One of the most complicated things to go through while taking a loan against property is completing the application process successfully. It is because usually, people lack the knowledge of Loan Against Property Eligibility Criteria. The only way to make sure that your application gets approved the first time around is by keeping in mind rules of a loan against property in India.

However, every financing organisation has a different set of requirements that need to be fulfilled while applying for a loan against property. To make it easy for you to understand these basic guidelines below are a few points. By considering them before sending a formal application, you will never be turned down for a financing service.

1. Read the Application Form

The application form which you get during the process of taking a loan against property has all the relevant information mentioned. It gives you an insight into all the criteria you need to meet in order to acquire finance.

Reading this form is essential while applying for a loan against property so that you do not miss out on any critical part of the process. If you do, there are chances that your application might get rejected. This will later lead to resubmitting the entire application again.

2. Collect all the Documents

While applying for a loan against property, there are many different documents that you would require. Some of the loan against property documents required also fall under the category of identity proof as well as permanent residence proof.

By submitting these documents along with your application, the entire process will be able to be simplified. It is because the financing organisation will be able to check your credit background instantly without having to dig deep into your profile. It is recommended that you use government approved identity and residence proof.

3. Valid Proof of Income

The rate of success of your application for a loan against property depends entirely on your capability to repay the amount. That is why I highly recommend you provide valid proof of income along with your formal application. The Interest Rates on Loan Against Property are quite low in comparison to other loans available.

It can be done by submitting the official employment contract of your company in case you are already a permanent employee. On the other hand, if your job duration is of less than one year with the current employer. Then you can also use the appointment letter as a proof of income while applying for a loan against property.

4. Financing Conditions

Like I said earlier every financing firm has a different operating method which is why reading their loan conditions is a must. It will include information about things like a loan against property tenures and even loan against property features.

In short, it will give you an idea of the type of loan applications which are approved. So, the next time you are filling out a request for a loan make sure you do it in accordance with the terms and conditions.

5. Property Documents

Lastly, you should never forget that a loan against property is precisely what the name suggests. That is why carrying the original records of your property along with your application is a must.

Additional Read: Cover your expenses with low-interest rate on loan against property!

Before, the application has been approved. The bank will use these documents to verify if you are the sole owner of the property that you are putting out as collateral. It is a critical part of the application process which can be made straightforward by carrying the correct documents.