Property loan is given to the individuals who want buy a property, flat, a plot and the construction of a new house. Property loans are given by various banking and non-banking institutions across India, these loans take care of the finances that are required when you are buying a house or a plot. With the rising rates of the property it is difficult to buy a property completely with the savings or the income of the person. Home loans are very useful in this case, as they are specially designed in such a way that they provide flexibility in the interest rates and the tenure for the repayment of the loan. This is the reason why an individual doesn’t feel burdened by the loan he has taken.
But before availing any property loan to an individual banks have a certain criteria that every individual should meet with. If you are able to gratify on these requirements the process of getting the loan sanctioned becomes easy. They are the basic parameters that describe your property loan entitlement:
Salary of the individual:
It is the most basic things the lending institutions see before sanctioning any type of loan to an individual. Higher the salary of the individual he or she has more chances of getting a loan with higher eligibility.
Checking of the property you are planning to buy:
Banks and the non-banking institutions who give the property loan do a background check of your property on technical and legal terms. They check whether the government authorities have sanctioned the property or not. Therefore before buying a property does a back ground check whether it has been approved in technical and the legal aspects. They also check the age of the property while the loan is sanctioned, age of the property when the property loan gets matured.
Profile of the customer:
Lending institution also does a background check of the personal profile of an individual in which they check the academic and professional background of the person. As the loan against home is long term they also consider the growth in your career graph, the kind of industry you are into. The lending institutions would always want an applicant with stable job. Hence, they also consider the current and the total work experience of the person. The banks also consider the customer’s age before giving him a loan. They consider his age at the time of sanctioning the loan.
The credit and the default profile:
Banks and the NBFCs also verify whether you are in the default list of the loans that you have taken earlier. They check the credit score which can be seen easily on the rating sites like the CIBIL score. If the person has bad credit ratings the process of availing for a loan is generally difficult. Also it is difficult to have bad debts and then apply for a loan at a different banking or non-banking institutions. It is always better to compare the property loans that are offered by various banking and the non-banking institutions and opt for a loan which offers you attractive interest rates.