A large number of properties in Delhi NCR are registered under GPA. GPA stands for general power of attorney. General power of Attorney is a legal instrument that is used by a person (granter) to confer authority on other person (grantee) to act on his behalf. The action performed by GPA holder is deemed to be performed by the granter itself. But one fact with GPA is that it doesn’t give any ownership of the property to the grantee.
For an individual residing in a GPA property, it is an uphill task to get a Loan against GPA Property from a bank. Banks usually don’t entertain applications for Loan against GPA Property. One of the main reason for this is that GPA doesn’t create any ownership of property for GPA holder. It has been observed that individuals with good income also face problems in getting a Loan against GPA Property.
LoanKuber has prepared a following list of points to help you in getting a Loan against GPA property –
- Clear communication – Try to communicate your source of income clearly with loan officer. Having a stable and continuing source of income would mitigate the risk of loan against GPA property.
- Good CIBIL score – You should always try to maintain a good repayment behavior on your existing loans. A default free repayment behavior would result in a good CIBIL score and it will increase your credit worthiness for Loan against GPA Property in front of the lending institution. Lending institution usually look for CIBIL score greater than 750.
- Peer to Peer lending – Peer to Peer lending platforms are new age platforms which don’t rely on existing lending practices followed in lending industry. They would look into factors like payment modeling, data analytics, social modeling etc to calculate your eligibility for a Loan against Property.
- Be Updated – It is generally seen that areas under GPA are often regularized with proper registry under different government schemes. You should regularly follow news headlines related to property in your city to find out whether your locality is getting regularized or not.
- Registering the property – In some localities, you can register your GPA property by incurring a small cost at sub-registrar office. This small cost can increase your eligible amount for a Loan against Property by 30-40%.
- Seek certain HFCs that offer Loan against Property to GPA – There are certain HFCs and organizations like Religare Housing, Shubham Housing Finance etc which provide loans to the individuals having GPA property.
- Add funds from your side – Sometimes, lending institutions can fund up to certain percentage of your Loan against Property application. You can always add funds from your side to make your application more credit worthiness in front of a lending institution.
It is true that lending institutions don’t offer a Loan against Property to an individual having a GPA property. But you can still get a Loan against GPA Property by following the above mentioned points. You can always reach out to new age institution like LoanKuber to fulfill your dream of getting a Loan against GPA Property.