In India, multiple financial institutions provide a loan against property (LAP) to customers; however, different institutions exercise a different set of eligibility criteria and other prerequisites to approve a LAP application.
For instance, certain financial institutions provide a loan against property without the need for an applicant to submit his or her income tax return. Regardless, you need to ascertain that you are eligible for a LAP before applying.
Ways to improve eligibility for a mortgage loan
Things you can do to ensure that your property loan eligibility improves are –
Hold a high credit score
It is essential to possess a healthy credit score before you apply for a loan against property. It substantiates your credibility to the lender and improves chances of application approval. A high credit score can also fetch an affordable property mortgage loan interest rate.
Apply for a low LTV
An effective way to increase your eligibility for a loan against property is to apply for a low loan-to-value ratio. It is the percentage of the amount you avail as a loan, calculated against the value of your property. A low LTV implies less risk for the lender.
Provide sufficient income proof
In case you want to avail a loan against property without ITR, you need to provide other essential documents which substantiate your income, such as payslips, bank account statement, etc.
Alongside these factors, it would also aid if you have an agreeable debt to income ratio in the loan against the property process.