A loan against property (LAP) is taken against a residential or commercial property mortgage or plot. Before your financial institution sanctions, they evaluate and determine its monetary value. If the title deeds are in place and free of any legal issues, you get the loan at a certain percentage of the property’s market value at the time, typically between 40-60%. 

Since a LAP is a secured loan wherein you pledge your property, your loan against property interest rates is relatively lower than the interest rates for personal loans. You also get much longer tenures with collateral in place. 

Availing a LAP Without Income Proof

Whether or not your loan has collateral on the line or is collateral-free, income proof is an integral part of any loan availing process. The following are a few tips on how to work through this:

• Ask your lender if there is any other proof or document that you can provide to prove your repayment capacity.
• Adding a co-applicant on the loan, someone with income proof, a good credit score, and steady earnings can sway the decision in your favour.
• Maintaining a good credit score can be your saving grace. It assures your lender that you have been consistent with debt repayment in the past. 

Fullerton India offers LAP loans that can help you fund your financial needs. With competitive interest rates, long tenures, and flexible repayment schedules, you quickly become financially secure and stable while repaying the loan at your leisure. Go for it.

Additional Read: Crucial Things To Know About a Loan Against Property

Before the Corona Virus hit the globe, the GDP of the Indian economy as a whole was projected to grow. Most people were sure of the strength of their careers and their ability to hold jobs, get promotions, and increase their incomes. It was but natural they took out different loans to meet the standards of a modern lifestyle.

Unsurprisingly, many salaried, as well as self-employed professionals, took loans to buy a house, car, bike, holiday plan, dresses, mobiles, and more. Now they are burdened with multiple loans, and for those who have clear titles of a commercial or residential property, taking a loan against property for debt consolidation is a great solution. Here is advantages of it go through it.

Advantages

1. You have one EMI – Since all your loans are consolidated in one loan, you have to keep track of only one EMI. It reduces your chances of missing an EMI and thus increasing your burden.

2. Interest rate is lower – Unlike a personal loan or education loan, the interest rate on LAP is lower. A lower interest rate means a reduced EMI, which further decreases your debt burden.

3. No restriction on use – There is no restriction on the end usage of the loan and you can take it to meet any requirement for your day to day life or business need.

4. Renegotiate the terms and conditions – Take the help of a financial expert to renegotiate the terms and conditions of the loan. They might be able to help you get a longer tenure with less stringent clauses.

These are some of the advantages of using your asset to keep afloat during these tough times.

Reference Read: Tips to Get a loan against property without an income proof