Banks/NBFC’s have certain criteria which need to be fulfilled to avail a loan against property. There can be more or less documents depending on the bank. Although the below list is generic in nature and will help you keep the documents ready…
- The borrower must be an Indian citizen.
- One of them main factors of eligibility lies in the value of your mortgaged property.
- The said property must be existing and not under construction. It also should be under the loan applicant’s name. There is a possibility to take a loan as co-applicants if the said property is registered under multiple names.
- A bank/NBFC provides a loan easily to those who have professional stability. They also check the savings history of the borrower for the past year.
- Credit history plays an important role in availing any loan. The borrower should have a good credit history at his/her disposal. If they also have a good record of timely repayments of loan EMI and credit card bills then it gets easier to get a loan.
- It helps to have a good relationship with the bank. Yes, these help you to get the loan quicker. Also there is a possibility that they will exempt hidden charges and reduce processing fees.
Salaried applicant:
For Salaried applicant, there is an additional criterion as mentioned below;
- The applicant is a current and permanent employee with the government or a private company.
- The applicant also should be an employee with the existing private company or government for minimum 3 months to apply for a loan.
- There is an option to get a loan against property transfer without top up. This can only be given to a salaried applicant above 25 years.
Self employed:
The category of self employed individuals is further divided into two:
Self-Employed Professional: Doctor, architect, chartered accountant, etc.
Self-Employed Non-Professional: Trader, commission agent, contractor etc.
The additional criterion is mentioned below;
- To get a LAP transfer without top up for a professional applicant, he/she must be a minimum of 25 years old and the maximum age is up to 65 years.
- The applicant must be involved in his/her business since 3 years at least.
- The applicant also must be up to date in filing income tax returns regularly.
The said property which has to be mortgaged must also be eligible to be kept as collateral in the Bank/NBFCs. The property eligibility criterion is mentioned below;
- The said property which will be kept as collateral must not be involved in any legal matters.
- One more thing that the applicant must be cautious about is that the property should have clear titles registered in the name of the applicant. No spelling errors are permitted.
- It is very beneficial for the applicant when the market value of the said property is high. This is because the loan amount you get depends on the current value of property. Hence more the property amount, better will be the loan amount.
- Also, while availing a LAP, the said property must not already have been kept as a mortgage with any other financial institution while applying for a loan.
Check your eligibility to get a loan against property today!
