What are the Key Criteria to Apply for a Loan Against Property?

A loan against property can give you access to a substantial amount of money on lower interest rates and longer tenure for repayment. The lenders, however, require certain criterion to be fulfilled before they consider applications and disburse loan amounts for mortgage loan. Here are some of the most common criteria:

  • Age and nationality- You should be an Indian citizen, at least 21 years of age to be able to apply for a loan. 
     
  • Employment- The lender needs to know that the borrower is capable of paying back the loaned amount, and the borrower’s financial stability. The loan applicants must have had at least two years of work experience or three to five years in the same business if the borrower is an entrepreneur.
     
  • Credit score- You should have a credit score of 750 or above to prove your creditworthiness. Having a good credit score shows your responsibility, and track record of paying back your dues on time.
     
  • Existing Debts- If you have loans or debts to pay, you must try to settle them before you apply for a loan against property. Many experts believe that its wise to apply for a loan when your loan to income ratio is 30% or lesser than that.
     
  • Property- Property is used as collateral in most secured loans. Before you apply, you must make sure that your property has the required documentation and sale deed. Your property in no case should be under any legal dispute. In case, the property is co-owned, the lender will need the co-owners agreement in using it as collateral.
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