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    Loan Against Property Eligibility

    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)

    Loan Against Property Eligibility Criteria set by Top Lenders

    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.

    Factors that affect Loan Against Income Eligibility

    Listed below are several factors that affect the Loan Against Eligibility:

    • Age of the applicant

    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.

    • Income of the individual

    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

    The value of the property will decide the loan amount that can be availed.

    • Credit score

    Financial lenders will take into consideration the CIBIL score of the individual to ensure that he/she has a decent repayment track record.

    • Work experience

    The job stability of the salaried or self-employed individual plays a role in deciding the eligibility of the applicant.

    Documents required to be submitted for Loan Against Property

    Listed below are the general documents that will be requested by the financial lenders to be submitted:

    • Identity proof – Aadhaar card, Passport, Voter’s ID card, etc.
    • Address proof – Passport, Ration Card, Driving License, etc.
    • Proof of income – salary slips, bank statements, etc.
    • Form 16
    • Property documents – Registration certificate, Sales Deed, Lease Agreement, Property Tax Receipts, Property Insurance Documents, etc.

    What is Loan against Property?

    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.

    Loan against Property Eligibility

    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:

    • Any salaried professional who is a permanent employee of an organization can apply for LAP.
    • Professionals like architects, chartered accountants, cost accountants, company secretary, doctors, engineers, dentists and management consultants can also apply for it.
    • Self- employed individuals who are income tax payers are also eligible for loan against property.
    • Bank will consider your total monthly income, how much savings and debt obligations you have before it approves your loan.
    • The eligibility for loan against property is also calculated based on value of your mortgaged property.
    • You should also have a good CIBIL score. Bank will track your previous loan and credit card bill repayment details.

    Loan against Property Eligibility Calculator

    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:

    • 24 times of the net monthly income of salaried professionals,
    • And 2 times of the net annual income of self-employed and others.

    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.

    How to repay Loan against Property

    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.

     

    Loan Against Property Eligibility FAQs

    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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