When a customer applies for a Loan Against Property, the financial lender takes into consideration the eligibility of the applicant. Some of the factors that are taken into consideration with regard to the eligibility of the applicant is his/her age, nature of employment, income of the individual, and the value of the property. Based on the aforementioned factors, the financial lender will either approve or reject the Loan Against Property application of the individual.
Listed below in the table is the general eligibility criteria set by financial lenders offering a Loan Against Property:
|Minimum Age limit||18 years – 33 years|
|Maximum Age limit||65 years – 70 years|
|Employment Status||Salaried or self-employed individual|
|Minimum Income||Rs.1.4 lakh p.a.|
|Work Experience||Minimum experience of 1-5 years|
|Interest Rate||9.80% p.a. - 16.50% p.a.|
|Maximum Loan Amount||Up to Rs.25 crore|
|Credit Score||CIBIL score of 750 or more|
|Repayment Tenure||15-20 years (Maximum)|
Listed below is the general eligibility criteria set by top financial lenders:
|Bank/Lender||Age Limit||Loan Amount||Work Experience||Minimum Income|
|State Bank of India||The loan should be liquidated before the eldest borrower reaches the age of 70 years old||Up to 7.5 crore||As per the terms and conditions set by SBI||Rs.25,000 per month or Rs.3 lakh p.a.|
|ICICI Bank||Minimum: 25 years old Maximum: 65 years old or age of retirement||Up to Rs.5 crore||As per the terms and conditions set by ICICI Bank||As per the terms and conditions set by ICICI Bank|
|HDFC Bank||Minimum: 18 years Maximum: 25 years||As per the terms and conditions set by HDFC Bank||As per the terms and conditions set by HDFC Bank||As per the terms and conditions set by HDFC Bank|
|Bajaj Finserv||33 years old – 58 years old for salaried individuals 25 years old – 70 years old for self-employed individuals||Up to Rs.3.5 crore||As per the terms and conditions set by Bajaj Finserv||As per the terms and conditions set by Bajaj Finserv|
|Capital First||Minimum: 23 years Maximum: 70 years or retirement||Rs.5 lakh – Rs.10 crore||Minimum 2 years' experience for self-employed individuals Minimum 5 years' experience for salaried individuals||As per the terms and conditions set by Capital First|
|Tata Capital||Minimum: 25 years old Maximum: 60 years at maturity of the loan||Rs.10 lakh – Rs.3 crore||Minimum 3 years' work experience||Minimum of Rs.2.4 lakh p.a.|
|Axis Bank||Minimum: 24 years old Maximum: 65 years old at maturity of the loan||Rs.5 lakh – Rs.5 crore||As per the terms and conditions set by Axis Bank||As per the terms and conditions set by Axis Bank|
|Kotak Mahindra Bank||Minimum: 21 years old Maximum: 65 years at maturity of the loan||Rs.10 lakh – Rs.5 crore||Should be making profits for the last 2 years||Minimum of Rs.1.44 lakh p.a.|
|IIFL||Minimum: 18 or 21 years old* Maximum: 65 years old||Up to Rs.10 crores||As per the terms and conditions set by IIFL||As per the terms and conditions set by IIFL|
|Edelweiss Financial Services Ltd.||As per the terms and conditions set by Edelweiss Financial Services Ltd.||Up to Rs.25 crore||Minimum 5 years in business||Minimum of Rs.2 lakh p.a.|
Listed below are several factors that affect the Loan Against Eligibility:
The loan applicant has to meet the age criteria when applying for a loan against property. In most cases, the applicant should be a maximum of between 65 years to 70 years by the maturity of the loan scheme.
The applicant has to prove that he/she has a regular income to ensure that the loan will be repaid.
The value of the property will decide the loan amount that can be availed.
Financial lenders will take into consideration the CIBIL score of the individual to ensure that he/she has a decent repayment track record.
The job stability of the salaried or self-employed individual plays a role in deciding the eligibility of the applicant.
Listed below are the general documents that will be requested by the financial lenders to be submitted:
Loan against property refers to the amount you can borrow against your property. Banks provide loan against both commercial and residential property. Also, you can take a loan against your rented residential property, self-occupied property or vacant property. It could be piece of land or a house. The amount received as loan against property can be used for acquiring new property or you can use the same amount to take-over of your existing loan by refinancing. It is a kind of secured loan where the border use his/her property as collateral.
The eligibility criteria for loan against property may vary from bank to bank. Listed below are the common eligibility conditions that a borrower needs to fulfill in order to get a loan against property:
By using a loan against property eligibility calculator, a borrower can calculate your eligibility for Loan against Property . The calculator will help you know you eligibility in various cities in India. While determining loan against property, banks mostly look at the following factors - property value, repayment capacity, total assets and liabilities, age of the applicant and his/her qualifications, number of dependants, spouse’s income, and legal and technical aspect of your property. Based on your eligibility, bank will decide how much amount you would receive as loan against property.
Example: The State Bank of India provides a minimum of Rs.25, 000 and a maximum of Rs.1 crore as loan against property. The bank pays these amounts based on the following conditions:
A borrower can get up to 60% of the total market value of his/her property as loan against property.
*** Loan against property amounts are subject to change from time to time.
The repayment procedure for loan against property is almost same with home loan repayment procedure. Many leading lending institutions accept both part repayment and full repayment. Also, many financial institutions does not charges any extra fees on prepayment. You repay your loan against property in Equated Monthly Installments (EMIs) which comprise your contribution towards the principal amount as well as interest payment. Your EMIs will start immediately after you accept the full disbursement.
1. Can I avail a Loan Against Property to buy another house?
No, it cannot be availed to purchase another house but can be availed for other personal reasons such as funding a travel, education, marriage, etc.
2. Why choose a Loan Against Property rather than a regular personal loan?
The loan amount that you can avail will be much more and the interest rate will be much lower than a regular personal loan.
3. Can I take a Loan Against Property if my house is on litigation?
It is highly unlikely that you can, but if the property is in your name then it could be possible.
4. What is the most important factor financial lenders take into consideration when checking the eligibility of an applicant?
The value of the property and property documents is possibly the most important factor.
5. How will I know if my application is approved?
Using the application reference number, you can check the status of your application on the website of the lender. In addition, as soon as the application is approved, the bank will send you an SMS or an email confirming the approval.
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