There may arise situations when it becomes crucial to avail a loan against property (LAP) even with a home loan pending. Situations such as medical emergencies, weddings, children’s education, business expansion, and others may create the necessity for emergency funds.
So, with affordable Property Loan Interest Rate and flexible tenures, banks and NBFCs in India can provide a LAP even with a home loan running. Moreover, NBFCs provide a LAP repayment tenure ranging from 2 to 20 years.
Salaried individuals can get up to Rs.1 Crore; self-employed ones can get up to Rs.3.5 Crore with a LAP. Further, customers can submit their documents from their doorstep and get their application processed within 72 hours.
With such benefits, a loan against property can meet all customer requirements even if he/she has an existing home loan. However, for availing such a loan with a home loan running, a customer needs to confirm to the following conditions and eligibility:
Conditions:
1.Increasing Existing Home Loan Tenure
If the customer is eligible to extend the tenure of his/her existing loan, then it can help in availing a new loan against property. Increasing the home loan tenure will lower the monthly EMIs; this will aid in making room for the customer to repay his new LAP and even consolidate his/her debts.
2.Decreasing Loan Interest Rates
Decreasing the property loan interest rate of the existing one can also help in availing a new LAP. Many a time, customers pay higher rates of interest to repay the loan sooner. However, when looking for a new loan, they can decrease the rate of interest amounts to avail a new loan against property.
Decreasing the rate of interest will also lower the monthly EMIs thus, again working like the condition mentioned above.
3.Showing Rental Income
One can avail a LAP on another property if it has been rented out. Showing regular rents from the second property will affirm as a consistent income. This will enable the bank or NBFC to ascertain that the customer can pay off the monthly EMIs with the property loan interest rate of the new loan.
4.Having an Employed Spouse
If the spouse of the customer is employed, then he/she can stand as a co-applicant to the new loan. The employed spouse will provide a guarantee to the bank or NBFC and also vouch for the credibility of the applicant.
Eligibility:
I.Age
For availing an additional LAP, a salaried individual needs to be between the ages of 33 to 35; a self-employed individual should fall between the ages of 25 to 70 years.
II.Income
Salaried customers need a stable job either with a private or public enterprise to apply for this loan.
Self-employed individuals require a certified business with consistent monthly income. The business should hold a valid certificate for any government recognised body.
III.Income Tax Returns
Salaried individuals need to file income tax returns and show the same to the bank or NBFC. Self-employed individuals need to file income tax returns of their business for at least the past 2 years.
IV.Credit Score
Not only do both salaried and self-employed individuals need a credit score of 750 or above, but they also require a good credit history.
A good credit history would mean that the customer is not credit hungry, has never defaulted on a loan, and has good repayment history of his/her EMIs.
By following the directions mentioned above, one can avail a loan against property even with an existing home loan from banks and NBFCs.
NBFCs provide attractive property loan interest rate; they make it easier for customers to evaluate their requirements with the loan eligibility calculator. To know moew about the difference read here: What is the Difference Between a Loan Against Property, Mortgage Loan and Home Loan?