Know How To Apply Loan Against Property In Pune

According to a report, there has been a 20% rise in property loan demand in tier -1 cities like Pune in the first quarter of 2021. This growth can be attributed to the RBI’s stance of maintaining the repo rate at 5.90%, allowing lending institutions to levy nominal interest rates.

Additionally, the flexibility of using this high-value credit aids a borrower to make big-ticket expenses with ease. With digitalisation, availing a loan against property in Pune has become simpler. The steps for the same are explained below.

How to apply for a loan against property in Pune?

Individuals can leverage their property’s equity by availing a credit form like a loan against property.  However, the loan amount depends on a lender’s policy and property valuation. 

Hence, it is essential to compare lending institutions in Pune and their levying interest rates beforehand. This will aid in making an informed borrowing decision.

Here are the steps to apply for a loan against property in Pune-

Step 1: Visit a preferred lending institution’s website

Step 2:  Select loan against property from the product tab 

Step 3:  Enter the income details to find the best deals that suit the financial capacity

Step 4: An individual needs to submit the application and wait for a representative to get in touch.

The loan amount is disbursed into a borrower’s account upon meeting the set eligibility criteria and successful document verification. It is imperative to know that every time an individual makes a loan application, the lender’s conduct a hard inquiry. 

Before approving the loan, they scrutinise the applicant’s borrowing profile, credit score, repayment history, etc. Therefore, individuals should practice ways to improve their eligibility for quick loan approval.

What are the eligibility parameters of property loan?

Individuals should know that lenders set property loan eligibility criteria to scrutinise an applicant’s repayment capability. These parameters can vary from lender to lender. 

Some of the common requirements for salaried applicants include-

  • Age- The age limit for salaried applicants is 28 to 58 years. 
  • Employment- Individuals must be working in an MNC, public or private firm.
  • Residency- An applicant must have Indian residency.

Some of the common requirements for self-employed applicants are-

  • Age- Self-employed applicants need to fall in the age bracket of 25 to 70 years.
  • Employment- These applicants must maintain a stable income flow.
  • Residency- Individual must be an  Indian resident.

Potential borrowers also need to submit certain documents that substantiate their reliability. 

What are the documents required against a loan against property?

Some of the common requirements for salaried applicants include-

  • Salary slips
  • Bank account statement of previous three months
  • IT return
  • Identity proof
  • Address proof
  • Title deeds

Self-employed individuals need to submit the following papers to avail a  loan against property in Pune-

  • KYC papers
  • Identity proof
  • Address proof
  • Copy of the documents related to the mortgaged property
  • Statements from a financial institution of preceding six months, etc.

Individuals should know that a lending institution may ask for additional papers depending on their policy. 

Additionally, borrowers should also check factors that influence loan against property.

What are the factors that affect property loan approval?

  • Credibility

CIBIL score and credit report are the two essential factors that influence property loan borrowing. The lenders scrutinise an applicant’s repayment capability before approving the application.  Ideally, they prefer borrowers with a 750+ CIBIL score and credible repayment history.  These borrowers can easily convince lenders to levy nominal loan against property interest rate. In addition, they are liable to receive certain customised services and features. 

For instance, many HFCs extend pre-approved offers that make the loan application simple and hassle-free. These offers are applicable on financial products like property loan, home loans, etc. 

  • Property type and value

The property type and valuation again play a vital role in property loan approval. The lending institutions accept both residential and commercial property as mortgage. Usually, the property’s located in prime locations and surrounded by basic amenities hold significant value. However, this property should be void of any legal troubles for loan approval.

These are some of the essential pointers that a  loan against property in Pune applicants must check beforehand. This will help them in making an informed decision.

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