4 Hacks to Improve Your Eligibility before Availing a Loan Against Property

One should always have goals to achieve, which is the only way of improving their standard of life. For instance, you might want to grow your business, move to a bigger house, send your kid abroad for their higher studies, or take any other decision to establish long-term growth. Now, these decisions might require a lot of financial power. If you are not comfortable with using your savings for such expenses, one solution is to apply for a loan against property. A loan against property is a secured loan that one can apply for by pledging collateral to the lender.

Most financial institutions offer up to 80% of the property value, so this can amount to quite a significant sum. For a loan against property, lenders usually offer a period of 15 years to repay. This makes it easier for borrowers to repay it in EMI payments. Now, before applying for the loan, it is very important to first be sure of your eligibility for a loan against property, as this is influential in the lender offering a good plan.

The good part is that there are a few ways in which borrowers can improve their eligibility. Take a look at 4 hacks that can help in boosting your eligibility for a loan against property:

1. Have a steady monthly income

No lender prefers a borrower who does not have a stable source of income. By working for a reputed organisation, having good job stability, and earning a steady monthly income, you effectively reduce the financial institution’s risk of approving your loan application. This is a great way of improving your loan against property eligibility.

2. Maintain a good credit record

No matter what type of loan a borrower is applying for, financial institutions always focus on their CIBIL records. Ideally, a borrower should always aim to maintain their credit score at 750 or more. This can improve their eligibility for a loan as well as get them better deals such as a higher loan amount and lower loan against property interest rate.

3. Avoid getting too many loan applications rejected

Submitting too many loan applications is never a good idea. Financial institutions can track the number of loan applications that were rejected, which can hamper their chances of loan approval. It is best to only apply for a loan after understanding the lender’s requirements. This will help in avoiding having to submit numerous loan applications.

4. Choose a suitable repayment tenure

While some borrowers prefer to choose a short repayment tenure to clear off the loan sooner, it is best to take a look at your budget before deciding on the repayment tenure. If you have existing debt and choose a short tenure, it might get difficult to handle another loan’s monthly instalments. Choosing a long repayment tenure can keep the EMI payments affordable, which can increase your loan against property eligibility. You can make use of a loan against property EMI calculator to find a suitable repayment tenure.

So, these are a few ways that can help in improving your loan against property eligibility. Also, make sure to check with the lender regarding the documents required for a loan against property. This will help ease the documentation process.