Loan against property is the most common term used in the real estate and housing finance market. Loan against Property also known as LAP is a secured loan that is availed by mortgaging your commercial or residential property with a lender. This loan is offered for business purposes like purchasing equipment, funding of working capital, business expansion, buying raw material, marketing and promotion, purchasing machinery as well as for personal requirements like wedding, higher education, purchasing a property, medical emergency, etc. The resource stays as a guarantee with the bank until the whole advance against the property sum is reimbursed.
LAP can be availed against properties like a self-owned piece of land, self-owned but rented residential property, self-owned residential property, self-owned and self-occupied residential property, self-owned commercial property, and self-owned but rented commercial property. This type of loan is gaining popularity in India due to its lower interest rate. Benefits attached to this type of LAP are longer tenure, minimal documentation, balance transfer facility, etc.
Eligibility criteria for Loan against Property:-
The Loan Against property Eligibility may vary from bank to bank, some of the common criteria which a borrower has to fulfill are:-
- Any person who is an Indian national can apply for LAP
- A person should be at least 21 years of age at the time of submitting the loan application
- A person applying for a LAP should have been employed by your current organization or been involved in your business for a certain number of years
- He/she should have the minimum required salary or monthly repaying capacity
- A person should have submitted EMIs for other loans and made your credit card payments on time for three months prior to submitting the loan application
Loan against Property eligibility calculator
Loan against Property Eligibility Calculator helps you to discover the eligibility of the loan in various cities of the country. The banks look at the following factors while determining the value of the loan like property value, repayment capacity, total assets and liabilities, age of the applicant and his/her qualifications, number of dependents, spouse’s income, and legal and technical aspect of your property. Based on which banks decide how much amount a person would receive, it can range from 40 percent to 60 percent of the assessed market value,
advance you are qualified for, given the estimation of your property and month to month pay. You can also calculate EMIs on loan using the LAP EMI calculator.
Here are some of the eligibility criteria of the banks:-
SBI Loan against Property eligibility criteria
Any person maximum of 60 years in age who is an employee, having a business or engaged in an income tax assessment, or doing agricultural and allied activities can apply for the loan. The net monthly income of salaried persons should be in excess of Rs 12,000 and Rs 1,50,000 annually. If your spouse is a co-borrower or a guarantor, his/her income can also be added.
ICICI Loan against Property eligibility criteria
A salaried or self-employed professional who is between 25 years of age to 60 years of age is eligible for the mortgage loan. The bank approves a maximum of Rs 5 crore loan.
Kotak Mahindra Loan against Property eligibility criteria
Self-employed professionals and non-professionals, who are at least 21 years and a maximum of 65 years need to have a minimum annual income of Rs 1.80 lakhs and above. Your business should be operational for the last three years and should be making consistent profits for the last two years.
A salaried employee should belong to the age bracket of 18 years and 60 years and have a minimum balance of Rs 40,000 and above. An employee working with a private firm should hold a graduation degree and no such criteria exist if you are working with a public limited company or MNC or government or public sector company.
HDFC Loan against Property eligibility criteria
While applying for LAP in HDFC bank, age is an important factor. A salaried and self-employed person should be of a minimum of 24 years of age. A self-employed person’s business should be of a minimum of 5 years and be profitable as well. A person will also have to submit ITRs of 3 years to be eligible for the same.