A loan against property can be a conducive solution to all business related financial needs. However, in order to get approved you’ll have to qualify the eligibility conditions. For instance, your repayment capability is the first criterion that lending organisations check in order to get approved for a mortgage loan for self employed. This is why salaried individuals often enjoy hassle-free loan approval and disbursal owing to their repayment assurance. That said, you don’t have to worry just because you’re a self-employed, you can follow the below mentioned tips and ensure approval for the same.
Things to Look for Before Availing Loan Against Property India:-
Business vintage: Make sure business vintage is up to the mark. As a self-employed individual, you’ll have to make sure your business is at least 3 years old. However, even if your business is not qualifying the minimum business vintage requirement, you can try other lenders who don’t have such conditions or who are flexible with their terms for eligible candidates.
Ensure a good CIBIL score and credit history: Secondly, ensure a good CIBIL score along with a convincing credit history. It would help you convince the lender of your credit management and loan repayment abilities.
Decrease your loan to value ratio: Lastly, reduce your loan to value ratio. You can do it in two ways: (1) find a way to minimize your expenses and accordingly ask for lesser amount as loan, (2) mortgage a collateral of higher value.