A loan against property is an excellent option for those individuals who want to avail a sizable amount of capital by mortgaging an existing property. However, before a borrower plans to apply for property loan, there are certain tips to consider.
What tips to consider before applying for a loan against property?
Before availing a loan against property, borrowers must consider the following:
- Property loan eligibility criteria
Individuals must understand the associated eligibility criteria for a loan against property. These factors generally vary across loan providers, and borrowers must have a clear idea of them in order to reduce the chances of loan rejection. Individuals can also use a loan against property eligibility calculator to learn about their chances of loan approval.
- Value of the property
The value of a particular property will depend on certain factors like size, age, locality, builder’s reputation, facilities available, etc. A new property in a prime location will have more market value and can fetch higher loan amount. The loan approval is generally faster if the property is located in a good area and has a high value.
- Check the CIBIL score
Borrowers should check their CIBIL score before applying for a loan against property. Those with a CIBIL score of 750 or higher are considered more creditworthy by lenders, increasing the chances of loan approval and its speed.
Applicants must also use a loan against property EMI calculator before going forward with the application. This will help them get a clear idea of the EMI amount and adjust the desired principal and tenor accordingly.
