If you have ever taken a loan against property in India, you must know that it is a gateway to financial freedom. Being able to meet that urgent expense is a wonderful thing. From opening a new branch of your business to paying for your child’s university education, a loan against property can help you fulfil many dreams.
One of the most outstanding features of a loan against property is that you can get it at a minimal interest rate. However, this depends on your eligibility which is determined when you use the loan against property eligibility calculator. So, before applying, ensure you know how much a lender will likely disburse.
Taking a loan is a giant step; one that must be evaluated before you go through with it. How much do you know about how lenders process loans against property in India? Yes, learning about the application beforehand saves you a lot of stress, but you should be concerned about how your application is processed too. This article will show you how a loan against property in India is processed.
How Lenders Process Loan Against Property Applications
Below is a list of the stages that your application for a loan against the property must go through:
Fill Out the Application Form
Lenders require personal information, such as your name, age, city of residence, details about your employment, and type of property. Note that only residential and commercial properties are eligible to serve as collateral. You will find the loan against property application form on lenders’ websites and in their branch offices.
While applying offline is a good idea, applying online promises you a speedy process. Lenders often accept applications both offline and online, making the opportunity to make loans accessible to all.
Confirm the Details Submitted
While filling out the application form, you might commit some natural errors. After submitting the form, the lender’s representative will contact you to discuss possible loan options and also point out errors, if any.
Submit the Necessary Documents
Be sure to submit documents like proof of address, identity, the property’s papers, etc. Lenders mandate that you submit the above documents as part of their requirements. So, show the lender how deliberate you are about getting the loan and submit your documents for consideration.
Review of the Documents
Upon submission of the documents, the lender verifies the documents to ensure that all is in order. Sometimes, the verification is concluded without a face-to-face meeting. In other cases, the lender may set up a meeting between you and a representative.
Acquire a Sanction Letter from the Lender
In this stage, you can review the loan terms and conditions like tenor and interest rate. To get to this stage, the lender must have confirmed the authenticity of your documents and approved your application.
Sometimes, the offer may not measure up to your expectations. It’s fine to discuss this with your lender but also know that several factors including credit score and age are examined closely. Having a low credit score often means that you won’t get a high amount.
Property Evaluation and Legal Check
The lender will send a professional to perform a valuation of your property. The lender will also confirm whether your property is involved in a legal case or not. Lenders often turn down loan requests when the property is involved in an active legal case.
After your documents and property have been verified, the lender pays the approved loan amount into your bank account. To confirm that the fund has been disbursed, you should check your loan account.
Now that you know the different stages your application must go through, you can prepare adequately by inputting the correct information and submitting the right documents. Remember that you must be aged between 28 and 60 years as a salaried applicant. Applicants who are professionals must be aged between 25 and 70 years.
With the right lender, new and existing customers will enjoy a stress-free application process. With customized repayment options, low-interest loans based on your eligibility, and a tenor of up to 18 years, taking a loan against property has never been attractive until now.
Take advantage of the opportunity today!