A loan against property is presumably the ideal solution for availing high financing in India. NBFCs offer financing of up to Rs. 3.5 Crore and flexible tenure of up to 20 years when you avail a loan against property.
It delivers all the features of a personal loan but more extensively. A personal loan also requires the customer to have a high credit score while a loan against property doesn’t have such prerequisites. The Loan Against Property Interest Rates are quite lower in comparison to other loan available.
NBFCs have simple loan against property eligibility requirements to sanction these secured loans. Some of the requirements include:
- Occupation
Customers either have to be employed with a public/private enterprise or an MNC. Self-employed applicants need to have business with a constant source of income.
- Age
A salaried applicant should be between the ages of 33 and 58 years. For self-employed ones, the age ranges between 25 and 70 years.
- Experience
Both salaried and self-employed individuals must have a minimum experience of 3 years with their occupation.
A self-employed will have more chances of getting a loan against property approved if they have a business vintage of more than 3 years.
- Income Tax Returns
Filing income tax returns is a crucial loan against property eligibility criteria that both salaried and self-employed individuals need to fulfil.
- Business Turnovers
Self-employed applicants must get at least the last year’s business turnover audited by a CA.
- Credit History
Financial institutions check the credit history of all applicants before approving a loan against property. The credit history outlines in detail the number of credit, duration of credit, repayment history, number of credit inquiries made by a lender, and various other aspects.
A customer can only get the Loan Against Property India approved if he/she has maintained a good credit history all throughout.
- Fixed Obligation to Income Ratio (FOIR)
The Fixed Obligation to Income Ratio (FOIR) compares the total amount of monthly fixed obligation with the income of a customer. Lenders look for applicants who have a FOIR of 40 to 60% while sanctioning a loan.
Meaning, the total amount of fixed monthly obligations of a customer should remain below 60% of his/her salary. In case the present obligations are more, lenders will be reluctant to approve the loan.
Also Read: Tips to Boost Your Loan Against Property Eligibility
- Documents
The loan against property documents required by financial institutions include:
- KYC documents – Driving License, Aadhaar Card, Passport, Voter ID, PAN card, valid employee ID from government employers.
- Address proof – Electricity bill, gas bill, telephone bill, water bill, post-paid mobile bill.
- Bank account statement for the previous 3 months.
- Salary slips of the previous 3 months.
Other than the above, one also needs to provide relevant property documents like:
- Previous registrations or Chain of Title.
- Property registration or patta or sales deed or gift deed.
- Property plan.
- No Objection Property (NOC) from a local government authority like Municipal Corporation, Gram Panchayat, etc.
Applicants must keep all mentioned documents ready to ensure smooth processing of their application.
By fulfilling these loan against property eligibility criterions, a customer can get his loan disbursed. Lending institutions can process the loan within 72 hours and disburse it to the customer’s bank account. Avail a loan against property and address your financial needs efficiently.
