You can take a loan against a residential or commercial property to meet a range of goals. These can be personal uses like children’s education and marriage or business-related uses like business expansion. When you need the loan for an urgent need like a medical emergency, you may want a quick loan disbursal. How to ensure that? Here are some tips to get a quick disbursal of a loan against property.
Boost Your Credit Score
If you have a high credit score, the lender will assume that you are creditworthy enough to borrow a new loan. This can help you get an LAP quickly. Plus you may get attractive loan against property interest rates.
So, make sure to improve your credit score before applying for the loan. You can do that by repaying any existing loans in time and paying credit card bills regularly.
Add a Co-Applicant if Needed
If your credit score is not very high, you can add a co-applicant with a good credit history. This can help you get a quick disbursal of an LAP. Some lending banks offer better interest rates to women to motivate them to apply as co-borrowers. So, if you add your mother or wife as a co-applicant, irrespective of whether they are earning, you may be able to access a lower interest rate on a loan against property.
Pledge an Undisputed Property as Collateral
Whether you take a loan against commercial or residential property, make sure that the property is undisputed. They only the lender can have enough confidence to accept it as collateral to lend you a loan. By pledging an undisputed property as security, you can give the lender peace of mind and therefore, may get a fast loan disbursal.
Choose a Lender Offering Quick Loan Disbursals
This is a primary requirement when you want a fast disbursement. Check on the website of the lending bank whether it promises to offer quick loan disbursals. For instance, some banks disburse loans against property within 72 hours of approval. Look for this facility to be able to avail it.
Keep the Documents Ready
Learn about all the required documents and make sure to keep them ready. This can help speed up the process of documentation and also that of loan disbursal.
Two basic documents that any applicant must submit are a fully filled and signed application form and property documents.
Salaried applicants must provide these additional documents:
- An identity and address proof (KYC) like your PAN card, Voter ID card, Aadhaar or Job card issued by NREGA
- Income proofs like bank statements of the last 3 months, salary slips of the last 2 months and the latest Form 16
Self-employed individuals need to submit these additional documents:
- An identity and residence proof like your Voter ID card, PAN card, Aadhaar or as declared by IHFC from time to time
- Income proofs like bank statements of the last 6 months, last 2 ITRs and B/S (with schedules) and P&L accounts of the last 2 years
Self-employed non-individuals must provide these additional documents:
- Identity proof like MOA or AOA of the company, a copy of GST registration or PAN card
- Income proofs like P&L accounts and B/S (along with schedules) of the last 2 years, last 2 ITRs and bank statements of the latest 6 months
Some of the above tips like increasing your credit score can not only help you get a quick disbursal but also a lower home renovation loan interest rate. Follow the above tips and finance your urgent needs with a quick loan.