Loans against property are an excellent way of arranging money in case of an emergency. Under this type of loan, a borrower pledges their residential or commercial property as collateral in return for loan money. Though the risk involved for the lender is minimized by the collateral present, lenders are still strict about borrowers meeting their property loan eligibility requirements to reduce the chances of loan default. The inability to meet the qualifying criteria leads to loan rejection. 

The eligibility requirements for a loan against property vary from lender to lender. However, most lenders require borrowers to fulfil these eligibility requirements to be eligible for a loan against property. 

Loans Against Property Requirements for Salaried Professionals

Salaried professionals must meet the following eligibility requirements to be eligible for a loan against property. 

• The applicant must be a resident citizen of India. 
• They must be between 23 and 65 years of age at the time of loan maturity. Please note that the maximum age is always the age at the time of loan maturity. 
• The applicant must be able to show a stable source of income. They must be employed with a public-sector company or a reputed MNC and must be able to show at least 3 years of work continuity. 
• Their CIBIL score must be at least 750 or higher. 
• They must be the rightful owner of the property they plan to pledge as collateral. 

Loan Against Property Requirements for Self-Employed Professionals 

Self-employed professionals must meet the following eligibility requirements to be eligible for a loan against property in India.  

• The applicant must be a resident citizen of India between 25 and 70 years of age at the time of loan maturity. 
• The applicant must be able to show a stable source of income. They must be able to show a business vintage of at least 5 years.
• Their CIBIL score must be at least 750 or higher. 
• They must be the rightful owner of the property they plan to pledge as collateral and must be able to provide all property-related documents as well as the other documents asked by the lender. 

If you are planning to apply for a loan against property, use a property loan eligibility calculator to understand the loan amount you qualify for. Applying for this loan amount or something lower will not only ensure quick loan approval but also better loan terms and conditions, such as low-interest rates and zero prepayment charges. Low-interest rates not only make loan EMIs more affordable but also reduce the total cost of borrowing the loan. 

Further, if you are planning to apply for a loan against property, make sure the property you are planning to pledge as collateral is free of lien or disputes. You must also be able to provide all property-related documents. The inability to do so can lead to your loan application getting rejected. Lastly, get your property assessed by an expert. They will tell you the exact market value of your property and this knowledge will most certainly help you make sure that you are getting the loan value you deserve and that your chosen lender is not undervaluing your property.