How to get Loan Against Property without Income Proof or ITR

If you are buying a house, you apply for a home loan. But if you already own a house and need funds, you may apply for loan against property without income proof. Crisis situations can arise out of nowhere for all of us. At such times, we may have to run around looking for the best and quickest way to arrange for funds. While some max out their credit card usage, others may try getting a personal loan. However, most people often overlook getting a loan against property, as it is the one of the fastest ways to arrange money for your immediate need.

What is Loan Against Property Without Income Proof?

A loan against property is a secured loan provided against a commercial/residential property by banks, housing finance companies, and NBFCs. The loan funds are available at a lower rate of interest in comparison to personal and business loans. Any individual, whether self-employed or salaried, may apply for a loan against a house if they own a residential/commercial property. Borrowers prefer this type of loan because there is more probability of getting a higher quantum of the amount in LAP.

The demand for loans against property without income proof is increasing day by day because it is cheaper than an unsecured loan. A mortgage loan is very different from a home loan. While a home loan is taken only to purchase or construct a home, a loan on a house can be taken for any reason such as a child’s education, marriage, medical emergency, business expansion, etc. Here, you don’t need to provide income proof for availing of a LAP, unlike in the case of a home loan. Most borrowers with an asset opt for a loan against property without income proof in case of urgent need of funds.

Features Of Loan Against Property Without Income Proof-

  1. Lower rates of interest– Firstly, a loan on the property is a cheaper option to procure funds. If we compare it with other funding options, a loan against property without income proof is available at a lower mortgage loan interest rate. The best aspect of LAP is that the owner continues to occupy the property even after getting the loan.

  1. Multipurpose Loan objectives– When you get a loan against a house without income proof, you can use the loan amount for various purposes such as your child’s marriage, education, medical expenses, starting a business, home remodeling, etc.

  1. Easy loan against property eligibility criteria– Lenders are willing to offer mortgage loans without income proof to borrowers as it is a secured loan. Even if the borrower makes a default, the amount of the loan can be recovered from the property. As the loan amount is adjusted against the value of the property, the borrower will find it easy to get the loan approved. You may calculate the loan amount by using the EMI calculator for loan against property for longer tenures.

  1. Pre-payment of the loan– The borrower can prepay the loan amount whenever funds are available for quick closure. Some banks charge lower or no fees for pre-payment of the loan amount. You may opt for banks that offer no pre-payment charges on loans.

  1. Longer tenure – If you compare personal loans with loans against property online, LAP is available for longer tenures of up to 15 years. Whereas personal loans are available at a higher rate of interest for up to 7 years.

  1. Lower EMI– As a loan against property without income proof is available for a lower rate of interest and longer tenure, the EMIs are lower. A loan against property without income proof is highly suitable for borrowers who cannot pay higher EMIs.

  1. Type of property– Borrowers can mortgage their self-occupied house, a rented residential property, or even a piece of land that they own for a loan. The major aspect of a mortgage loan on a home is that it should be free of any kind of litigation and mortgage. The title of the property should be clear and there should be no doubt related to it.

  1. Repayment capacity– The lenders evaluate the repayment capacity of the borrowers on their income statements, current debt, credit score, etc. The borrowers need to submit their income statements, property papers, and bank statements to avail of loan against property without income proof or ITR.

  1. Property valuation– A Loan against property without income proof is given against collateral that is an immovable property, i.e., a constructed house or commercial property. Before checking the eligibility and amount of the loan, the lenders will evaluate the property. The quantum of loans will depend upon the current fair market value. The market value does not depend upon future value or the book value. The lenders generally provide 50-60% of the market value of the property. You may calculate the loan to value (LTV) using the EMI calculator for loan against property.

Loan Against Property Eligibility

When a customer applies for LAP, the lender considers the applicant’s credentials and eligibility for sanctioning. Some of the important factors that lenders consider for eligibility are age, nature of employment, income, and value of the property.

The above factors indicate that a loan against property is a feasible option to raise funds for various purposes. LAP is a much cheaper and risk-free option for borrowers as well as lenders. Hence, if you have a property and need immediate funds, you can get apply and get a loan against property without income proof easily within a week.