If you are applying for a Loan against Property in any Bank then, you need to mortgage your property for this. Property should be clear and without any legal problems whatsoever. Maps provided by property sanctioning authorities are one of the most important documents in any property documents. Banks usually don’t provide a loan against property without map. It is quite understandable from a bank’s point of view that they would not want to mortgage a property whose pan is not even sanctioned by a local authority. But, having said that it is observed that in all major cities of India large number of properties don’t have a property maps. To assist these customers LoanKuber has prepared following points to assist you in getting a loan against property without map-
- Additional Co – Applicant – By adding a additional creditworthy co-applicant to your loan application, you are giving additional assurance to lending institution. Co- applicant with good credit score will add to the comfort level of lending institution. Suppose, if your spouse have a good credit score, you can make him/her your additional co-applicant.
- Good property conditions – A well maintained property in good marketable conditions would fetch a greater market valuation compared to property which is not maintained properly.
- Guarantor for your application – By adding a guarantor to your loan application you are increasing your chances of getting your loan against property without map sanctioned by a bank. Guarantor acts as a protection for your loan against property without map in case you default in your repayment.
- Seek Low LTV – LTV stands for Loan to Value. Banks have certain fixed LTV for Loan against Property. Banks usually offers minimum of 50-70% of market value of property or 80-90% of your loan amount required. Suppose, you require a loan of Rs 50 lakhs from bank then what you can do is to add certain funds from your side. By adding funds from your side, you are increasing credit worthiness of your loan application.
- Seek certain HFCs that offer loans to individuals with No Maps – There are certain companies and organizations like Religare Housing, Shubham Housing Finance etc which provide loans to the individuals having no maps for their properties.
- Good Repayment behavior/good CIBIL – If you have a good repayment behavior for your existing loans running then you must have a good CIBIL record. A good CIBIL score of around 750 and above would increase chances of getting your loan against property without map sanctioned manifold. CIBIL score is the gold standard in lending industry and there is no substitute to a great CIBIL score.
- Proper Documentation – Even if you don’t have Map for your property then you should maintain proper documentation for your property like proper Sale Deed, Agreement to sale , House Tax receipts etc. These additional documents sometimes can nullify of problem of not having a proper Maps for your property.
- Peer to Peer Lending – These new age organizations like LoanKuber are disrupter in Indian lending industry. They are following a new age criteria for lending purposes like social profiling, payment capability, business analytics to assess credit worthiness of borrower. These firms are lenient on borrowers not having proper maps for their property and could still fund a genuine case.
- Private Lenders – In many cases you can find private lenders are more than willing to lend to borrowers loan against property without map. But, these private lenders usually charges a Fixed interest rate which is quite large compared to reducing rate offered by most of the banks. Add to that, it has been observed that these lenders sometime indulge in frauds like transferring properties on their name too.
India is a rapidly evolving financial market and there are plenty of options for every hues of customers. If you don’t have property with maps then you can always rely on modern institutions like LoanKuber in getting a loan against property without map for your property.