In the recent past, the number of people availing loans by mortgaging their property has shot up significantly. One of the most pre-requisites of availing such loans is to showcase the lender that you are financially sound to be able to repay the loan through EMIs or else you face the risk of the property that is mortgaged being taken over by the lender.
The lenders typically before sanctioning the loan advancing the amount you have applied for, assess the market value of the property that you have put up for mortgage. Apart from determining the market value of the property, the lenders also look for the various legal implications that would suggest that you are the real owner of the property. If the lender is satisfied with the legal ownership, the application would be processed further. However, you must know upfront that the lenders use various tools like a loan against property calculator to determine the percentage of the loan amount to be sanctioned against the market value of the property. So be prepared if you get a loan, which is lower than what you have applied for.
Before getting into the income details, here are a few other important details you must know for availing loan against property.
End Use – there is no mandated requirement as such for the end use of the amount you have availed against the property. You can use it for any legitimate purpose including funding your vacation, paying medical bills or school fees or investing in a business. It is a great way to get the funds without selling off your assets.
Loan amount – depending on the lender and the market value of the asset, you can raise about 60-70% of the assessed market value.
Interest rate – since loan against property is a secured loan; the interest rates are comparatively low as compared to a personal loan.
Tips to get loan without furnishing income proof
While anyone can avail loan against property easily, any lender would ask you to provide details of your income even though you have mortgaged your assets. This is done to ensure that you have the ability to repay the loan in full and within the loan duration period. However, if you have no income proof to submit, the following tips will greatly help you.
Negotiate with the bank manager and see if there is any other way you can give them the assurance that will make it clear from them that you will repay the loan on time.
Another effective way to avail loan without any income proof is to include a co-applicant who has a steady income as well as a good credit history. This will greatly work in your favour in convincing the lender to sanction the loan.
Try peer-to-peer lender – you can try the online peer-to-peer lender approach and check if the lender accepts the application without any income proof.
Maintain a good credit history – always be careful about your credit rankings. Make sure that you clear all your outstanding loans before applying for another loan.