Top Factors That Affect PNB Loan Against Property Eligibility

Are you planning to apply for a loan against property? It’s imperative to know whether you are eligible for one or not. Each lender has eligibility requirements they use to approve loans. A LAP is an excellent funding option to unlock the value of an asset and handle a host of planned and unplanned expenses. However, like any other loan type, a loan against property requires the applicant to meet the lender’s eligibility requirements. 

While the eligibility conditions vary between lenders, a few factors affect an individual’s eligibility for the PNB Housing loan against property.

  1. Property’s Value

The collateral property’s cost is one of the most crucial factors determining LAP eligibility. The higher the property’s cost, the more the applicant can borrow. PNB Housing provides up to 65% of the property’s value as a loan.

  1. Monthly Income

Monthly income is a crucial factor that determines eligibility for any loan type. The lenders want to ensure borrowers have adequate income to support EMI payments on time. The minimum income requirement also varies based on the borrower’s location. For instance, living and property costs are higher in cities like Mumbai and Delhi. So, the income should also be higher to handle the financial obligations.

  1. Credit Rating

A credit score lets the lenders understand an applicant’s diligence with credit in the past. So, the higher the credit score, the better the chance of getting a higher loan. Most reputed lenders prefer a credit score of 611 or above. Those with a low credit rating should try to improve it and apply for a PNB Housing loan against property with enhanced eligibility.

  1. Age

The applicant’s age helps check the number of earning years remaining. Since the retirement age for most employed individuals is 60, the applicant should be less than this age limit before the loan term-end. Self-employed individuals get a few more years to repay the loan. Moreover, they should not be in their initial earning years, as lenders prefer applicants with stable jobs and sufficient work experience.

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  1. Occupation

The applicant’s occupation plays a crucial role in determining LAP eligibility. Those with stable jobs and regular incomes have better loan eligibility than others. The eligibility also varies based on whether the applicant is a salaried employee or a self-employed individual. The lender will check different financial documents, like ITR, bank statements, etc., to confirm occupational stability before deciding on the loan amount. PNB housing finance review suggests that those who keep changing jobs frequently will have a more challenging time getting a decent LAP amount.

  1. Co-Applicant’s Eligibility 

Co-applying for a loan against property improves eligibility several times. Therefore, select a co-applicant with a higher income and credit rating, as their eligibility will significantly affect the loan amount. While evaluating a LAP application, the lender will club both co-applicants income and credit scores together and determine the loan amount accordingly.

  1. Credit History

Although credit score is critical in indicating an applicant’s past credit behaviour, most lenders also check the credit history to gauge their sense of responsibility. According to PNB housing finance review, those with a history of missing EMIs, defaulting on loans, and previous loan rejections may get a loan against their property, but a comparatively lower amount than others.

Before applying for a PNB Housing loan against property, understand these requirements. Furthermore, applicants can use the PNB Housing Eligibility Calculator available on the website to check their eligibility. 

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