Tuesday, December 18, 2018

8 Loan Against Property Eligibility Conditions To Fulfil

A loan against property does what the name suggests – it gives you a loan against your property. It is a facility where a bank or non-banking finance company (NBFC) provides you with easy access to money. It is provided while holding the property as collateral.

Once the loan is repaid under the scheduled tenor, the lender releases your property. You can then again use it as collateral to get another loan.

If you fail to repay the loan in time, the lender has the right to attach your property and sell or dispose of it to recover its unsettled dues.

However, only having the property in a city as per the exclusive list of the lender is not the only eligibility criteria. 

The loan against property India approval is dependent on many other valid eligibility conditions. Yes, you need to match the loan against property documents required with your profile to finally receive the approval.

What is a Loan Against Property facility?

When you keep your property as collateral with a lender, you get to avail the loan against property for a higher loan amount. Based on our requirements, the eligibility, and property’s value, you can get an amount between Rs.1 crore to Rs.3.5 crore.

How can you use the Loan Against Property funds?

The loan against property facility is similar to that of personal loan in nature. Once you receive the money, you are free to use it for multiple purposes such as: 

  • Business expansion 
  • Debt consolidation 
  • Education costs 
  • Family and personal medical emergency 
  • For all other personal needs 

What is the Loan Against Property Eligibility Criteria?

To become eligible for the loan and get quick approval from a prospective lender/bank, you need to fulfil some eligibility terms. Some of the standard loan against property eligibility conditions includes:

  1. Mostly such properties that are residential in nature, either self-occupied or rented to tenants. You don’t have the authority to apply for the loan against property for a space that you don’t own and that you live in on rent. You are also not allowed to mortgage the empty or unused piece of land. 
  2. Your sales/title deed must be clear with absolutely no discrepancies that could affect it later. 
  3. Commercial properties are also available as collateral during the loan against property application. You will need to have clean property documentation for availing the loan against all such properties. 
  4. You need to be an Indian citizen whose age is as per the terms and conditions of your lender. 
  5. You should have a regular source of income and must be working for an MNC, privately owned or public limited companies. 
  6. You should have a robust CIBIL Score in the range of 750+ 
  7. The applicants need to have no defaults and have clean repayment history 
  8. You need to have your ‘to be mortgaged properties’ in major cities of India or as declared by your lender. 

Additional Read: Different Kinds of Loans against Property

Loan Against Property Documents Required

Some of the common loan against property documents required that you need to provide to your lender to complete your eligibility are:

  • KYC documents such as PAN Card and Aadhaar Card 
  • Address proofs such as Driving License, Voter ID Card, Passport or Aadhaar Card 
  • Latest Salary Slips 
  • Last 3 months bank account statements 
  • Copy of the property that you want to keep as the collateral/security 

The loan against property can help you if you need to fulfil any long-craved financial aim or cover other purposes of life. Now that you are clear about the loan against property eligibility and documents, you will find it easier to apply for it online. 

Bajaj Finserv presents some incredible pre-approved offers on loan against property, housing finance, business loans, and personal loans and more. They are created to make your loan application easier and less time-consuming.

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