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WHAT MEASURES WILL AFFECT THE LOAN AGAINST PROPERTY ELIGIBILITY?

Nowadays, borrowing has become an inseparable part of every individual’s life. Sometimes it’s very common when your life milestones are apart because of insufficient funds. Whenever you decide to take a crucial step in your life, funds become the most important requirement of the time. Most of the time, we fall in shortage of cash and to overcome the crisis, we need to borrow. A debt in life has become the new normal for today’s generation.

There are number of ways to borrow funds during needs. Among all the sources present in market for borrowing "Loan against Property" is one of the best options as it has much lower interest rate than that of other unsecured loans. To avail this loan, ensure you have a legal property registered in your name but that’s not only the criteria as there are some other eligibility criteria which need to be fulfilled. Here, we will learn about some measures which may affect your eligibility.

CIBIL Score: The credit score is the key factor to evaluate the eligibility for an unsecured loan. However, while granting the secured loans, lenders too check the credit score. A CIBIL score is a numeric expression to verify the repayment history of loan seeker because the creditworthiness of any borrower depends upon the previous records of loan repayment.

Income Source: The income source of potential loan seeker is evaluated to ensure the regular payment of monthly installments. However, you own a property having high value, if the lender is not satisfied from the source of your income; you may not get the loan against that property.

Property Papers: When it comes to mortgaging your property, you property should be free from any legal issue. The property documents are the main thing to be checked by the lender. If your property title is under any legal dispute, the chances of your rejection of loan get increases. The lender may ask you the full set of property papers such as title deeds, building plans and other required documents.

Tenure: It is not possible to get the desired tenure because if you want to have a short repayment period, then your EMI amount will be higher and vice versa. Before you "Apply For Loan against Property" you should check your EMI using loan EMI calculator. If your income is low and you also want a short tenure then your loan application is likely to be rejected.

Property Insurance: Along with other criteria, the lenders may also check the insurance of the property. It is good to have a insurance of your property to make it eligible for a loan against property because it safeguard your financial interest as well as lender is saved from facing any default. 

A loan against property is a financial tool which is easier way to avail the loan but all those facilities come with risk on your property. If you secure the loan against property and pay it on time, you can enjoy the great benefits of owning a property besides living in it.


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