What is Eligibility for Loan Against Property?

If you have a property and you are in need of urgent funds, you can apply for a loan against your property. This loan will help you get instant funds to manage the situation. In case of emergencies like medical treatment or school fees, you can conveniently solve the problem by getting quick and sufficient funds. While applying for a loan against property, there is a certain loan against eligibility criteria that you will have to fulfil. You will also have to submit documents pertaining to your property so that the lender can know about the market value of it and can give you funds accordingly.

Since this is a secured loan, interest rates are generally not that high. The interest rate you receive on such a type of loan is between 8% to 25% per annum. The higher the market value of your property, the higher the loan amount you receive. The repayment tenure of a loan against property is quite convenient. You get flexibility in scheduling your monthly interest payment according to the due dates.

Eligibility for loan against property

Before applying for a loan against property, you should be aware of the loan against property eligibility criteria. Below is the list of criteria for your convenience.

• You should be an Indian resident to be eligible for a loan against property.
• You should be at least 18 years old to procure the loan.
• The maximum age to apply for a loan against property is 70 years. Few banks can even have 65 years as the maximum age to apply for a loan.
• To get a loan against property, you have to be a salaried person, professional, self-employed, or income tax assessee. If you are a Non-resident Indian with properties in your name or in the name of your spouse or children, you are eligible for applying for the loan.
• Your minimum monthly income should be at least Rs. 25,000.

Documents required

• Always remember to keep your documents handy before applying for the loan. This will help you save time and effort. Here is the list of required documents for applying for a loan against property.
• You should carry a completed application form with you.
• You will require at least 3 photographs (passport size) for the application process.
• As proof of identity, remember to carry photocopies of pan card, driver’s license, passport or voter ID card. This is to ensure you are an Indian citizen.
• As proof of address, you will have to submit your electricity bill, driver’s license, passport or Aadhar card.
• You will have to submit your employer’s card so that the lender is aware of your employment situation.
• Documents pertaining to the property against which the loan is taken will have to be provided to the lender. These documents include maintenance bills, property tax receipts, registered agreement of the builder, and approved plan copy.
• You will have to submit the last 6 month’s account bank statements and previous or current loan account statements for the last 1 year.
• Both salaried and non-salaried applicants will have to provide income proofs.

How to apply for a loan against property?

There are two ways of applying for a loan against property - online and offline. If you want to apply through offline mode, you can apply for this loan by visiting the nearest branch of a bank or a financial company. You will be assisted by a relationship manager with the process of application. Make sure to carry all the necessary documents with you. They will ask you to fill out an application form and submit the required documents. As soon as the form and documents are verified, you will receive the loan amount in your bank account.

If you plan to apply online for a loan, you can follow the below steps for a faster application process.

• Visit the website of the bank or financial institution and select the online form for a loan against property.
• Fill in all your personal and property details.
• Enter your income and financial details as well.
• Submit additional documents along with the application form if required.
• Finally, submit the application.

After the successful submission of the application form, a support team will contact you to help you with the further process of acquiring a loan. They will verify all your documents and sanction the loan amount once approved. The loan amount will be immediately credited to your bank account.

With an easy documentation process, you can acquire instant funds, especially if you urgently need them. With the help of a loan against property, you can get large funds in a short period. You can easily pay off this loan with its low-interest rate and long repayment tenure. This way you can save your long-term savings and use them for future investments.