Home Loan against Property Eligibility

As the name suggests, loan against property is a kind of loan that is dispensed by a financial institution in lieu of the mortgage of a property. The property that is provided as a mortgage fills the security requirement for the lending organization. But, after all this, the ownership of the property rests with the borrower and can continue living in it. The maximum value of expense for a loan against property ranges between 40-60% of the market price of the property that has been kept as debt clearing asset. There are certain eligibility criteria that you need to fulfill in order to get the loan against property.

Eligibility for Getting Loan against Property

There is a procedure for a loan against property eligibility calculator, which can be used to know what is the exact amount that you can get if you apply for a loan against your asset. 

A regular flow of income: Applicant must have a steady and regular source of income, ensuring the home loan EMI will be paid later.

Age of the borrower: The age plays a vital role in the loan repayment. This is because if the person has already attained the retirement age, then there are very fewer chances of getting the loan approved.

Bad credit history: If you are having a very low CIBIL score, then there is no chance your loan is getting an approval.

Tenure: If the tenures are long then the loans will be spread for a longer durations, leading to lower EMI’s.

Inadequate Income Tax Returns (ITR): When a borrower is self-employed, the lender is going to seek for last three years ITR. If you have inadequate ITR, then loan against property without ITR will never be allowed.

Advantages of Acquiring Home Loan through NBFC

On the other hand, there are institutions like Non-banking Finacial Companies (NBFC) who offer limited banking services. As a matter of fact, NBFC cannot receive deposits from the citizens that itself is eliminating a lot of banking regulations. But, they are eligible to offer a loan, credit services, underwriting facility etc. Besides, they also offer home loans which can be utilized for expanding or renovating or buying a plot.

Accelerated Processing: In general, banks take a lot of time to process a home loan, but with NBFCs’ and specially NBFC in Delhi for home loan is a much faster system. 

Lesser Documentation: NBFC does not seek for huge paper trails or documentation for loan approval giving you a higher chance of receiving the loan. 

Less Strict: Banks are much more stringent in their rules while approving loans, while NBFCs do not have any such restrictions.

Competing Rates of Interest: With high competition in the market, the interest rates offered by the NBFC is much lower compared to the banks. This lead to the reduction of the EMI burden as the interest payable is low.

Fewer rules and directions: NBFC have lesser regulations, rather than banks. This, in turn, makes the home loans more accessible to the applicant.

Easy Access for Individuals with Low Credit: Banks offer house loans to those who have a marvelous CIBIL score. However, NBFC has a much broader view and they are lending money to those people who do not have a proper credit score. But the rates of interest is higher for less credit record.