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Owning a property is an asset. Property can be a great way to help you earn rental income. In the financial crisis, it can also act as a collateral when you want to borrow a loan for any purpose. Many people avail loan against property or LAP to meet personal needs or fund a business. Any person, be it a salaried or self-employed, both can apply for a loan by mortgaging residential or commercial property.If you are looking to apply for Loan Against Property, income proof is considered as the primary eligibility criteria as it determines your repayment capacity. Without income proof, it is difficult to get the loan sanctioned, even if you have collateral. But, you can still avail mortgage loan, follow the below tips to increase your chances of approval:
- Search for a co-applicant: Those applying for loan against property without income proof can opt for a co-applicant. The loan will be a joint application wherein you can show that your co-applicant has a steady income generation by showing his income proof documents.
- Peer-to-peer lenders: This is a type of crowdfunding that uses an online platform to raise funds for borrowers who are unable to avail from traditional financial institutions. The lenders are mostly investors who are willing to offer online credit. If you are using peer-to-peer lending, you will receive a loan at a lower interest rate.
- Discuss with Relationship Manager: You can directly have a word with your relationship manager regarding your income proof. He/she may approve your loan based on your creditworthiness and reliability to repay the loan on time.
- Good credit history: Loan approval also depends on your credit score history. A good CIBIL score gives your bank an assurance that there will be no delay in repayment. It will be an add-on in terms of proving your reliability.
- Banking activity update: Keep track of your banking activities if you have a savings account with a bank. You must ensure that there are sufficient funds in your account as this will eliminate repayment worries to some extent and increase your chances of getting a loan without income proof.
Keep your worries away if you do not have income proof; you can use the tips to increase your chances of approval on loan against property.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.