I am 42 years married and reside in Bidar. I have taken a loan of Rs 20 lakh against my property worth about Rs 70 lakh and am paying an EMI of Rs 24,000. I have a delayed track record of payment. I am looking at taking a top-up loan of Rs 10 lakhs as I need funds to scale up my business. Is there a possibility of getting this loan?
Banks/NBFC's consider your income, repayment behavior across the loans and valuation of the asset pledged you have already availedfor deciding your creditworthiness.All past loan repaymentsare recorded in your credit report. If you pay your EMIs on time your credit history will be good and you get a good credit score. Likewise, your credit history is adversely impacted by any delays or defaults on repaymentsand you get a bad credit score.Most institutions also provide best credit deals to applicants with better credit history and higher credit scores. 1. Lending norms and credit appraisal processes differ across banks/NBFC'sbased on their portfolio risk appetite and target customer profile. 2.While delayed track record of payments and unavailability of tax returns may not be viewed favorably while making lending decisions, some organizations may consider approving your loan based on other factors like business model, economic outlookand cost of the property which is pledged. You can always try with such institutions. However, it will be a costlier loan. It is always better to maintain financial discipline to avoid such difficult situations.