Loans against property are a special type of loan under which a borrower pledges their residential or commercial property as security in return for loan money. Some lenders also accept land as security. Since loans against property are backed by collateral, i.e. have security involved, lenders sanction these loans at low-interest rates. Loans against property are highly cost-effective and this is the primary reason behind their increasing popularity. Further, the loan money comes with zero restrictions. Borrowers can use the money as they like — they can use it to buy another property or a car, take a vacation abroad, fund a child’s education or a family wedding, consolidate debt, etc. The loan tenor involved is long enough to give borrowers ample time to repay the loan easily. 

Even though loans against property involve collateral, lenders are strict about borrowers meeting the set property loan eligibility criteria. They do so to ensure their financial safety as well as the financial safety of the borrower. Borrowers who do not meet the property loan eligibility criteria set by their lender either face loan rejection or get offered loans on highly unfavourable loan terms and conditions. Therefore, before beginning the loan against the property application process, borrowers must check their lender’s eligibility requirements for the loan and ensure they meet them. Doing this ensures quick approval and the borrower being better interest rates and higher loan sanctions. Let us now look at the eligibility criteria for loans against property. 

Loans Against Property Eligibility Criteria for Salaried Individuals 

For salaried individuals, the loan against property eligibility criteria varies from lender to lender. However, most lenders require salaried applicants to fulfil the following eligibility requirements to be eligible for a loan against property. 

• The applicant must be a residing citizen of India. 
• They must be between 23 and 65 years of age. Please note that the maximum age is always the age at the time of loan maturity and not the age at the time of applying for a loan. 
• The applicant must be employed with a reputed private or public-sector company and must be able to show at least 3 years of experience. 
• They must meet their lender’s city-wise income requirements and must be able to show a stable income. Here’s a tip: if you want to avail of a loan against property but do not meet your lender’s property loan eligibility criteria, you can consider mentioning additional sources of income or a co-borrower in your application. 
• They must have a CIBIL score of at least 750 or above.
• The property they plan to pledge as collateral must be free of any kind of dispute and tax liens. Further, the applicant must also be able to provide documents that establish complete ownership of the property. 

Loan Against Property Eligibility Criteria for Self-Employed Individuals 

Self-employed individuals planning to apply for a loan against a property must meet the following eligibility requirements. 

• The applicant must be a residing citizen of India. 
• They must be between 25 and 70 years of age. 
• The applicant must be able to show business profitability and at least 5 years of business vintage. 
• They must meet their lender’s city-wise income requirements and must be able to show a stable income.
• They must have a CIBIL score of at least 750 or above. 
• The property they plan to pledge as collateral must be free of any kind of dispute and tax liens. Further, they must be the rightful owner of the property they plan to pledge as collateral. 

Please note that eligibility requirements vary from lender to lender. Therefore, before the loan against property application process, borrowers are advised to go to their lender’s website and check their property loan eligibility requirements.