Potential borrowers need to fulfil all loan against property eligibility requirements to avail such credit without hassle.
Some of the factors that influence these eligibility are discussed below.
Factors affecting LAP eligibility
Credit history
Credit history or CIBIL score is a crucial parameter that affects the LAP eligibility significantly. This factor substantiates a borrower’s repayment capability and creditworthiness. Most lending institutions give preference to individuals maintaining a 750+ CIBIL score. Hence, borrowers must clear any outstanding dues and practice timely repayment to improve eligibility.
Applicant’s age
Age is another vital factor influencing Loan Against Property eligibility. A financial institution offers an affordable interest rate to young borrowers due to their repayment capability. The chances of loan rejection for the retired or aged applicant is relatively high.
Income stability
Income stability and employment status are again vital for both salaried and self-employed loan applicant. Lenders affirm a borrower’s salary structure and association with the company to determine his/her repayment ability.
Property value
Financial institution weighs the mortgaged property’s value as an eligibility parameter. A LAP borrower is needed to submit all the authentic documents for the same. Ideally, a property positioned in the primary location surrounded by essential amenities holds a significant value. However, it should not be associated with legal turfs or illegal activities.
These are some factors that noticeably affects the loan against property eligibility. Hence, potential borrowers must try to improve their eligibility to make a hassle-free loan application.
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