Financial crises are prevalent in everyone’s lives. A Loan Against Property can help you overcome these situations. LAP is a loan against a residential or commercial property. Before applying for a loan, you must ensure that you are eligible for the loan. Therefore, check Home Loan eligibility before going ahead. It will make the negotiation process easier and quicker.
What is a Loan Against Property?
A LAP is secured by a mortgage on any part of the land that belongs to you.
- The property’s market rate is assessed to determine the Loan Against Property interest rate, tenure, and other essential things.
- A background check is done on the property to determine if it is clear and free of legal matters.
- The loan is approved after verification of the property.
Some financial institutions require income proof to determine the borrower’s repayment capacity. The creditworthiness of the applicant is established by assessing their income records. However, it can be challenging if you have a dangerous job.
Tips to Get Loan Against Property Without Income Proof
Most financial institutions require you to provide income proof. It can be challenging if you are unemployed or don’t have a stable job. However, it is not impossible to get a loan without providing proof of income. You would have to fulfil additional requirements, and the process might be lengthy.
As a borrower, you can do a few things to obtain a Loan Against Property without submitting income proof. But it would be best if you met the Home Loan eligibility criteria. Here are some strategies that you can follow:
Get a Co-applicant with Income Proof
The support of a co-applicant on a loan can prove to be highly beneficial for you. It will allow you to obtain a more significant loan and give the lender confidence in your repaying capability. However, the co-borrower will become the primary borrower as they have income proof.
Valid Reason for Not Having Income Proof
Give the lender or the financial institution a valid reason why you don’t have an income proof document. The lender will assess your previous income status to determine your repayment ability. This income management should be part of the money management record you keep.
Financial Record
Financial institutions will check your account statements before approving your loan. Therefore, always ensure you keep a minimum balance in your account. Have enough funds in your account so your chances of getting a loan increase.
Chat with Your Relationship Manager.
Your relationship manager can help you with your loan application, and with them, you can have an honest interaction about the lack of income proof. They can assure the loan provider on your behalf that you will repay the amount on time. It will help aid your case and improve your chances of getting a Loan Against Property at a low-interest rate.
Opt for a Lower Loan To Value
The loan provider gives you the amount based on your property’s market value, also known as the Loan to Value (LTV) Ratio. For example, if you select an LTV of 80%, the lender will cover 80% of the amount, and the rest will be your responsibility. Therefore, by choosing a lower LTV percentage, you can improve your chances of getting loan approval without income proof.
You can use these ways if you don’t have income proof. However, do your research correctly, as different financial institutions have separate terms and conditions.
Documents Required for LAP Without Income Proof
You need to submit several documents to get a Loan Against the Property, such as
- Aadhar card, passport, driver’s license, etc., as identity proof
- Address proof
- Passport size photographs
- Past six months’ account statement
- Processing fee
- Property information
Some lending institutions might also ask for additional details. In addition, your chances will improve if you check your Home Loan eligibility beforehand.
Final Thoughts About Loan Against Property
Financial institutions, even payday loan operations, are growing daily, and loans are readily available for every type of customer. On the other hand, people face financial crises every day. Therefore, obtaining a Loan Against Property without income proof and an ITR form is challenging but not impossible. You can get several opportunities by comparing various financial institutions and loans against the property interest rate offered. You can easily find a lender that best meets your needs by doing some research.
