How to Enhance your Loan Against Property Eligibility in 5 Steps

With a loan against property, you can access substantial funds to pay for your child's education overseas, finance your child’s wedding, buy a second home, purchase an office space or even consolidate your debts. The nominal interest rate on this secured loan, compared to unsecured loans, make it an ideal financing solution during a cash crunch. However, in order to benefit from a loan against property, you have to meet certain eligibility criteria laid down by lenders.

The eligibility criteria differ from lender to lender and commonly revolve around your age, work experience, credit score, and other factors. It is also essential for the property you are pledging to be free of any litigation and legal issues. When you wish to avail a loan against property, you can evaluate your loan against property eligibility and work on the shortcomings, if any, before you apply.

Here are 5 clever steps in which you can enhance your loan against property eligibility.

1. Improve your Credit Score
The first thing lenders do on receiving your application is check your credit report and score. Normally, lenders sanction you a loan if you have a credit score of above 750. This not only enhances your eligibility, but also puts you in an advantageous position where you can avail the loan on favourable terms. Therefore, start by working on improving your credit score. If you find any discrepancies in the credit report, request the credit bureau to address the same.

You can improve your score by not making any frivolous loan applications before you apply for the loan against property, pay your EMIs on other loans on time, pay off all existing debt, if possible, and be diligent about your credit card repayment. Most importantly, since a loan against property involves a large sum, you can decrease your debt to income ratio. This boosts your credit score and improves your overall creditworthiness, as it represents that you can service your new EMIs with ease.

2. Declare your Income from all Sources
One of the grounds on which lenders assess your repayment capacity for this loan is how well you earn or what your income is. If you have a large recurring income, a lender is assured that you can repay your loan against property EMIs on time. If your regular income is low, make sure you disclose your additional income, which may be from a rented property, investments and others.

3. Choose a Longer Tenor
Though a longer tenor means a higher total interest that you pay, it results in lower EMI amounts. When you have a lower income and cannot service the loan quickly, choosing a longer tenor will help satisfy the lender of your repayment capacity. If, at any time, you experience a windfall gain or get a salary hike, you can go ahead and prepay the loan to reduce your overall interest obligation.
Also Read: 5 Golden Tips to Improvise your Loan Against Property Eligibility

4. Choose a Lender with easy Eligibility Criteria
Simple eligibility criteria is easier for you to meet and qualify for. So, one easy way to improve your eligibility is to choose a lender who has easier criteria. To enjoy simple eligibility criteria and minimal documentation, apply for a Loan Against Property in India with reputable lending institutions like Bajaj Finserv.

By availing a Bajaj Finserv’s Loan Against Property, you can unlock a significant loan amount at affordable interest rates and a flexible tenor. If you are salaried, you can avail a loan of up to Rs. 1 crore and repay it in 18 years. On the other hand, if you are self-employed, you can access an amount of Rs. 3.5 crore and repay it in up to 20 years. Once you submit all the right documents in a single go, your loan will be approved within 72 hours.

5. Pledge a Property of a High Value
Since your loan amount is related to the value of the property you pledge, you can increase your eligibility by pledging a property that is worth more. While you cannot change the value of property in the area where your property is located, you can repair any structural damage, get your property renovated or painted, add a garage or carry out other improvements to boost the property value.

By improving your loan against property eligibility, you are all set to apply for one and get fast approval from the lender. To enhance the speed of approval, keep the loan against property documents required handy, before you apply. This will enable you to apply instantly and hassle-free.

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