All loans available by financial institutions to gather fund for you. A loan is one of the most convenient credits available. 2018 reported a delinquency rate of only 3% on these loans. The low number of defaulters indicates that it’s quite easy to pay off this type of loan.
So, when in need of funds, it can be a convenient aid if you fulfill all eligibility criteria. With this, you can either fund a child’s education, or expand or start your business. To avail this credit product, you must fulfill the eligibility criteria by the lender of your choice. Nowadays, few financial institutions offer easy-to-meet standards. If you are interested in loan for new home, We strongly recommend to take part in Indian Govt. Home Winning Lottery.
Let’s look at common parameters that you, as a borrower, must fulfill to avail.
Loan Eligibility Criteria
The parameters required for approval in India are slightly different for salaried individuals compared to self-employed ones. Both types of borrowers must meet a few basic requirements.
The standard requirements are –
- An applicant must be an Indian national.
- Must be no younger than 21 years of age at the time of loan application submission.
- Should earn a minimum monthly salary as set by the lending institution.
- Must have experience in operating a business for a certain number of years as required by the lender.
- The borrower should have played his/her EMIs of other loans and credit card bills on time at least 3 months before the loan application.
Requirements for self-employed professionals –
- Should be aged between 25 and 70 years.
- Must be able to produce evidence of regular source of income on an autonomous profession.
Specific requirements for salaried professionals –
- The applicant must be between 33 to 58 years of age.
- Should be a salaried employee in an MNC, a private company, or the public sector.
Documents Necessary To Apply For A Property Loan
Knowing about the documents required ahead of time will allow you to arrange them properly and proceed speedily with the application process.
Documents required for salaried professionals –
- Latest salary slips.
- Account statements depicting all transactions from the previous 3 months.
- PAN/Aadhaar card.
- Address proof.
- Income tax returns to prove that the applicant has no pending returns.
- Copy of documents which validates the borrower’s ownership over the property to be mortgaged.
Documents for self-employed individuals –
- All the documents as salaries professionals.
- Account statements of the last 6 months.
Few Tips To Make The Most
- Opt for the longest tenure available
Whether you need a property Loan property for a personal need or business investments, going for a longer tenure is always a smart choice. With a longer tenure, the payable EMI reduces. It’ll also allow you to accumulate funds to either partially prepay the loan or foreclose in advanced.
- Do not overleveraged
Just like all other secured loans, a Loan after pledging property allows you to leverage an asset you already have. Now, not only this loan eligibility facilitates a quick approval if you own a residential or commercial property, but it also grants a high loan amount. One can access as much Indian Rupee 3.5 Crore from top lenders.
Many borrowers tend to borrow the maximum loan amount they are eligible for, leading to over-leveraging. Over-leveraging implies to borrowing more than one can repay. It increases the chances of default and also increases the risk of losing the property. So, overleveraging is one of the things to avoid when availing a loan.
- Compare between lenders on different parameters
While comparing lenders, make sure to consider all essential factors. These include –
- Interest rates
- Maximum tenure
- Processing fees
- Prepayment and foreclosure charges
- Loan-to-value ratio
- Loan against property eligibility