Getting a loan against property always depends on your CIBIL score and eligibility criteria where you must have a certain score as per the lender. However, availing a loan against property has various benefits as there is no risk cover, especially for the lender because the property kept for the collateral itself fulfils the risk cover, especially in the case of defaults by the customers. Even after that, there are certain norms and eligibility criteria set out by the lenders and you need to fulfil that in terms of income, transactional history and all. Considering all these, let’s have a brief detail for the eligibility, especially for the CIBIL score and others.
Minimum CIBIL Score
It depends on the terms and conditions of lenders and varies as per their priority, whereas in the case of personal loans a CIBIL score of 750 is required. But, to avail of a loan against property, the minimum CIBIL score is 700. Therefore, before applying for a loan against property, you need to confirm that you have a certain CIBIL score i.e., a minimum of 700.
Loan Against Property Eligibility
The loan against property eligibility criteria differs from lender to lender and it is almost the same, where you must have some property for the collateral which can be presented to the lenders and as per its market value, you can avail of a loan. To accomplish this lending process, you must have certain documents like an Aadhar Card, PAN, bank account, Address proof certificate and the papers for the property, especially if some physical objects are there as collateral. However, if you are holding a fixed deposit and want to get the loan against that you must have the paper.
How to improve the CIBIL score
To improve your CIBIL score, especially if it is less than 700 and you are willing to get the loan against property, you can apply for a short-term loan or purchase some stuff through your credit card or with the buy now pay later scheme. Doing so, your CIBIL score will increase frequently, especially, if you are repeating this short-term loan, or shopping process repeatedly. It helps you enhance your score for the future and therefore, you can get approval for a higher amount of loan in future.
Loan Against Liquidity Property
Loan against liquidity becomes easy for anyone, especially if you have a fixed deposit in a bank and you can easily apply for a loan with higher approval chances. In this case, the lenders have the flexibility to approve the loan as there is no risk of default and repayment because your property is already under the custody of the lender during the lending process, and it remains till the closure of the loan. In that case, even a lower CIBIL score can also be considered for the loan.
Conclusion
Considering the loan against property eligibility criteria, you can know that the credit score required for the loan is a minimum of 700, and it can be considered and approved by the lender for the lower score, especially if the property kept for the collateral is like fixed deposit or insurance premium, and after getting its market value, you can avail a loan against property easily. It helps you accomplish all your household needs, especially for what you are looking for a loan. So, if you are looking for a loan against property and fulfil all these eligibility criteria, then apply now easily and get the amount shortly in your account.