Loans against property are beneficial, especially during a financial crunch and in emergencies. These can be availed of with minimum documentation by pledging one’s property as collateral.
However, as you apply for a loan against property, there can be several eligibility requirements, terms, and conditions that will need your attention, so you can do the needful to ensure speedy approval.
As many people apply for a loan against property when they need money urgently, it becomes essential to disregard the delays by using the following tips:
Apply online:
Applying for a loan against property online is the fastest way to secure the loan sum. Once you apply for the same by providing the required information and uploading the required documents, you can receive approval within just 24 hours* and disbursal within 72 hours*, provided your application meets all the eligibility and verification requirements.
We recommend you check with the lender for ongoing offers and discounts, to make the most out of these seasonal savings. Many lenders offer pre-qualified and pre-approved loans against property, based on your business relationship and credit history.
Keep all the documents ready:
Try and ensure that you have the required documents handy before you apply for a loan against property online. Check the lender’s official website for a list of documents required. Keeping all the documents handy will help save the processing time for a loan against property. The lenders typically ask for the following documents:
- Aadhaar or PAN card
- Address proof
- Bank account statements for the last three months
- IT returns in case a borrower is a salaried person
- Copy of the documents of the property that will be pledged
- Most recent salary slips or pay slips
Also Read: Do’s and Don’ts While Applying for Property Loan
Provide accurate information:
Sharing accurate information when prompted will increase the chances of your loan against property approval and ensure that the application process stays hassle-free and smooth.
Ensure financial stability:
When assessing your loan repayment capacity, lenders see if you can maintain your average monthly balance. Financial institutions calculate the average monthly balance by adding the daily closing balance of all days in a month and then, dividing it by the total number of days in a month. So, if you maintain an overall balance, lenders are more likely to entrust you with a larger loan sum.
Several NBFCs also offer near-instant loans, pre-approved loans against property, and pre-qualified offers that are hassle free and seamless, if you maintain a higher average balance in the savings account.
Maintain a good credit score:
Your credit score represents your creditworthiness. A credit score that exceeds 700 is typically considered to be good. So, a score that is above 750 can serve as an added advantage in quicker approval of a loan against property.
Your credit score is one of the most essential criteria that lenders mostly use to evaluate your credit profile, especially in a loan against property. Therefore, your income as well as your credit repayment history are majorly considered while approving a loan against property. If the credit score is decent, the lenders consider the borrower’s profile to be of low risk, indicating the possibility of you defaulting on the loan repayment in the future is lower. This not only increases your chances of getting the loan against property approved faster, but helps in getting a lower loan against property interest rate and lower processing fee.
Final Word
If you follow the tips mentioned above, there are higher chances of getting the loan against property approved faster. New borrowers are advised to apply for a loan against property after researching the options available to them. Remember to read the terms and conditions and charges like pre-payment charges, processing fees, and foreclosure charges in advance.
