Know About The Factors That Affect Your Loan Against Property Eligibility

Availing finances have become gradually more comfortable over the years with the advent of the digital age and the rise of multiple institutions. In case you have decided to borrow funds for your immediate requirements, you need to know about the factors that affect the lending process to avoid rejection and delay. Let’s understand one of the most popular secured loan types in the following section.

Loan Against Property - Eligibility

Loan against property, commonly called LAP, is increasingly becoming popular due to its low-interest rates and ease of processing. However, you need to know about the factors that affect your loan against property eligibility. They are as follows:

Property

The loan processing will be swifter if there is transparency on the property that the borrower pledges with the lending institution. Lenders typically provide loans of upto 70% of the property value, which can be on a higher note, if the plot/building has a better market value.

Credit score

You can avail of better interest rates and can have a faster approval process if your credit score is more than 700. While some top lenders are flexible with the credit score, it is always better to have a check on your credit score.

Tenure

Tenure plays a vital role in your loan application. If you wish to avail of shorter loan tenure, your interest rates would be higher. Hence you need to discuss with your lender on the tenure factor.

Conclusion

Apart from the criteria mentioned above, the age of the borrower, documentation, income source also impacts the loan against property eligibility.

Must Read: How is the Loan Against Property Application Process Works?