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These days, a considerable number of people have started applying for a home loan against property in Varanasi which is popularly known as LAP. And guess what, it has become more seamless than ever. Thanks to technological advancement. However, there can be times when your application can get rejected. In order to prevent that from happening, Bhumi Finance is here with five “not-to-forget” essentials that have to be taken care of in the case of a loan against land in Varanasi at any bank or any random financial institute. Read till the end.

The financial value of the property.
40 lacs? Nah, it will be around 50. Could be 55 too though. Well, this is not the time to play with numbers. Before you apply for a home loan against property in Varanasi, it’s important to be well-versed with the actual figure that represents the monetary value of the property you will take the loan against. It doesn’t matter whether the property is of a residence or has been put to commercial use. All you need to know is its monetary worth. 
This is also important because the loan amount sanctioned cannot be more than that of the monetary value of the property. Banks as well as financial institutions always try to extend loans against property at an amount that is about 70-80% of the monetary worth of the property. If your loan requirement is higher than the property’s cost, then other financing options have to be considered in combination.
So, it is imperative to be aware of the financial value of the property.

Income of the applicant.
A loan against land property or LAP depends on the mortgage loan approval that is determined by the income of the applicant. It is to be noted that the income of the applicant is a reflection of his/her repayment ability. On this very basis, banks and financial institutions also draw the EMI scheme’s suitability as well as the repayment tenure. The repayment tenure spans up to 15 years. You must draw a comfortable income in order to take care of loans against property payments.
The reason why banks are serious about the applicant’s income status is that a person with regular income will be able to pay the EMIs more consistently than default on its payments. So the bank does not have to worry about selling the pledged property to recover the LAP amount, which would otherwise take intensive time and effort.

Who is your co-applicant for a mortgage loan?
There can be instances where you alone cannot fulfill the income or repayment capacity essential for getting a home loan against property in Varanasi sanctioned. In such a case, one is supposed to show up with a co-applicant. The loan-providing institute will run a check on the co-applicant to confirm if he/she and you together can repay the mortgage loan against land in Varanasi amount or not. Make sure that you choose your co-applicant wisely.

Who is/are the owner/owners of the mortgaged property?
In cases where there is only one owner of the property, an applicant may not find enough difficulty in getting the LAP sanctioned. But when there is more than one owner of the mortgaged property, and we do not have a consensus, then the application can land into troubled waters. 

The fees involved.
Many times, banks, or other financial institutions charge miscellaneous fees including pre-closure charges, agent costs, loan against land property processing fees, etc. So, it is recommended that before sealing the deal, do clarify how much you have to pay apart from the LAP interest charges.

So, these were the five “not-to-forget” essentials that have to be taken care of in the case of a loan against plot of land at any bank or any random financial institute. Wish to get the best interest rate for your LAP? Visit Bhumi Finance now at https://bhumifinance.com/.