Loan against property can be availed by any individual looking for means to finance personal expenditures of a substantial amount through a mortgage. Such credits have no end-use restrictions and are relatively easier to obtain due to the presence of a collateral guarantee. You can easily finance your child’s future education or marriage, or even start a new business through a loan against property. However, you need to satisfy loan against property eligibility criteria for this purpose.
Following conditions need to be fulfilled for this purpose -
Self-employed individuals should be between 25 to 70 years of age, and salaried workers should be 33-58 years old to avail a mortgage loan against property.
- Proper Documentation
The following loan against property documents required need to be submitted:
- KYC documents such as Aadhaar card, Voter ID card, PAN card, etc. have to be submitted for verification of identity as well as address of a borrower.
- Property documents against which the loan is being availed.
- Income receipts of an applicant has to be furnished to avail loan against property. Salary slips of the past three months for employees, and financial records of a business in case of entrepreneurs can be provided for this purpose.
- Loan Against Property Documents
Related documents proving ownership of a property have to be produced by a potential borrower while availing such loans. The deed remains with a financial institution up until the loan is repaid in full due to transfer of interest.
After ensuring that you possess all the relevant documents, choose the appropriate loan tenor and type of interest rate for the loan you wish to avail. It is also advisable to look at additional fees, and charges levied while avail such mortgage loans.