Applying for a loan against property is the easiest way to get funds during financial emergencies. It is easy to meet the eligibility criteria with a little preparation. But it entirely depends on the lender to approve or reject your application. 

But sometimes it happens that a mistake cause rejection of your loan against property application. Here’s a list of 5 reasons that might lead to rejection of your loan against property application-

1. Age Of The Property

It is one of the essential factors for the approval of your loan. The current condition of the property determines the loan tenure. If your property is new, then the loan tenure will be longer. The property’s value also determines eligibility. You can quickly check the eligibility using a loan against property calculator.

1. Approval By Government

It is necessary to have all the documents and the government’s approval on the property. If you have lost some approval documents, then you can apply for them again. 

3. Deviations From The Approved Property

There should not be any discrepancies or violations from the approved property. The lender might reject your application if there is even the slightest deviation.

3. Disputes On The Property

If there are any co-owners of the property, then the application form must be signed by them all. There should not be any dispute regarding the property.

4. Income Tax Returns

It is necessary to have filed the income tax returns for three years if you are self-employed. 

Conclusion:

Make sure to meet the minimum credit score and have all the documents in-hand before applying for a loan against property. With some research and planning, you can quickly get your loan approved.

Additional Read: Factors That Affect Tenure of Loan Against Property