Owning a property and leveraging it to get funds can be a boon during any financial emergency. Be it a residential, commercial, or any immovable property, it can be pledged to avail loan against it. As this is a secure type of loan, it is easy to avail and carries a lower rate of interest than other credit tools. Having a longer loan repayment tenor also makes it a popular means of getting funds for business growth/expansion, personal use, or medical purpose. However, for this, the borrower must fulfill the loan against property eligibility criteria. These are some simple rules that a borrower must comply with to get their loan application accepted easily. Let us discuss them here.

Loan Against Property Eligibility Criteria

Self-Employed Applicants:

• Should be an Indian citizen.
• The loan applicant’s age limit must lie between 25 years and 70** years to improve his loan against property eligibility 
• Must show business continuity of 5 years minimum as it reflects on the business stability and it helps the lender to decide whether the applicant is eligible or not
• Should submit income tax returns for the business and show the certificate to help lenders have confidence in them about the repayment of the loan and get their loan application approved easily
• The applicant must be the owner of the property pledged as collateral and will need to produce all the documents related to it.
• The CIBIL score of the applicant must be more than 750 as it shows the financial credibility of the borrower and gives confidence to the lender regarding the payback of the loan

** The higher limit of the age is the age considered at the time of loan maturity.

Salaried Employees

• Should be an Indian citizen.
• The age limit for a salaried borrower lies between 23 years and 62** years 
• 3 years of minimum work experience in a private/public sector firm has to be shown to prove job stability and show that they have the means to pay back the loan
• Must show income proof in the form of salary slips, income tax return certificates, or other documents for the lender to have confidence in the applicant regarding the repayment of the loan.
• The mortgaged property must be owned by the loan applicant and all the documents related to it must be presented to prevent any future hassles
•  A CIBIL Score of 750 plus is mandatory for the lender to have faith in the borrower regarding the repayment of the loan

Final Words

Thus, a loan against property is a comparatively easier and pocket-friendly way to avail of a loan by leveraging a property owned by you. With a simple loan against property eligibility criteria, it is easy to avail of this type of loan easily. The borrowers can follow the above steps to get their loan application approved easily by the lender and enjoy its benefits. Since this type of loan has no end-use restriction, a borrower can avail it to fund anything requiring his immediate attention.