Opportunities can knock at your door unexpectedly, be it a new idea for a business or your child’s foreign education. But should you pass on them due to a shortage of funds? Absolutely not! A loan against property can get you quick funds at low interest rates against your property as collateral. But like other loans, you will need to fulfil a few criteria to be eligible for it.
Now, loan against property eligibility requirements can vary depending on the lender you choose. However, there are a few non-negotiable requirements you must meet to be eligible for the loan. Let’s take a look.
Who Can Apply For Loan Against Property?
- Any salaried individual who is a permanent employee of an organisation can apply for this loan. The organisation can be a:
- Public Sector Undertaking
- Government Undertaking
- Multi-national Company
- Listed Public Limited Company
- Well-known Private Limited Company
- Self-employed individuals like chartered accountants, doctors and architects, filling regular Income Tax returns, are eligible for a loan against property.
- Individuals owning businesses and partnership firms can also apply for the loan.
What Are The Eligibility Criteria To Apply For Loan Against Property?
Property Parameters: The property you are mortgaging should be legal and have all the required government approvals. It can be a residential, commercial or industrial property. Financial institutions will decide the loan to value (LTV) on the property’s current market price.
Applicant’s Age: The minimum age requirement is 21 years. An applicant’s age can affect the tenure and interest rates of a loan against property. You can be a maximum of 60 to 70 years by the time of your loan maturity to be eligible for the loan.
Applicant’s Income: Your regular income will determine your repayment capabilities. A lender will assess your minimum income and debt obligations before finalising the loan amount. Most lenders require you to earn at least Rs. 3 l.p.a to be eligible for this loan.
Work Experience: While the minimum work experience required will depend on the lender’s requirements, many financial institutions ask for more than two years of professional experience to apply for a loan against property.
Credit Score: Although a loan against property will not require a minimum credit score, lenders look at it to gauge your repayment history with other loans and credit cards.
What Are The Documents Required To Apply For Loan Against Property?
Financial lenders ask for the documents below to process your loan:
- KYC documents like Aadhar, Address proof or Signature proof
- Income proof such as income tax returns or salary slips. Non-individual applicants can submit audit documents, income tax returns and other financial reports for loan applications.
- Bank Statement for the last six months.
- All the documents of the property you want to mortgage.
- Loan application form of the lender.
If you match the eligibility criteria and all the required documents are in place, your loan application process will be a smooth ride.
So, unlock the financial potential of your property to pay off your other dues in time. Get started on your research and find the perfect lender for your loan against property.