Chennai, an economically potential city on the south-eastern coast of India, ranks third in per capita GDP in India. Formerly known as Madras, Chennai has ample opportunities for individuals seeking substantial funds. Such as a loan against property in Chennai.
This secured loan is taken against a property. Moreover, both salaried and self-employed individuals can apply for it and mitigate diverse financial requirements without any restriction on usage.
Here’s a complete guide on how one can avail loan against property in Chennai:
How to apply for loan against property?
Application for loans against property in Chennai can be made by visiting the nearest financial institutions that offer this credit. Besides the manual application, one can also apply it online.
Here are the steps to follow when applying for a loan against property in Chennai online:
Step 1: Visit the financial institution’s website and look for the online application form.
Step 2: Provide all the necessary details such as full name, contact number, type of employment and residential PIN code.
Step 3: Upload all the necessary documents.
Step 4: Submit the form.
Once the application process is over, the representative of your lender will contact you and verify all the documents to approve a loan.
Documents to submit
Here are the documents generally borrowers need to submit.
- KYC documents: Aadhaar, PAN, Voter, Passport, Driving license
- Address proof: Utility bills(Water, electricity bills), Telephone bill
- Income-related documents: Income Tax Return documents
- Property documents: Title deed, etc.
Besides meeting eligibility and completing documentation, individuals should also consider a few factors before applying for a loan against property in Chennai.
Factors to consider before applying for a LAP
Following are the most crucial factors that individuals need to consider before applying for a loan against property.
- Loan against property eligibility criteria
Eligibility criteria may differ for the salaried and the self-employed individuals. Generally, the applicant has to be a permanent resident of India and above 25 years old. Besides, applicants also need to have a steady income source.
- Property valuation
The value of the property plays a significant role in eligibility for a mortgage loan. Check the current market value of the property to be mortgaged before applying. In this regard, one needs to consider property age, occupancy type, location, etc.
- EMIs
One should consider the repayment tenor before applying for a loan. Longer tenor will have an impact on the borrowing cost. You can choose a longer tenor for affordable EMIs. However, the interest payable increases in that case. Hence, you can use an EMI calculator to estimate the monthly payment.
A loan against property comes with a longer repayment tenor. Borrowers can choose a tenor of up to 30 years as per their repayment capabilities.
- Credit score
Before applying for a loan against property in Chennai, an applicant should check his/her credit score and credit report for fast approval from the lenders. Usually, a credit score above 750 is deemed ideal for loan approval.
- Instant disbursal
Individuals should take a look at the disbursal time which depends on the lenders. In general, a borrower has to wait for at least 3 working days after applying for the mortgage loan. The loan amount is disbursed after the proper document verification and property supervision.
However, leading financial institutions extend pre-approved loan offers for eligible customers to simplify and expedite loan processing. Individuals can check their pre-approved offer by providing their contact information like name and phone number.
- Age of the property
The Property loan eligibility and LTV also depend on the property age. For instance, lenders usually offer lower LTV and higher interest rates on old properties. Simply due to less resale value of it.
Hence, one can enjoy the lowest interest rates, longer tenor to repayment and smaller EMIs when applying for a loan against property in Chennai. However, for that, individuals need to consider the factors mentioned above.
