Below are some common eligibility criteria for loans against property set by some top lenders. Let us take a look at them.
Loan Against Property Eligibility Criteria
| Particulars | Eligibility Criteria |
| Minimum age | 18 years (at the time of loan application) |
| Maximum age | 70 years (at the time of loan maturity) |
| Profession | Salaried or Self-employed professional/ non-professional |
| Income | Minimum Rs 25,000 per month |
| Work experience | For salaried: 2 years
For self employed: 3 years |
| Property type | Residential or commercial |
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Factors Considered by Lenders While Calculating Loan Against Property Eligibility
When evaluating loan against property (LAP) eligibility, lenders consider various factors to assess the repayment capacity and creditworthiness of the applicants. Here are the key factors that lenders consider when evaluating the eligibility for loans against property:
Income and occupation profile
A higher income indicates a higher capacity to repay the loan. This further means lower risk for lenders. Salaried employees employed at MNCs, reputed private sector organisations, PSUs and the government and self-employed professionals like doctors, CA, traders, etc have higher chances of availing loans against property at lower interest rates due to their income stability and high-income certainty.
Age
The minimum age to apply for loans against property is usually 18 years, and the maximum age at the time of loan maturity is 70 years. The LAP repayment period usually stretches up to 20 years, with many lenders offering the retirement age as the maximum age limit. Therefore, younger applicants have higher chances of availing LAP for longer tenures.
Repayment capacity
Most lenders require the total EMIs of their loan applicants, including the EMI of their proposed loan, to be within 50-60% of their net monthly income. Opting for longer loan tenure can reduce your LAP EMI, so applicants with a lower loan against property eligibility can improve it by opting for longer loan tenure.
Property value
Lenders also consider the property’s age, location, legal status, title deed, approval from the local authorities, etc while determining the loan against property eligibility of their borrowers. Applicants failing to meet the property related conditions set by the lender would be rejected for loan against property.
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