Consider carefully before taking a loan against property

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Consider carefully before taking a loan against
property You can take a Loan Against Property in
Delhi not only for home renovation or commercial
properties but also against a plot of land. In
fact, it is considered as the safest proposition
for the banks as they have collateral of the
property in support of the finance they
provide. And, a salaried person can avail it for
various purposes such as educational needs of
his/her children, medical expenses, home
renovation and many more, through mortgage loans.
At the same time, the business enterprises opt
the Loan against property as collateral for
business loans in Delhi and for procuring working
capital requirements. In fact, in present time,
a loan against property can be easily obtained
due to its secure nature. Banks usually maintain
a margin, ranging from 50-90 of the property
value also known as Loan-to-Value, while
sanctioning a Loan against Property. Further,
this facility is becoming popular because the
borrower can utilise the property despite
mortgaging it in favour of the bank. Eligibility
for a loan against property Current income - For
a regular employee, the salary slips of the last
three months and bank account statements of the
previous six months are required. And, in the
case of self- employed professionals, financial
statements such as Balance sheet and Income
statements are needed. You must complete these
financial statements with the bank statements
enabling the banks to co-relate them. Continuity
of Employment - A letter from your employer which
proposed that the borrower is employed with them
in addition with the income tax form (Form 16),
and IT returns of the past two years should
serve. A self-employed person has to submit proof
of doing business such as GST registration
certificate, partnership deeds, and certificate
of incorporation. Current Obligations - One
should have a net income of 50 after accounting
for all the EMIs, including the proposed one for
the Loan against Property. And therefore, a
borrower needs to disclose his/her current
obligations. Credit History - The lending banks
are members of CIBIL (Credit Information Bureau
India Limited), who can pull out the records to
determine your credit score. Normally, a credit
score in the range of 600 and over is
acceptable. Value of the Property the
eligibility of purchasing a loan against property
highly depends upon the value of your property.
An LTV ratio is in around 40-70 of the location
of your property is acceptable for most mortgage
loan scenarios. Legal Scrutiny Report - To carry
out the search of the property, banks have panel
advocates in the respective Sub-Registrar office
to ascertain the chain of ownership. Further, it
enables them to determine if there are any
impediments on the property. This search is
critical as it
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allows the banks to understand whether you have
the eligibility to create the evenhanded
mortgage in favour of the bank. Age of the
Borrower - At the time of application, the
minimum age of the borrower should be 21 years.