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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FAQs
1. How much credit score is required for availing loan against property?
Ans. Loan against property applicants with credit scores of 750 and above usually have higher chances of availing loan against property and at lower interest rates. You can visit the site of various lenders to know their cut-off credit score for availing loan against property. Alternatively, you can visit various online financial marketplaces to compare the LAP offers set by various lenders based on your credit score.
2. Can I get a loan against property without income proof documents?
Ans. Lenders want to know the income details of their borrowers to evaluate their loan repayment capacity. In case of no income proof, some lenders ask their applicants to submit their bank statements to estimate their income and financial position based on their cash flows.
3. What is the maximum amount of loan that I can get on loan against property?
Ans. Lenders offer the loan against property amount based on the property value, loan tenure and repayment capacity of the borrower. The loan amount can go up to 75% of the market value of the property, depending on the lender and the credit profile of the borrowers.