What is Loan Against Property Eligibility? Here’s a Guide
When it comes to borrowing funds, your best bet is to opt for a secured loan. This is because lenders enjoy better security which allows them to give you a high sanction at a low interest rate. A loan against property in India is perfect for big-ticket expenses, as it gives you the money you need without compromising on affordability. The trade-off is that you are required to pledge property. However, with responsible financial management, there is virtually no risk involved as the EMIs are relatively low thanks to the long tenor and low cost of borrowing.
By ensuring that you’re eligible for a sanction, you can easily get approval and access to the best loan deals. To get started, take a look at loan against property eligibility criteria that you should be aware of.
- Credit score at the time of application- Your CIBIL score is integral to your loan against property application because it gives the lender an insight into your finances. Lenders can gauge your creditworthiness and can judge if you are capable of handling large amounts of credit. Generally, for a loan against property, it is preferable that you have a CIBIL score over 750.
- Monthly income and annual earnings- Your monthly income is a direct indicator of your repayment capabilities. Lenders gauge your debt-to-income ratio and decide whether or not you are capable of handling the loan’s EMIs. It is advisable that you keep this ratio well below 50%, as lenders are less likely to lend to an individual who is already servicing large amounts of debt. Additionally, note that lenders require you to earn a minimum amount based on your city of residence. This varies from one lender to another, so check before you apply.
- Age- Your age is an important factor that determines your eligibility because a loan against property is a long-term financial obligation. Lenders prefer individuals between the ages of 33 and 58, as it ties in with your working years and in turn ensures that you’ll have a regular inflow of income to tackle repayment.
- Property details- To be eligible for a loan against property, you must own real estate in a city that your lender functions in. However, in order to get a suitable sanction, the market value of the property is taken into consideration. This includes its age, location and whether or not it is under dispute.
Meeting these criteria is vital to your application’s approval. Similarly, you must have the necessary documentation required to prove your eligibility to the lender and supplement your application.
Typically, the loan against property documents required are as follows.
- Personal identification: This includes your Aadhaar card, voter’s id, driver’s license, passport or PAN card
- Address proof: This includes electricity bills, utility bills or phone bills
- Proof of income: This includes salary slips of the past 6 months, bank statements of your salary account and certificate of employment
- Proof of property ownership: This includes title deed, sales deed, share certificate and latest maintenance bill
Following these pointers is sure to give you the best chance at approval. Additionally, when choosing a lender, scout for one that offers benefits to you without complicated procedures. The Bajaj Finserv Loan Against Property is one such option as it has relaxed eligibility criteria and offers multiple benefits. The doorstep service, for example, entails a representative coming to your home to assist you with loan processing. With this loan you can also get a sanction up to Rs.3.5 crore for a flexible tenor of up to 20 years, depending on whether you’re salaried or self-employed. A feature that sets this loan apart is the Flexi Hybrid feature that lets you borrow money from the sanction in parts, and you only have to pay interest on the amount you utilise. To enjoy all these benefits and leverage your assets fully, check your pre-approved offer online today!