It is rightly said that a dream has no age, and it is never too late to realise it in real life. Even if you are a senior citizen and have retired, you might need funds for different expenses in life, such as your child's wedding, world travel, or medical treatment. While many think there is no option for senior citizens, a Loan Against Property can be right for pensioners and self-employed individuals up to 75 years. Continue reading to know more about this loan option and learn how to get approval quickly.
Significance of Financial Stability After Retirement
Financial stability is a crucial part of retirement planning. Most importantly, it helps you command respect in the family and society. Moreover, it contributes to your mental and physical well-being by keeping stress at bay. With financial stability, you can also handle your family dynamics better, as you can build stronger relationships with your children and loved ones. Furthermore, it allows you to invest in lucrative plans and schemes, ensuring you lead a comfortable and happy life with respect even during retirement. You don't need to rely on your relatives’ charity or kindness during your golden years.
All you require is a residential or commercial property as collateral and regular income through a side business or pension as income proof to be eligible for a Loan Against Property for senior citizens.
Features of Mortgage Loan for Pensioners
As a senior citizen, you can seek a Loan Against Property (LAP) if you need urgent funding. Since the repayment tenure is up to years, you can repay the borrowed amount comfortably. Here are a few features of LAP:
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Attractive Interest Rates:
LAP interest rates are affordable, allowing you to divide your expense into EMIs while leaving your retirement savings untouched.
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Money into Account Instantly:
No more waiting for loan approvals and disbursals. Receive your approved loan amount in your bank account instantly after approval.
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Big Value Loan Sanction:
Hero FinCorp provides as much as 75% of your collateral value as a Loan Against Property for senior citizens in India. That means you can boost your desires and cover expenses without touching your retirement funds.
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Floating Interest Rates:
A LAP for senior citizens is linked to external benchmarks so you can enjoy smaller instalments under favourable market conditions.
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Digital Monitoring:
Now, you can monitor your EMI schedules and loan development through the Hero FinCorp website or loan app.
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Convenient Repayment:
A Mortgage Loan has flexible tenure, allowing you a buffer period to plan out the EMIs and easily repay the debt.
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No Physical Contact:
New-age NBFCs like Hero FinCorp allow you to apply for a Mortgage Loan online anytime, anywhere.
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Higher Age Requirement:
The easy mortgage loan eligibility conditions at Hero FinCorp allow pensioners and senior citizens to apply for a loan up to the age of 75.
Benefits of Taking a Mortgage Loan for Senior Citizens
Here are a few benefits that self-employed senior citizens and pensioners can enjoy by obtaining a Loan Against Property for senior citizens:
- Since LAP is a secured loan, its interest rate is lower than unsecured loans and credit cards.
- After obtaining a Loan Against Property, you can use the loan amount for various purposes, like medical treatments, children’s higher education or wedding, travelling, etc.
- The LAP prepayment charges are minimal. So, you can reduce your interest burden with a loan prepayment as the finances allow.
- A mortgage loan for pensioners has flexible eligibility criteria, allowing even individuals with low credit scores to avail of the loan.
- With minimal documentation, easy digital application, efficient customer service, and quick loan approval, Hero FinCorp offers a hassle-free loan against property for senior citizens in India,
While looking for a Loan Against Property, you must check the eligibility conditions before proceeding with the application process, as it will minimise the chances of rejection. Use an eligibility calculator to check your LAP eligibility.
Tips To Improve Your Chances of Approval
The LAP loan eligibility conditions remain the same for all, including income, financial obligations, credit history, assets, etc. However, fulfilling the criteria becomes more challenging after retirement, especially in terms of income. So, here are a few suggestions to improve your chances of getting a mortgage loan approval post-retirement:
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Apply for a Smaller Loan Amount
Smaller loans have reduced EMIs that retirees can easily serve. Therefore, while looking for a senior citizen Loan Against Property, keep the loan amount to the minimum to minimise the EMI payments. That way, you can pay your monthly EMIs conveniently. Ideally, the monthly EMI amount should not exceed 60% of your monthly pension amount.
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Provide a High-Value Collateral
Provide high-value collateral, such as a residential or commercial property, against the loan. Providing high-value collateral against a small loan amount increases the chances of easy approval.
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Close Other Loan Accounts
You must have enough disposable income to repay the loan. Multiple loans mean more debts and liabilities, making it challenging to repay the EMIs on time. They also affect your mortgage loan eligibility. Therefore, consider closing other loan accounts before applying for a new mortgage loan for pensioners. Moreover, keep your debt-to-income (DTI) ratio low and your credit history exceptional to attract easy LAP approval.
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Maintain a High Credit Score
A credit score is a vital factor that determines mortgage loan eligibility. Maintain a high credit score above 700 to show financial discipline and attract easy approval.
Steps to Apply for a Loan Against Property for Senior Citizens
Follow these steps to apply for a LAP for pensioners:
- Check the LAP eligibility criteria and ensure you can fulfil them
- Use an EMI calculator to figure out the best repayment schedule
- Fill out an online application form by providing the required details
- Submit all the necessary documents
- Get approval after thorough verification
- Accept the loan offer to get quick disbursal
With a low DTI ratio, excellent credit score, and a solid financial portfolio, getting a Loan Against Property for pensioners is possible. However, before applying, checking and satisfying the eligibility criteria is worthwhile. With a Loan Against Property for senior citizens from Hero FinCorp, nothing can stop you from fulfilling your dreams at any age.
Conclusion
A Loan Against Property provides a viable option for senior citizens and pensioners to access funds for various needs and aspirations. Hero FinCorp offers attractive features such as affordable interest rates, quick disbursal, high loan value, flexible repayment options, and digital monitoring. With minimal documentation and easy online application, obtaining a mortgage loan becomes hassle-free. By following tips to improve eligibility and maintaining a good credit score, senior citizens can enhance their chances of approval. Hero FinCorp ensures that age is not a barrier to realizing dreams, providing financial support and empowering senior citizens to lead a comfortable and fulfilling life.
FAQ
Q: How much loan can a senior citizen get?
The loan amount a senior citizen can get through a Loan Against Property depends on factors such as the value of the property offered as collateral and the individual's repayment capacity.
Q: What happens if a loan against property is not paid?
If a loan against property is not paid, the lender has the right to take legal action and initiate the process of recovering the outstanding amount by selling the property used as collateral.
