As against several high-value credit options available today, loans against properties today attract relatively low rates of interest. Such affordability combined with welcome policy changes from the regulators makes these loans an attractive funding option for many across the borrowing spectrum. Availing a loan against a property is equally easy and convenient these days as lenders provide have enabled online processes for the purpose. It has well made these loans more accessible than ever too.
The eligibility criteria and paperwork needed to avail of the mortgage loan are simple too, involving only a few crucial personal, professional, and financial aspects. Let’s find out what are the requirements you would need to fulfill to avail a loan against property.
Eligibility Criteria for Loan Against Property
When availing a loan against properties, borrowers need to fulfill standard requirements based on the following aspects, some of which can differ for salaried and self-employed individuals.
- – Age
- – Income Source
- – Property value
- – Fixed monthly income
- – Stability of occupation
- – Citizenship as well as residential status along with their stability
For the last criterion, both applicants need to be residing Indian citizens with stability of not less than one year. Further, both of these monthly incomes should meet a set benchmark as per their city of residence. As for a salaried applicant, the following requirements need to be fulfilled.
- – He/she must be between 21 and 55 years of age.
- – Applicant must be employed with a public/private company or an MNC to avail funds.
- – He/she should be working with the current employer for not less than 6 months and should carry a total experience of not less than 1 year.
- – He/she must also own a property with a value exceeding the threshold determined as per the city of residence.
- In the case of self-employed individuals, the following requirements must be met.
- – Age must be between 25 and 60 years.
- – The business of the applicant must be at least 3 years old.
- – Just like a salaried individual, a self-employed applicant must also own property of a certain value as per his/her city of residence.
Once you have met the necessary eligibility requirements as per your occupation, you can proceed to apply for your loan against properties.
Steps to Apply for the Loan
You can apply for a property loan both online and offline. While the offline process requires you to visit your lender branch to complete the application form fill-up, you need to complete the following few steps only to apply online.
Step 1: Visit the official website of your financial institution.
Step 2: On the home page, scroll for the ‘Products’ or ‘Loans’ section.
Step 3: From the drop-down visible, click on the ‘Loan Against Property’ option.
Step 4: On the new page you are redirected to, choose the ‘Apply now’ option, which should open the online application form for you.
Step 5: Proceed to fill in the application form with your personal, financial, and occupational detail.
Step 6: Recheck the steps for accuracy and provide the loan amount you choose to avail along with a suitable tenure.
Step 7: Complete your application by submitting the form online.
Once you have submitted your application form, a lender representative will contact you for identity and address verification. Next, you will need to submit all the loan against property documents required to the representative either the lender branch or when they visit your address for document collection if such a facility is available. Some lenders also allow for online document submission. For that purpose, you would need to keep all the necessary documents handy before applying so that the process is completed without any hassles.
Documents Required for Loan Against Properties
Following is the list of some common documents an applicant needs to submit when applying for a loan against properties.
- – Proof of identity
- – Proof of address
- – Income proof, which differs from the applicant’s occupation
- – Proof of property ownership
While these are the common documents required for a property loan application, the lender may ask you to submit additional documents depending on your borrowing profile.
Complete your application process while ensuring the accuracy of all details provided to experience a smooth loan against properties approval. Use tips like credit score improvement and previous debt repayment so that it reflects positively on your application, improving your chances of quick loan approval.
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