You can easily get a LAP if you show finances that are well-equipped to repay the loan. So, if you do not have income proof, you would need to explain how you plan to repay the loan.
You can present bank statements if you have surplus funds or instruments like insurance papers, investments, etc., which provide some assurance to the bank. Moreover, the lender may ask you to discuss the lack of income sources and whether you plan on remedying that.
Chances of securing a low interest rate become dim without proper income proof. An income proof assures the lender that you are in a position to repay. However, it is possible to get a loan without but at a higher interest rate.
For any loan, the lender needs to be confident that they aren’t issuing bad loans. A bad loan is essentially one that doesn’t get repaid as per the schedule and results in losses for the lending institution.
Therefore, the lender uses applicants’ credit scores to assess how likely they will repay the loan. This score is derived using their historical credit payments. It is not that those with poor credit ratings do not get loans. They do, but at an expensive rate of interest.
At Kotak, the interest rate for a loan against property can be as low as 9.25% per annum.
Like individuals, businesses also need to offer professional stability and financial disposition deemed fit as per their principal amount. SMEs should furnish business records for the past 3 years and profits for the last 2 years from the date of application.
It usually takes 21 business days for any bank to process and sanction a LAP. When loans get approved in minutes nowadays, due diligence is always necessary when a property is involved.
The land records are tallied with the sub-district registrar and further checked with the development authorities to confirm the applicant’s ownership. However, we are always willing to speed up the process for applicants with valid emergencies.