The LAP market is forecasted to grow at a CAGR of over 14% by FY2026. One of the primary reasons behind this growth is its affordable interest rates. Furthermore, prospective borrowers without ITR can also apply for a loan against property without income proof. Anyone with a property registered against their name can avail this loan and obtain a percentage of the value of the property, as approved by the lender.
So, how will you obtain a property loan without income proof? Let us find out some tips to do so:
Tip 1: Apply with a co-applicant
Having a co-borrower can help an applicant avail a higher loan amount. It also assures the lender that you will repay the amount in the given period. So, when you apply for loan against property with a co-applicant, he/she will be considered as the main applicant because they have income proof.
Tip 2: Justify reasons for not having an income proof
If your inability to file ITR was due to some unforeseen circumstances, you might want to explain that to the concerned person. The loan officer can consider your previous income proof and determine your repayment capacity.
Tip 3: Choose a lower Loan to Value (LTV) ratio
LTV is the percentage of the market value of your property that the lender agrees to disburse as loan amount. For example, if your property is worth Rs.50 lakh and a lender offers 70% LTV, you can acquire Rs.35 lakh as credit. However, if you apply for a loan against property of just Rs.30 lakh for the property, your chances of loan approval would increase drastically, even with missing income documents.
Tip 4: Maintain a healthy relation with lender
When you have a history with a housing finance company, you can use the relationship to initiate negotiations. Thus, if you want to apply for a loan against property without income proof, he/she can guide you through the loan application procedure and help you in case of doubts.
Tip 5: Explain clearly about your income
Officers from your concerned lender will reach your property for inspection when you apply for a LAP. At that time, you must explain explicitly about your source of income. Ensure to inform the concerned person whether you are running an organisation or want to pledge a commercial property. Also, let the official know that you do not have any proof of income or ITR. When you remain transparent from the beginning, there are high chances of the officer trusting the details provided by you.
Documents required to apply for a loan against property
Here the loan against property document requirements:
- Application form
- Proof of identity
- Address proof
- Passport size photo
- Processing fee cheque
- Bank statement for the past six months
To be eligible to avail a loan against property, you need to procure the documents mentioned above. Also, to determine the interest, make sure to use a loan against property EMI calculator. This tool will help you figure out the monthly EMIs and plan your finances better.
Further, after you are eligible to avail a loan you can also enjoy pre-approved offers provided by various leading HFCs across the country. These offers are valid across various products, like home loan, personal loan, business loan, etc. They help in a smooth and streamlined application procedure. To check your pre-approved offer, you need to enter your name and contact details.
Availing a loan against property without income proof might get difficult. However, with proper understanding of how loan processing works, one can avail such loans. Make sure to research different lenders who provide property loans and choose the one with better offers.
Also, ensure that you meet all the loan against property eligibility set by your lender. Exceeding these parameters would simplify loan approval.