A loan against property is a loan that you can take from a lending institution against the property. You should be the owner of the property. However, if you not the sole owner then all the other owners of the said property, should be co-signers on the loan application form. So, let’s quickly look at the defining features of the loan:

There are eligibility criteria to be met

Every lender has eligibility criteria to meet for availing the loan against property, and it is different for salaried individuals and self-employed individuals.  You have to meet the age requirement, the educational qualification (for salaried individuals) and income requirements. If you are an SME, you are required to submit your ITR for two years.

• You have to submit the documents asked for

Salaried individuals are required to provide three months of salary slips and Form 16. Self-employed individuals require VAT and Form 32. You will also be required to provide proof of identity, address,

• You do not need to declare the end-use of the loan

You can use the sanctioned loan amount to meet any money needs ranging from paying for a child’s education to starting a new business. Always use the EMI calculator to calculate the EMI and loan tenure.

• Defining features

You can get up to 70% of the value of your property as the loan amount. The loan property interest rate is lower than other loans, and it is dependent on type of property, income, documents, and credit history. Most lenders require you to have a minimum score of 700.  

These are just some of the features of the loan, but you must ask the lender’s representative for details before applying for the loan.

Must Read: What are the Essentials of Loan Against Property?