good credit score and then "Apply For Loan against Property".

Multiple Debts: Having existing loans and outstanding payments can burden your monthly financial budget. If you have multiple debts then financial institutions get a perception that you are under lot of financial debt and lending you additionally may lead you to land up in a defaulter’s list. It is advisable to consolidate your debts first, and then apply for another loan.

Loan Default: If you have taken a loan before and haven’t paid it back then it can have a bad impression on your financial history. This gives a sense to the lender that borrower is not trust-worthy and won’t be able to pay back the loan. You can avoid this by paying off your debt on time and plan your finances to avoid any late payment.

Property with Legal Disputes: Every lender check the property’s eligibility along with applicant’s eligibility. If your property is going through any legal dispute, your loan application might get rejected. Moreover, if your property has been declared as illegal by local administrative body, it reflects negatively on your loan application. So we suggest every potential borrower to clear their property from any legal dispute to avoid any rejection in loan against property.

Comments

Popular posts from this blog

HOW SHUBHBANK IS BEST FOR BUSINESS LOAN

In India, being a developing country every year many start-ups are launched and operated successfully. There are really a great number of young people who come up with an excellent business ideas every year. But most of businesses fail and the main reason behind it is the lack of funding. Nowadays, banks and other financial institutions become more stringent in the eligibility criteria to sanction a business loan. And to " Make Your Business Loan Successful "  you need to provide a stack of documents to the lender. Then the lender verifies your documents and takes 30 to 40 days to disburse the loan. So the parallel way of business funding is ShubhBank. Our aim is at funding your dying business but our way of functioning is different from other traditional lenders. We provide easy business loans for small and medium-scale enterprises with progressive vision. ShubhBank have different process of gauging the loan eligibility than traditional banks and financing compa

WHAT THINGS TO CONSIDER BEFORE CO-SIGNING A LOAN?

Nowadays, it is very common to co-sign a loan with your spouse or dear one to fulfill their eligibility requirement but co-signing a loan agreement means promising a lender to pay off other’s debt if the borrower defaults on loan. Therefore, it reflects that borrower is a high risk candidate and lender demands to know that if he/she can’t repay the loan, you will step in and make the repayments. Thus co-signing a loan will not only help the applicant to secure a loan but also help them to enjoy the perk of lower interest rates and processing fees. You should always keep in mind to consider few things before co-signing a loan that how they can affect you in a long run. Impact on credit score: Suppose you have co-signed a loan and that loan is still outstanding and you need to " Apply For Loan " for yourself but you might find that your loan application get rejected as your credit score is low because the co-signing information gets updated on the credit reports of both candi

WHAT THINGS TO KNOW ABOUT MACHINERY LOAN?

  For a small business, machinery and equipment are the heart of operations especially in manufacturing and production units. Therefore, to increase and maintain the production capacity of any business, older equipment and machinery need to be upgraded periodically. Sometimes an increase in production demand requires the purchase of new machines and gadgets. A " Machinery Loan " is the convenient option to ensure timely purchase and up gradation of old machines. When you are looking for a machine loan to grow your business, many questions arise in your mind like how to avail a machine loan, what would be the criteria of financial institutions to fund the loan, how much time it will take for disbursal and what benefits it will offer to you? Here in this article, we tried to provide you with all solutions that where to approach for loan and pre-requisites are there to avail a machinery loan. First, we will talk about the entities to approach for securing a machinery loan. Bank