A loan against property is gaining a reputation as a popular financing option due to the significant loan amount, nominal interest rate and long tenor it offers. So, whether you’re applying for a loan against the property for higher education or for your children’s wedding, getting quick approval will help you fund your requirements with ease. However, lenders require you to abide by certain eligibility criteria as this helps them ascertain your repayment capacity. Should you not meet such loan against property eligibility criteria, your loan may get rejected.
To avoid this it is important to learn the reasons that may cause rejection and what you should do instead.
Choose a Lender that Offers Easy Eligibility
The easiest way to avoid rejection is to apply for the loan with a lender that has a simple loan against property eligibility criteria like Bajaj Finserv. Apart from simple eligibility, Bajaj Finserv also offers a significant loan amount at competitive interest rates. If you are a salaried individual, you can unlock a loan of up to ₹1 crore and if you are self-employed, you can access up to ₹3.5 crore. To offer easy and convenient repayment, Bajaj offers a flexible tenor of up to 20 years.
More importantly, their eligibility criteria require you to just be of the right age, with adequate income. Then you can avail the amount as a Flexi Loan where you can borrow from the total sanction as and when a need arises and pay interest only on the utilized amount.
Have a Stable Employment and Regular Income
The next important tip to avoid rejection is to have stable work. So don’t switch jobs often as this makes you an unreliable candidate. Also, having a regular source of income reduces your chances of loan rejection. Ideally, your total EMIs should not exceed 40% of your net monthly income so keep this in mind. If you have inadequate income, you can take up a second job or freelance to lower your ratio.
Build your Credit Score
Improving your credit history and score also reduces your chances of loan rejection. Having a good credit score, preferably above 750, can help you secure a property loan on favorable terms as it shows the lender that you are responsible with borrowed funds and are particular about repaying them. To improve your credit score start repaying your debts and check your credit report for errors and discrepancies.
Submit Accurate Details and Documentation
Also, it is important to mention accurate details in your application form and submit the right documentation. To make a note of the loan against property documents required, you may visit the lender’s website or a branch. Submitting the right information and documentation puts off delays in approval and reduces chances of rejection. Also, make sure that your property is clear from legal disputes. This is because a property tied up in a legal battle raises a red flag and will certainly cause rejection.
With these tips, you can steer clear of rejection and apply without any worries. You can also check your pre-approved offer from Bajaj Finserv to view customized offers on loans, insurance, and EMI financing. Use these pre-approved offers to simplify and speed up the process of raising finance.