Helpful Tips to Help You Get a Loan Against Property Quickly and Easily

Posted on Monday, July 3rd, 2023 | By IndusInd Bank

Getting a loan against property quickly can be a challenging task. But with some tips, you’ll be on the right path. These include maintaining a high credit score, having a stable income, adding a co-applicant, having a low debt-to-income ratio, and choosing a lender with whom you have an existing relationship.

A loan against property is a reliable way to secure large fund amounts, especially during financial emergencies. There are several loan against property benefits including lower interest rates – because it is a secured loan – flexible tenures, and tax benefits (subject to the purpose of the loan)

That said, securing a loan against property can be daunting for some borrowers, given that it requires putting up property as collateral. Additionally, the waiting period – from loan application to disbursal – can be quite long, given the number of checks involved. Fortunately, there are a few ways to speed up the process.

Read on to learn tips for obtaining a loan against property quickly and with relative ease.

1. Maintain a High Credit Score

Remember, your credit score is a measure of your creditworthiness. It gives your lender an idea of how likely you are to default on your loan payments based on your past loan repayment history. A lower credit score points to a higher chance of defaulting. Since a lower credit score indicates a higher probability of defaulting on low payments, lenders may take longer to verify your documents, increasing the loan processing time. You may also be charged a higher interest rate.

So, ensure you have a good credit score before you apply.

2. Have a Stable Income

Lenders believe that people with a higher income are more likely to pay their EMIs on time. What’s more, they tend to process the applications of such individuals relatively quickly.

So, ensure you have a stable income and don’t switch jobs quickly if you plan on applying for a loan. This will show your lender you have a stable source of employment and have the funds to repay your loan on time, making them more likely to sanction your loan quickly.

3. Apply with a Co-applicant

If you do not have a stable income to give your lender the confidence that you can repay the loan on time, you could apply with a co-applicant to improve your chances of  loan approval.  Co-applicants could include a spouse, a parent, or a sibling. It must be noted that if the property you wish to mortgage has multiple owners, it anyway becomes obligatory to apply with the other co-owners.

4. Have a Low Debt-to-Income Ratio

Along with the CIBIL score and income, lenders also check borrowers’ debt-to-income ratio to understand their loan repayment tendencies. Having a higher debt-to-income ratio signifies you spend a considerable portion of your income paying off your debts. So, if you take another loan, you may not be able to make the repayments in a timely manner. This may affect your odds of loan approval.

So, maintain a low debt-to-income ratio before applying for a loan.

5. Choose a Lender With Whom You Have a Relationship

Lenders may process your loan applications faster if you are an existing customer of the bank or have previously taken a loan with them and repaid it on time. This is because you have established their trust in you.

Apply for a Loan Against Property With IndusInd Bank

While the above tips can help you get a loan against property quickly, you can make the application process much easier by choosing a lending partner offering a transparent, hassle-free loan application process.

IndusInd Bank allows you to apply for a loan against property online. Once you fill in the details, a bank representative will contact you to help you complete the process. You could also call the phone banking number, or pay a visit to your nearest IndusInd Bank branch.

That is not all. IndusInd Bank also offers you the maximum value of your property through their loans, provides an attractive interest rate, and flexible tenures that last up to 20 years. Other loan against property benefits at IndusInd Bank include doorstep banking services and flexibility of end usage.

Apply for a loan against property with IndusInd Bank today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.