It can appear preferable to take out a secured loan, such as a loan against property. However, having an asset won’t guarantee you a severe sanction on reasonable terms. Your ability to repay a loan secured by property will also depend on your credit history and behavior, income, and other considerations. Follow these top 4 suggestions for a hassle-free experience from application to disbursement.
Only choose a lender after performing a thorough comparison
Each lender has guidelines upon which they base the approval of a property loan. You must satisfy these eligibility requirements in order to be eligible for the loan. Additionally, you should evaluate the options of several lenders for a sanction that is affordable. You can accomplish this without affecting your credit score by using an EMI calculator or aggregator services online. When comparing, look for unstated terms and conditions and read customer testimonials. This will enable you to choose a lender that provides a sizable loan with reasonable terms.
Check your CIBIL score
Your creditworthiness, repayment record, and outstanding obligations are all reflected in your CIBIL score. This is the reason that before approving a sanction, any lender will carefully review your credit history and score. It is crucial that you prove your financial stability by having a strong salary and that you only apply for loans when you have a credit score of 750 or above. Your credit score will drop even further if your loan application is rejected because of your poor credit.
Learn about interest rate and hidden charges
Your ability to afford your mortgage loan will depend on the interest rate at which you service it. Therefore, choose a loan with a low loan against property interest rate that has no additional fees to keep your EMIs manageable. Additionally, be aware that lenders provide you with a sanction based on the asset you use as collateral. This means that when you pledge a high-value property by a reputable builder, you can acquire financing at reduced interest rates in addition to receiving a substantial sanction of up to 60-80% of the value of your collateral.
Weigh your needs and plan repayment method before applying
Decide how much you need to borrow by using your financial needs as a guide. To determine whether you can afford a property loan or not, consider your current income in addition to your current EMIs and regular expenses. Applying for a loan should only be done when you believe it to be an economically sensible course of action and after you have decided how you will pay it back—either through investment gains or just your salary—and only then.
How to obtain a property loan without income proof
The bad news is that, even if you give collateral, a lender will require income documentation as part of the loan application process so they can be sure you will be able to repay the loan in full and on time. Here are some suggestions that may be helpful if you are in need of money but cannot provide documentation of your salary.
Get in touch with the relationship manager. If there is any further guarantee you can provide that will make it obvious that you will make your repayments on time, discuss it with your bank or management.
Add a co-applicant: Having a co-applicant with a good credit history and consistent income may help your case.
Consider peer-to-peer lending: You might speak with online peer-to-peer lenders and inquire about their acceptance of applications without proof of income.
Keep up a positive credit history: Be mindful of your credit standing at all times. Don’t forget to track your credit reports at least twice a year, and make sure you pay all of your bills on time. Any time you apply for credit, having a stellar credit history will work in your favor.