Loan Against Property without Income Proof

Want a loan but don’t have income proof? It is a tough task to apply for a loan against property without proper documentation, but it is not an impossible one. While income proof is a vital verification document required by many lenders, with some tips and smart planning, you can avail yourself of great loan options without any proof of income. With your financial helper, My Mudra, you don’t have to worry about any financing issues. With connections to the best banks for LAP without income proof, we are here to help you find the best financial solution for all your problems. 

In this blog, we’ll discuss some smart tips that will improve your approval chances for a loan against property without income proof, eligibility criteria for LAPs, and what documentation is required.  

What is a Loan Against Property?

LAP, or loan against property, is a secured loan. You can avail yourself of it by offering your property, including rented, self-occupied, or any land owned by you, as collateral to the bank or NBFC. Whether you are a salaried individual or self-employed, it is a great financing option for people who own high-value property. Here are some key features of a loan against property:

• Lower Rates: With a reduced risk of repayment, loans against property are usually offered at lower interest rates. At My Mudra, you can enjoy LAP starting from 8% p.a. 
• Larger Loan Amount: If you use a high-value property as collateral, you can enjoy larger loan amounts. You can avail of up to 80% of your home value without any hassle. 
• Longer Tenure: You can enjoy a flexible loan repayment term as long as 15 years. This will help you plan your financial investment accordingly. 

Smart Ways to Secure a Loan Against Property Without Income Proof

Whether you are unemployed, self-employed, or have a sharp eye for the financial investments game, a lack of proof of stable income or a salary slip can hamper your chances of getting a loan against property. If you don't have proof of income, you might need to fulfill other requirements in order to secure a loan against your house. You can get a loan with the help of the following methods:

1. Apply With a Co-Applicant 

Adding a co-applicant on a loan against the property will help boost your chances twofold. It allows the borrower to obtain a larger loan amount and also provides financial businesses with confidence in their ability to repay the loan. Opt for an applicant with a good credit score and stable income proofs to enjoy better interest rates and flexible terms.

2. Banking History

How you are maintaining your savings bank account is a serious question that needs a clear answer before applying for a loan against property. Take a look at your past banking activities to ensure that you have a great record and banking relations. Things like minimal late fees on payments, proper maintenance, regular usage, and enough funds in your savings account will present you as a credible and reliable applicant for a loan against property without income proof.

3. Have a Talk With The Bank Manager

Talk to your relationship or bank manager at every step and clear your doubts. He or she can assist you with the loan application process and connect you with the appropriate individual.  You can also access various bank options from My Mudra and find details and eligibility criteria that suit you the best. 

4. Explain The Reason For the Lack of Income Proof

Set up an appointment with the lender or the loan manager to help them understand why there is a shortage of income documents. If you have a good reason for your lack of documents, you can avail of a loan with ease. Be concise and true when explaining your reasoning.  

5. Lower Loan-To-Value Ratio

The Loan-to-Value Ratio refers to the loan amount your bank is willing to lend you in context to your home's market value (LTV). A lower loan-to-value ratio increases your chances of obtaining the loan without having to prove income. For example, if you apply for a loan of 3 lakh with an LTV of 80%, you will have to pay 20% of the loan amount upfront.

6. Think About Choosing Peer-to-Peer Lending

Opting for a peer-to-peer lending option will help you get higher loan amounts with minimal documentation. However, make sure to go through the terms and conditions properly for a smart decision. You must also compare different loan options to find the one that suits you the best. You can use the My Mudra EMI calculator to understand your monthly payments based on tenure and ROI. 

Also read: 5 Mistakes to Avoid while Taking a Loan Against Property

Documents Required for A Low Documentation Loan Against Property

Each lender requires specific documents when applying for property loans with relaxed income documentation. However, some general and necessary documents are common for all: 

• Address Proof: Utility Bills, such as electricity and water bills, can be used for address proof. 
• Identity Proof: Government-licensed documents such as an Aadhaar Card and a passport. 
• Property Documents: Power of Attorney, Sale Deed, and Property plan are some of the documents you can use to showcase the ownership of the collateral. 
• Co-Applicant Information: If you’re going with a guarantor or co-applicant, you need to submit their personal and professional documents. 
• Other Income Documents: If you don’t have a salary slip, showcase proof of different income sources, such as rental and dividends, for credibility. 

Conclusion

Whether you need some travel expenses, medical funds or a personal emergency, a loan against property is a great financial solution. But applying for a property mortgage loan without a salary slip requires extra care. Follow points such as applying with a co-applicant, improving your credit score, speaking to your relationship manager and many more to fasten this process. Whatever the financial problem may be, turn to My Mudra for an easy and hassle-free solution. So, what’s the wait? Apply for a loan against property now!