What you must know about Loan Against Property Eligibility Criteria


LAP or loan against property is a secured credit helpful in addressing medical expenses, education expenses, setting up a business or any other financial emergencies. However, to qualify for this credit, individuals need to meet certain loan against property eligibility criteria. 

It is essential for intending borrowers to know the requisites before applying. Note that eligibility criteria are different for salaried and self-employed individuals.

Eligibility criteria for the salaried individuals 

  • Salaried individuals must be working with a public or private company or an MNC. 
  • The person must be aged between 23-62 years. 
  • Must be a residing citizen of India. 

Eligibility criteria for the self-employed individuals 

  • Self-employed individuals should have a business vintage of 5 years and a steady income.
  • The applicant must be 25-70 years of age.
  • Indian citizen. 

Apart from the above mentioned loan against property eligibility criteria, individuals also need to submit a list of documents to avail a sizeable loan amount. 

Documents required for loan against property 

  • Photo ID proof 
  1. Aadhaar card
  2. Voter card
  3. Voter card
  4. Passport
  5. Driving license 
  •  Address proof         
  1. Utility bills
  2. The first page of any bank passbook mentioning address 
  • Property documents 
  1. Title document for legal team
  2. Copy of all documents associated with property 
  • Income proof 
  1. Form 60
  2. IT returns
  3. Latest salary slips for the salaried individuals
  4. Bank statement for last 3 months for the salaried individuals and 6 months for the self-employed individuals.
  • Employment proof
  1. ID card generated by the employer.
  2. Business ownership document and registration certificate.

These documents are generally necessary to apply for a loan against property. But, it is always better to ask your lender if you need to submit additional documents. 

Individuals should also consider a few factors before applying for a loan against property. 

Factors affect loan against property eligibility criteria 

Consider the factors before you apply for loan against property online. 

  • Borrowers’ credit profile: Lenders will inspect a borrower’s profile thoroughly to ensure if he/she can repay the loan on time or not. Before loan approval, financial institutions check the credit score and credit history of the applicant. 

Hence, the applicant must ensure that he/she has a credit score above 750 and does not have a history of default. 

  • Age of the property: While approving this loan, lenders also consider the property age to decide LTV. For example, borrowers can expect higher LTV for new properties and vice-versa. 
  • Type of the property: Properties that you can pledge are residential properties such as self-owned houses, flat or apartment or commercial properties like malls, office buildings etc. Usually, lenders prefer self-occupied residential property and offer better interest rates against it. 
  • Value of the property: Property valuation is important for the lenders to determine sanctioning of the loan. Evaluate the property’s current market rate to apply for the loan. However, the value of the property also determines rate of interest on loan against property. Borrowers can avail better interest rates on the high-value property. 

Hence, you’ll get an idea of the eligibility criteria you need, and based on that, you may decide to proceed. You can also use the loan against property EMI calculator to estimate the exact amount you have to repay every month. 

Moreover, you can avail of pre-approved offers as leading HFCs extend pre-approved offers for eligible customers. Such offers make loan processing straightforward and quick. Enter your name and contact number to check your pre-approved offer. For further queries, you can also give a call at loan against property customer care. 

Knowing loans against property eligibility criteria will save your time and prepare you to apply and get loan approval quickly. You can also follow the tips mentioned above to streamline the entire process. 


Asees Mehtab

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