Whether you need to pay for your child’s overseas education, meet the costs of a wedding or any other big-budget requirements, tailor-made loans become the convenient solution. One of these loans that have the potential to meet several such needs is a loan against property.
You can avail it by meeting simple loan against property eligibility criteria. As it is a secured loan, lenders tend to relax on the eligibility. They calculate the current market value of the existing property to be mortgaged and sanction a percentage of that value as the loan.
This percentage is known as a ‘Loan to Value or LTV. The lender of your choice will determine the LTV as per your repayment capability as the borrower. A higher LTV will mean you have a higher loan amount.
You can enjoy LTV as high as 75% if you are highly capable as a borrower. So, when choosing a lender, you must check the maximum LTV they can sanction as per your loan against property eligibility loan against property eligibility.
Here is an overview of the basic eligibility criteria lenders ask for to sanction a loan against property in India.
Loan Against Property Eligibility Criteria
Salaried & self-employed individuals both can avail loans against property. The eligibility criteria they need to meet may differ across financial institutions. Generally, they include –
- Eligibility Criteria For a Self-employed Person
- Must be between 25 and 70 years of age.
- Should be a business person or a professional with a regular source of income and relevant proof of the same.
- Eligibility Criteria For a Salaried Person
- Must be a salaried employee with a private company, an MNC or a public company.
- Should be between 33 and 58 years of age.
Sufficiently meeting such loan against property eligibility criteria may help you with quick approval and disbursal.
Also, as mentioned above, you must own a property, be it a residential house, commercial space or land to avail this loan. Since the property documents are kept in the form of mortgage, you need to keep the documents ready too. Along with that, the lender will also require you to furnish essential loan against property documents required like identity proof, address proof, proof of income, etc.
Also, to utilise the loan amount at its best while making the most of its attractive features, check the benefits it brings along.
Benefits Of Loan Against Property
- High-value Loan Amount From One Credit
Loans against property offer substantial amounts. You do not need to look for tailor-made loans of small amounts to meet various needs. All your financial requirements can be met with Loans Against Property as high as Rs. 3.5 Crore provided by lenders such as Bajaj Finserv.
They also provide pre-approved offers on such loans that make the process of availing finances quick and easy. Pre-approved offers are available on secured loans like home loans, as well as on unsecured loans such as personal loans, business loans, as well as on many other financial products.
- An Extended Tenor For Convenient Repayment
Loan against property is a long-term loan that can be availed for up to a maximum of 20 years. Long tenors mean you can plan your current and future finances efficiently while paying affordable EMIs. You may use different ways to effectively repay your existing loan to meet your monetary goals earlier.
- Affordable Rates Of Interest
Being a secured credit, loans against property come with a considerably lower rate of interest, which lowers your cost of borrowing. So, once you meet loan against property eligibility, you can avail this loan at feasible interest rates and repay easily over time.
Additional Read: What are the Fees and Charges for Loan Against Property?
Loan Against Property Application Procedure
With a simplified online application procedure, it is now easier than ever to apply for a loan against property. Fill in the application form and submit the documents required to avail it.
Avoid the myths about loan against property and plan your finances easily over time. Fulfil the easy loan against property eligibility to avail better terms of repayment and higher loan amounts other than faster disbursals as well.