Know About Eligibility Criteria Of Getting Loan Against Property For Self-Employed Persons
A loan against property is used to signify a loan that puts real estate
as collateral to give the borrower the disbursed loan amount. There are certain
eligibility criteria that one has to meet, especially if he is a self-employed
person. Here they are:
A Stable Source of Income
This is the No. 1 criterion for getting such a loan. The person needs to
have a source of income that will not only be enough to meet his financial
obligations every month, but also to repay the debt amount.
The financial institution giving the loan will very likely check to see
the source of income of the borrower. Whether that income is enough to meet his
financial obligations is a good indication of the person’s ability to repay the
debt amount.
Identity Proof
Proper identity proof is also required to be eligible for such a loan.
This means photo identity proof as well as address proof.
Property Papers
The LAP loan is a loan that is made out against a property. So you need
property papers to apply for the loan. The financial institution will ask for
proof of the property papers before the start of the loan application process.
After you are approved for the loan, the property papers will be kept
with the lender till the time the loan is repaid in full.
Before application, you must keep the property documents ready to show
the lender because that is the basis of your loan approval.
Indian Citizenship
You obviously need to be a resident Indian citizen to get approved for
the loan.
Age
Another criterion for getting approved for such a loan is that you need
to be a person who is between the ages of 25 and 60 years.
What Can You Do With a LAP Loan?
Now that you know the eligibility criteria for such a loan, here are the
things you can do with it.
Emergency Expenses: Most people taking out a collateral loan do it to meet an
emergency expense. Whether it is a medical emergency or something else, you can
use it to meet that obligation easily.
Special Occasion: A wedding in the family or
another big occasion can be a time where a lot of money is required. One may
not have the required funds to make it possible. A LAP loan can be a good idea
if you already have a property in your name but don’t want to sell it.
This way, you get to pay for the expenses and also keep the property.
For Renovation of House: You can also use
the amount disbursed to renovate your existing house. For people who have got
their houses built sometime back, the need for renovation or modernization may
arise. One may also require an extension of the house to accommodate new members
of the family. For all this, such a loan is wonderful.
Basically, you can put the existing house as collateral and get the loan
amount against it.
To Buy New Home: In India, real estate is
one of the safest ways to save money and make investments in the future. If you
already own your home, then buying a second property for rental income or to
diversify your portfolio can be a smart decision. A LAP loan allows you to do
that by providing a ready way to get a loan.
Get a Loan from Reputed Lender
When choosing to get a collateral loan, it is important to choose the right lender with good credentials. You
will be putting your owned property as collateral and hence you need a lender
whom you can trust. Also, do ask about LAP balance transfer while you are at
it. If you are already on such a loan and looking for a balance transfer to a
more profitable lender, then you can choose likewise.
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