The need for quick cash can arise at any time. During an emergency, one of the best ways to make the necessary arrangement is to apply for a mortgage loan or a loan against property. You can pledge any asset you want, be it business equipment, a real estate property, machinery, etc. against the loan and get the necessary amount. While many lenders in India offer LAP, the processing time of the loan depends on how quickly and efficiently you meet the requirements of the lender. Here are a few tips that can help you fasten the loan approval process.
- Determine the loan amount you want to apply for
Before you approach any lender for a loan, you must ascertain the amount you wish to borrow. Make sure that you borrow only as much as you need and afford to repay. Typically, applications for a smaller loan amount gets approved faster than the applications for a larger amount as it requires several verifications and assessment of the borrower’s profile.
- Be updated with your credit score
The credit score is one of the most important factors that the lenders consider while assessing the loan application. The credit score is a crucial indicator of your credit worthiness. The higher the credit score, the better your chances of getting the loan approved. But, if your credit score is low or if you have a bad credit repayment history, the lender will consider you a risky borrower and may reject your loan. So, to avoid this situation, you must keep updated with your credit score. You can request the credit bureau for your credit report and based on the ratings, take steps to correct it.
- Stay on a steady pay-roll
The employment history is another important factor that the lenders consider while approving the loan. If you have had a history of switching jobs frequently or have long breaks in between jobs, it would indicate to the lenders that you have inconsistent income. So, if you are thinking of applying for a mortgage loan, you must remain employed with a single employer for a considerable time and have a steady salary. This will not only increase your chances of getting your loan approved but also complete the process faster.
- Keep your documents ready
One of the major reasons why loan approval process is delayed is because of the borrower’s inability to provide the necessary documents on time. The lenders would require you to provide certain documents to verify and re-affirm your claim in the loan application. This includes your income-related documentsand property-related documents that you wish to mortgage. Make sure that you understand the documents requirements of the lender first and keep all the papers handy to avoid delay in the loan processing period.
- Pay off your dues
If you have an existing loan or if you have any impending credit card bills, you must pay off the dues first before approaching a lender for another loan. This is vital because any outstanding debts will make the lender wary of your repayment capacity, and the chance of your loan application rejected will be high.