The Top-6 Factors Which Determine Your Loan Against Property Eligibility

Generally, any Indian citizen between 21 and 60 years can apply for a loan in India. However, lenders put in place some parameters to ensure that the loan does not become a non-performing asset or NPA.

The only way to get the best loan against property interest rate is by increasing your eligibility. Here are the six factors that play a major role in increasing or decreasing your loan against property eligibility.  

Credit Score

A credit score above 800 can work wonders. However, if your credit score is below 800, you can still get attractive loan against property interest rate if you show the lender that you have a stable income.

Outstanding Debt

There is no problem in availing multiple loans and cards. However, unpaid dues can harm the loan eligibility. Hence, if you want to get the best loan against property interest rate, you must not miss deadlines for loan repayment. 

Income 

Your income plays a major role in determining the loan against property eligibility. Before applying for the loan, check the lender-set minimum income criteria and apply for the loan. The higher your income is above the threshold, the better are the chances of loan approval.

Nature of Income

Lenders usually evaluate the nature of your income before approving the loan. It helps to have a stable job or business. For example, if you hold a responsible position in a reputed public or private organisation, your loan eligibility will be higher.

Age

Age is another criterion that determines the loan against property eligibility. If you apply for a loan when you are young, the lender may consider your loan risk-free, as you have age by your side.

Nature of Property

Your property functions as collateral security. As the lender may liquidate the property in the case of a loan default, they prefer to accept a property which has high resell value. Hence, you can get a higher loan amount if your property is at a prime location.

Conclusion

Now that you know the factors that contribute to loan against property eligibility, you can easily find the lender offering the lowest loan against property interest rate.