Availing a loan against property is indeed an important decision in any one’s life. It is therefore mandatory that one think long and hard about the factors that influence the eligibility of loan against property. Some of the prominent factors affecting eligibility for loan against property are discussed below.

Top Factors that Affect Loan against Property Eligibility

Consistent Income

One of the most important pre-requisite for loan against property or any loan for that matter is the consistent income of the applicant. This is important because it is a guarantee that the applicant will be able to pay the EMIs on time. If you are someone who does not have a stable and consistent income then in all probability your loan applications stand a very high chance of getting rejected.         

Applicant’s Age

This is one of the important factors that play an important role in determining whether or not the lender will accept the plea. For instance, if the applicant is about to retire from the service in a couple of years then chances of his application being rejected are very high. On the other hand, an applicant in his 20’s, 30’s or 40’s stands a very good chance of availing the loan.

Credit History

The credit history of the applicant is also an important determining factor in his bid to avail the loan against property. Any glitch here will discourage the lender from accepting the application. It is therefore important that one clears his loan on time and honour his commitments so that his CIBIL score does not take a beating.

Loan Tenure

Loans with longer tenures have payments spread in longer duration which results in lower EMIs. If your income is low then it is always advisable that you opt for longer repayment tenures so that your monthly EMI is low and you are in a better position to pay them consistently and on time.  

Job Hopping

If you are someone who frequently switches job then the lender might not be too interested in sanctioning your loan application. A stable job and consistent income goes a long way in convincing the lender that the applicant will be able to repay his dues on time.

Property Documents

The property papers that you are mortgaging needs to be in order and complete. This might include title deeds, approvals from relevant authorities, building plans and other documents as required by the lender.

Rejection of Previous Loan Applications

Financial Institutions and credit intermediaries maintain a track of loan applications that have been rejected. If your loan application has been rejected earlier then it will appear in your credit profile check thereby hampering your chances of availing the loan. It must be understood that though it has become very easy and convenient to avail loan against property one should stay clear of temptations and should only opt for it in case of emergency.

Understand that in case one fails to pay the dues on time it will reflect very badly on one’s credit score thereby seriously hampering the future prospects.

Read About Things To Consider Before Taking Loan Against Property

Property Insurance

The mortgaged property must be insured as it is a perfect trust-building measure. Insured property develops a sense of security in the minds of the lender and increases the chances of loan sanction.

Income Tax Return (ITR)

Despite having a stable job and high package your loan application can be rejected for lack of ITR. A properly filled ITR of the last 3-4 years signifies a regular flow of income and brightens the chances of the loan being sanctioned.   

It will not be out of place to mention here that IndiakaLoan.com, one of the most trusted loan advisors in the country, goes a long way in assisting all its clients in availing loan against property from the country’s prominent lenders thereby helping them in arranging finance at a critical time in their lives.