How to Apply for Loan Against Property if I Have a Bad Credit Score? - Home Loan Stories

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09 JUNE, 2021

A Loan Against Property can help you avail a large amount of money to meet your financial requirements. It is a type of secured loan, wherein you can pledge your property as security with the bank to avail the loan amount. But, with a poor credit score, do you think you can get a Loan Against Property? Here’s the answer!

Loan Against Property for Applicants with Poor Credit Score

There’s no denying that your credit score impacts your home loan eligibility to a great extent. A high credit score of 750 or above can make your loan approval a hassle-free process. This is because lenders may consider you as a low-risk borrower with good repayment capacity if you have a high credit score. So, you must work towards improving your credit score before applying for any type of loan.

However, if you have a poor credit score, it’s still possible to qualify for a Loan Against Property. Since Loan Against Property is a secured loan, lenders will have the authority to seize your property in case you fail to repay the loan amount. As a result of this, lenders may choose to take a lenient view of your credit score while evaluating the loan application.

But, remember that even if the lender approves your loan application, you may be charged a high interest rate due to the poor credit score. On the other hand, a good credit score can help you avail Loan Against Property at a competitive rate and more favourable terms. You can improve your credit score by clearing outstanding dues, having the right credit mix, and decreasing your credit utilization ratio.

With us at Kotak Mahindra Bank, you can apply for a Loan Against Property easily through a hassle-free online application process. The amount availed through a Loan Against Property can be utilized for various purposes such as financing your kid’s higher education, starting a business, etc. Mentioned below are some of the important features of a Loan Against Property at Kotak Mahindra Bank.

High loan amount – You can avail a loan amount from Rs 10 lakh to Rs 5 crores depending upon your property’s value. It’s possible to avail up to 65% of the property’s value as the loan amount.
Long repayment tenure – You can opt for a repayment tenure of up to 15 years. This can reduce your EMIs significantly.
Attractive interest rate – If you have a good credit history, you can avail a Loan Against Property at an attractive interest rate. Furthermore, less prepayment charges and processing fees are some other advantages of availing Loan Against Property with us.

Before you apply for a Loan Against Property, ensure to check your eligibility by using an online eligibility calculator. The calculator uses details such as your monthly income, loan tenure, interest rate, other EMIs to determine your eligibility. Once you find out your eligibility and meet all the necessary criteria, you can avail a Loan Against Property.

Mention how the calculator helps

So, if you need a large sum to meet your monetary requirements, apply for a Loan Against Property from Kotak Mahindra Bank, today.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

How to Apply for Loan Against Property if You Have a Poor Credit Score?

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