5 Tips to Get a Loan Against Property Without an Income Proof

Immediate financial crises have to be addressed with workable and flexible solutions. Among the various credit tools available in the market, the loan against property stands out as a prominent option. This is because of the security it offers lenders through collateral submission; they also extend these credit tools to applicants with low credit scores.

However, currently, our workforce includes freelancers and the self-employed sector who have emerged as a sizable workforce of many industries. As the employees belonging to these sectors might not possess a valid income proof, the common question that arises is, “are they still eligible to apply for a loan against property?”

Let’s delve into this comprehensive draft that covers the significant aspects of loan against property and the five ways to apply for this loan without income proof.

Loan Against Property: A Glance

Loans against property are a secured credit tool where a loan is sanctioned based on the collateral submitted. The loan amounts the applicant receives will be governed by the market factors that influence the value of the property provided. It also gives access to applicants with lower credit scores to avail of loans.

The loan against property interest rate and eligibility criteria put forward for a loan against property vary from lender to lender. Applicants can compare the interest rates and choose a lender that best synchronises with their interests.

With loan interest rates of 9% to 24% lenders such as Fullerton India have loan plans that sync with every applicant’s requirements regardless of self-employed or salaried.

5 Tips to Obtain Loan Against Property without Income Proof

Unfortunately, the income proof is the primary criterion stated by lenders besides the property documents. Applicants can verify their eligibility using an online loan against property calculators. However, every problem has a workable solution.

Here’s how an applicant can apply without an income proof:

Relationship Manager

An applicant who possesses a savings account with the lender will be assigned a relationship manager. State and discuss the difficulties posed for furnishing the income proof. As the relationship manager is the point of contact that an applicant can have with the lender, situations can be eased out with their intervention.

Adding a co-applicant

A co-applicant with a good credit score and regular income increases the margin of loan approval of the applicant.

Explain the Income and Difficulties Faced to Furnish the Income Proof

If the applicant is a freelancer or self-employed individual with their own business running, it might be challenging to provide income proof. Before lenders approve any loan, the collateral submitted is inspected, and the officer representing the lender examines the authenticity of the documentation submitted. Explain to the officer regarding the source of income, nature of it and the inability to provide income proof. The officer will gather the information and calculate the repayment capacity accordingly.

Peer to Peer Lending

Peer to peer lending is immensely popular these days. The funds are raised through crowdfunding which is then sanctioned to worthy applicants. Contacting the nearest peer platform and verifying their eligibility criteria will help the applicant make an informed decision.

Choosing a Lower Loan to Value

Loan to value indicates the percentage of funds to be put by the lender. Although this increases the probability of loan approval, an applicant might be required to shelve the remaining amount.

Conclusion

Procuring a loan against property could be difficult without an income proof document. However, with healthy credit scores and some workable solutions, applicants can receive funds from potential lenders.