Property Loans, also known as loans against property or mortgage loans, are loans that people avail of by pledging a property they own as security. This property could be residential or commercial or even land. Property loans or loans against property offer many benefits that have made these loans quite popular. These low-interest rate loans are extended for a long repayment tenor of up to 18 to 20 years. Low property loan interest rates and long repayment tenor help keep loan EMIs affordable and repay property loans easily and comfortably.
More importantly, the funds availed of through a loan against property come with end-use flexibility. You can use it to consolidate your debt, renovate your home, or expand your business. Before applying for a property loan, it is important to understand the loan eligibility criteria.
Loans Against Property: Eligibility Requirements
If you want to be considered for a loan against property and be able to negotiate a low mortgage loan interest rate deal, these are the generic property loan eligibility requirements that lenders want borrowers to fulfil:
1. The loan applicant must be a residing citizen of India.
2. The loan applicant must meet the minimum and maximum age requirements set by the lender. The minimum age requirement that lenders generally set is 25 years and the maximum age requirement is 85 years. In other words, if you want to be approved for a loan against property, you must be at least 25 years of age and you must be no more than 85 years of age at the time of loan maturity.
3. You must have a CIBIL score above 750. Some lenders also sanction loans to individuals with a CIBIL score in the range of 700 to 749. However, know that your ability to negotiate for a low interest rate and other favourable loan terms and conditions is directly proportional to the CIBIL score you have. Having a CIBIL score above 750 will allow you to easily secure a low-interest-rate property loan.
4. The loan applicant must be the rightful owner of the property they want to pledge as collateral and must have all the property papers in their name.
5. Lastly, you must have all the documents required for a loan against property or property loan ready with you.
Different lenders have different qualifying criteria for loans against property. If you meet all the qualifying criteria, you can easily apply for a loan against property.
Loan Against Property Eligibility Calculator
The loan against property eligibility calculator is an online tool that lets loan borrowers calculate the loan amount that one is eligible to apply for. These online tools calculate the loan amount that one is eligible to avail of as a loan after taking into consideration important factors, such as the value of the property to be pledged as a collateral, the total income of the loan borrower, their FOIR, etc.
When an individual applies for a loan amount that they qualify for, their chances of being able to avail of the loan and avail it of on the most promising loan terms and conditions increase significantly. Therefore, loan borrowers must always check their loan against property eligibility and apply for a loan amount that they qualify for. The mortgage loan calculator or loan against property calculator is available easily and is free to use.
Borrowers can use these tools before applying for a loan against property and always apply for a loan amount that they qualify for.
