How To Apply For A Loan Against Property?

A loan against property is a secured credit facility. Individuals need to mortgage their property with a financer; wherein the financier would advance a loan quantum based on the market value of the property.

You can apply for a loan against property by mortgaging a residential or commercial property or a plot of land. Ensure that your property is unencumbered before you apply. Depending on the financer, the percentage of the property value which you can avail as a loan might vary.

A loan against property does not come with any end-usage restriction which makes it ideal to meet any big-ticket expense such as debt consolidation, wedding, child’s abroad education, etc.

You can apply for a loan against property upon satisfying certain eligibility criteria.

Eligibility Criteria to Apply for a Loan Against Property

The eligibility criteria for a mortgage loan might vary with respect to financial institutions. However, there are certain criteria which are followed by reputed financing companies.

The eligibility criteria for salaried individuals to apply for a loan against property are –

• The applicant’s age should be within the range of 33 – 58 years.
• The applicant should be employed with an MNC, in the public sector, or in a private company.

The eligibility criteria for self-employed individuals to apply for a loan against property are –

• The applicant should be aged within 25 – 70 years.
• The applicant should have a steady and regular source of income.

Additionally, you also need to have a substantial credit score to be eligible for a loan against property.

You would also need to submit a handful of documents during the loan against property process for application. Ensure you have the documents handy to facilitate a faster approval process.