Availing a loan against property without income proof is possible as this loan option depends upon your security or collateral, and the lender does not give much importance to your income and credit score. This is a secured credit option, and you mortgage your property to avail of the loan. As you entrust your asset to the lender, you must practice caution with these loans.
May it be an SBI loan against property or Axis or HDFC loan against property, the proceeds can be used for any purpose, may it be personal or business. As banks or NBFCs has the hold of your security, they are comfortable with providing you with the freedom to use the loan proceeds for any purpose. However, if you are seeking a loan via this route, you must note that just a portion of your property value will be provided to you as a loan based on your property’s entire value.
To help you better enlighten yourself about the documentation process of loan against property, online loan against property application, and the loan against property rate, compiled here is a list of crucial dos and don’ts you must be aware of. So, when you go to apply for the loan against property online, you come across the listed dos –
Shop around for the best loan against property rate and loan value – This is one of the crucial things you must consider when applying for a loan against property. Always ensure to speak with the representative from 2 or 3 distinct lenders involving NBFCs and banks. Availing of a loan is the same as buying any of the other loan products. You are totally free to haggle as per your want. Note that even a half percentage point deduction in your loan against the property rate can save lakhs over the long term.
Apply online for: SBI loan against property
Go for a suitable lender – It is necessary to choose a reputable lender from which you obtain the loan. If they are a good lender, you can be totally confident that they are taking good care of your property documents and papers. Always ensure to check your loan properly against property documents for the online loan against property application. In case there is any remote possibility of your property documents or papers being misused or lost, walk away from such transactions instantly. No matter how rushed you are, opt for a lender who is the best and not risky at all and fully trustworthy.
Maintain a strong credit score – Most believe that a good credit score is required for availing of a loan that once the loan is approved, you can allow your credit score to deplete. It is a totally incorrect approach to your credit profile and score. Your score connects all your credit instruments. Paying your loan against property timely and, at the same time, neglecting your credit cards and other loans can make your property loan rate suffer. Keep a watch on your credit score.
Watch your loan MITC or most important terms and condition – MITC is the document that all the lenders offer meticulously when they provide the loan papers and agreement. However, no one reads this. MITC document references all your standard payments, loan foreclosure, pre-closure, property repossession and various other terms and conditions. In case you carefully read your MITC, you will not even require calling up the customer care service or waiting on hold for many of the common questions that you may have.
Save some of your loans and proceed for emergencies – As with other loans, it is advised to set aside a portion of your money from your loan proceeds, equalling a few months’ EMI, to meet your loan repayments in the case of exigency. The norm is simple keep at least 6 months of your EMI handy as an emergency fund. Doing so will protect and safeguard your personal funds in the case of salary delays, medical issues, job losses or any other major problem that may impact your regular flow of income. Note that this fund is addressed as an emergency fund. Just if your income stops suddenly, you must use this fund to cover up your loan EMIs until your flow of income gets back to normal.
Avoid providing anyone with your KYC documents – This goes without saying your identity is one of the crucial aspects of your life. Unluckily, people fall victim to this and are accountable for the actions done. This can range from purchasing SIM in your name to finding out about fraudulent use of your credit cards and loan proceeds in your name. This leaves you stranded. Thus, always keep your original KYC copies to yourself and do not handover unnecessarily to any loan lender whom you do not trust in totality. Note that you must also not allow anyone to photograph these documents of yours.
Avoid skipping your EMIs – Availing on loan makes you liable to repay its EMIs on time and in full. Often you may get tempted to miss out on your EMI to buy an item of luxury. Do not succumb to such temptations. Even a single missed loan EMI may lead to considerable penalties and massively hit your score.
Do not go over your budget – If you have ever availed of a loan, you may be stressed regarding repaying the loan. Making and sticking to your budget is a wonderful way to avoid any stress. Control all your unnecessary expenses and direct every penny of your earnings to meeting your loan EMI. Note that besides serving your EMI timely, you also have the responsibility to accumulate emergency funds. At times in the scenario of emergencies, you may require additional funds. Not having such funds may make you opt for high-cost loans, which thereby enhances your debt burden. You avoid such burdens. Planning before is very important. Not planning before for any emergencies may not just hamper your finances but also make you dependent on debt excessively.
