When you have your property and need some funds, you don’t have to worry about availing money from your friends, relatives and other sources. It is because the loan against property is offered at a lower rate as you pledge your property.
Also, if you don’t have a robust CIBIL Score, availing any other loan option other than the loan against property may not help you get an approval.
Since the loan against property is a secured option and the property is the collateral, a lender may overlook your average CIBIL Score. Hence, you may get the loan approval.
But, what if you are told that you can make the most of the loan against property application to boost your plunging CIBIL Score? Yes, that’s possible!
Go through this post, and you will come to know some easy steps to do it.
Steps to boost the CIBIL Score with a Loan Against Property Application
- Maintain a Strong Employment History
If you have maintained a consistent employment history, it could help you improve your CIBIL Score in a big way. The only thing that you need to do while you are repaying the loan is – do not change your job. But, what if you selected a longer loan tenor of say 10 years? Should you not change a job till then? Go through the answer in the next point.
- Go for a short Tenor
If you want to improve your CIBIL Score with a loan against property application, you should ensure to go for a smaller tenor. Going for short tenor will give you many benefits. You will be able to pay off your loan quickly. You can get back your property to pledge it again for any other needs. You can save yourself from paying compounding interest which is charged for opting for a longer tenor. It will also boost your Credit Score as your repayment history will also improve with a smaller tenor.
- Opt for some Prepayments
Even if you can’t opt for the short tenor, you can try to make some prepayments towards your loan against property. It will assist you to reduce the principal and interest. It will help you pay smaller EMIs and pay off the loan quickly. Being able to repay the loan earlier even by some months will enhance the Credit Score.
- Consolidate your Credit Cards and other Loans
Before you go for the loan against property application or repay it, it’s good to consolidate your existing credit cards and other debts. This way, you would be in a position to give a boost to your CIBIL Score. You can also use the loan against property amount to consolidate your other debts to improve your score.
Some smart tips to help improve your CIBIL Score while you are availing or repaying the loan against property should help you enhance it easily.
Bajaj Finserv presents some pre-approved offers on loan against property application, home loans, personal loans, business loans, and EMI finance and a lot many. They are created to help a borrower ease off the loan procedures and make it fast.
To check out your pre-approved loan offers, all that you need to do is share your basic details such as name and mobile number!