How to choose the right housing loan for yourself?

Having a house is an aspiration for most working-class people in India. In the metropolitan and cosmopolitan cities, most people need to take loans from banks or housing finance companies that offer loans for housing. But such lenders don't merely provide loans for several other purposes.

Here is a look at the different housing loans you can take from Shubham Housing Development Finance Company.

Home loan:

The most popular and well-known category of loans is a home loan. One can take this type of loan to purchase either a new or second-hand home. At Shubham Housing Finance, we provide you loans based on your income.

Home Improvement loan:

It is a secured loan taken to undertake any renovations of your self-occupied property such as restructure, renovate, upgrade or rebuild your house. An individual can avail this loan depends on the cost of the renovation and your capacity to repay.

Loan Against Property:

A Loan Against Property is a convenient way to fund your business or meet your personal needs by using your property as collateral to get a loan. It is a credit availed by keeping your property as a mortgage with the lender. These loans usually have lower EMIs, easy to obtain, and have lower interest rates.

Shubh Yodha Home Loan:

This loan is dedicated to the frontline warriors who are battling against COVID 19 pandemic. With Shubham Shubh Yodha home loan, the frontline workers can look forward to a better home, with minimal documentation and affordable interest rate.

Shubh Vyapaari Loan:

Shubh Vyapaari Loan is dedicated to the small business owners to support their growing business needs and expansion of the current business. Shubham brings you a tailor-made loan product to suit all financing needs of a small business. This loan is given after taking the market value of the property and your income into consideration.

Depending upon your need, we provide you with the loans to help you fulfil your long-cherished wish of owning your own house. To know more about our loans, visit us at Shubham

How To Avail Loan Against Property Without Income Proof ?

 

Almost every one of us has had a financial crisis in our life at one point or another. As in such crucial times, we often think about where to finance or borrow the required amount of money on an urgent basis. During such times, your property can help you fulfil your needs and aspirations.

People take a loan against property for many reasons like to expand their business, education, study abroad, take a vacation, or for medical treatments.

Suppose you have a property registered under your name, then you can approach the lender asking for a loan against your property. The lender will assess the market value of your asset and will sanction the loan if the title is clear.

But the most crucial thing is that even if you submit your property documents as collateral still most of the leading banks in India will ask you for income proof as it determines the repayment capacity of the borrower.

However, if you do not have a formal income proof needed by banks, there is no need to worry. As now there are few housing finance companies such as Shubham housing finance, Aadhar housing finance, Awas housing finance which provides loans to the individuals who earn in cash income.

Generally, banks will not provide you with a loan if you are getting salary by cash, you are in a business where sufficient income proof is not available like small shopkeepers, suppliers, or any other profession.

Here in this article, we will discuss everything you need to know of availing a loan against property without income proof.

Keep the following factors in mind to avail loan against property without income proof. Read on to know more.

#Clear all your dues on time: 

If you own a credit card and pay all your dues on time, then you are likely to get an approval for the loan instantly without submitting any income proof. Clearing off debts not only helps in lowering the interest rates but also reduces the debt burden.

#Maintain a good credit score:

A good credit score gives the lender a sense of assurance regarding timely payment of EMIs from your end.

Remember, a low credit score can lead to loan rejection or approval at a high-interest rate. On the other hand, having a good credit score makes you eligible for affordable loan interest rates and other beneficial terms with the lender.

# Keep a Check on your Savings: 

Maintaining an excellent monthly balance along with regular savings improves the chances of getting a loan against property approved.

#Justify your income to your representative: 

In case of lack of income proof or ITR, you must specify your income source and why you do not have the necessary documents. Always make sure to provide the information in detail because the final decision is likely to depend on the information you provide.

#Apply with a Co-Applicant: 

Assigning co-applicant increases the chances of your loan approval quickly. If your mother, father, brother, son, spouse, or unmarried daughter is an earning member with valid income proof, you can avail home improvement loan with the co-applicant. In such a case, lenders will consider the repayment capability of your co-applicant while determining loan interest rates and the loan amount.

#Opt for a Lower Loan to Value: 

A loan to value is the percentage of the property’s market value offered as a loan by the lender. It is less of a risk for the lender, and for the borrower since less is being borrowed. Making higher down payments and availing a lower LTV improves your chances of getting the loan approved without income proof, and it posits positive borrower credibility.

#Provide income proof from other sources:

If you have an informal source of income such as rental income, fixed deposit interest income or income proof of any family member, then you too can stand a chance to get your loan approved.

Consider these pointers to avail the Loan Against Property at an affordable interest rate from Housing Finance companies like Shubham Housing Finance who are there to help people with informal income streams.  

Can You Get a Home Improvement Loan With No Income Verification?

Borrowing money without having an income proof is now possible. Many people think that it’s a daunting task to borrow money without proof of income because lenders want to know how much you’re earning.

There are numerous housing finance companies such as Shubham Housing Finance, Aadhar Housing Finance, Awas Housing finance, and many more that provide loans with no income proof. However, you may have to face things like high interest and short repayment periods. 

Understanding what your requirements and improving your credit score will enable you to get a decent loan without paying too much.

Keep on reading to learn how you can get a home improvement loan with no income verification:

#Clear all your dues on time:

If you own a credit card and pay all your dues on time, then you are likely to get an approval for the loan instantly without submitting any income proof. Clearing off debts not only helps in lowering the interest rates but also reduces the debt burden.

#Establishing a good relationship with your lender: 

Maintaining a good relationship with the lender is a wise strategy. Nurturing a healthy relationship with your lender increases the chances of your loan approval.

Trust goes a long way towards reducing the perceived amount of risks. The lender will need reassurance, especially if it is the first time working with you. They need to know they did the right thing by investing with you.

#Elaborate your income to your representative: 

In the case of lack of income proof or ITR, you must specify your income source and why you do not have the necessary documents. Always make sure to provide the information in detail. Because the final decision is likely to depend on the information you provide, thus determining your annual income as well as repayment capacity.

#Apply with a Co-Applicant: 

Assigning co-applicant increases the chances of your loan approval quickly. If your mother, father, brother, son, spouse, or unmarried daughter is an earning member with valid income proof, you can avail of a home improvement loan with the co-applicant. In such a case, lenders will consider the repayment capability of his/her co-applicant while determining loan interest rates and the loan amount.

#Improve Your Credit Score If Possible: 

A good credit score gives the lender a sense of assurance regarding timely payment of EMIs from your end. Remember, a low credit score can lead to loan rejection or approval at a high-interest rate. On the other hand, having a good credit score makes you eligible for affordable loan interest rates and other beneficial terms with the lender.

Anyone that’s looking to get a no income verification loan will need to improve their credit score because lenders will be relying on it to determine your financial eligibility.

 

If you don’t have an income but have a high credit score, lenders will be more confident in you paying back the loan than they would if your score is low and you don’t have income.

 

If you require one, you can start looking at these housing finance companies to see what options they offer. Consider these pointers to avail the loan at an affordable interest rate to repay them with ease. We encourage you to start building your credit score before applying for a loan. This will allow you to get loans with better terms and you might even be able to borrow more.