Financial crisis or upheaval is sure to occur and tamper life at one point or the other. Our list of to-do tasks keeps increasing and we are often perplexed with the thought of where to get money from? It is in such grave situations that availing personal loan is the only option that is left. In some cases, you might think of selling the property in your name, why does that when you can instead avail a loan on that property. To avail Loan against Property (LAP) the market value is assessed before sanctioning the loan. After careful assessment of every legal encumbrance, the loan is provided at a certain percentage of the property’s present market value.

There are some essentials that need to be checked and worked upon prior to availing the loan. One of the major constraints is that the property and the title should be in the name of the loan applicant. Basis the lender and the market price of the property, the amount of loan can range from 40 percent to 60 percent pertaining to the assessed market value. Since LAP is a secured loan, the interest rate is comparatively low as compared to a personal loan.

The only downside one is sure to face is the need for you to present legal proof of your income. Presenting mere property documents as collateral is not enough; you have to prove it to the bank that you are capable enough to repay the amount promptly. For the freelancers and unemployed with no work at the moment, who can’t show any income proof whatsoever, these tips might help in availing Loan Against Property without income proof.

• A Relationship Manager is assigned to you if you have a savings bank account with any bank. The manager will be the sole point of contact, who will be handling all concerns pertaining to your loan. Once your relationship manager has been assigned to you, it is required that you make the payments promptly and ask if your loan can be processed without income proof.
• You can add a family member as your co-applicant, a member with valid credit history and a regular source of income. Adding such a member will help increase your chances of getting a loan approved.
• Before any acceptance or rejection of your loan, the bank officer will visit for inspection. This is the time for you to make the officer understand all about your income sources. The officer will take into consideration all that you have informed and then calculate the annual income and the capacity of repayment.
• All the banking habits will be checked and paid a look at. The lender will definitely look at the banking habits of the person. If you exhibit good banking habits consider high chances of availing the loan. Good banking habits are one when you have always maintained sufficient funds.
• Loan to Value (LTV) indicates the loan percentage that will be provided by the bank. For instance, LTV 90% means the borrower will be required to pay the remaining 10% and the remaining 90% of it is funded by the bank.
• Peer to peer lending is also increasingly getting popular these days. The funds are raised through the method of crowd-funding in such an arrangement; the eligible borrowers can disburse with an interest rate. Basis the risk factor that comes with the P2P lending method, you may be charged at a higher interest rate.

 

Getting a loan without income proof in Delhi can be an uphill task with loads of obstacles making the smooth ride a rough one. Lot of convincing, explaining, patience is required along with the right guidance.