Loan Against Property: Eligibility Factors for Salaried Applicants - Make Money Online

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Loan Against Property: Eligibility Factors for Salaried Applicants

If you need money, you may utilize the potential of your property. Banks and non-banking financial companies (NBFCs) offer loan against commercial, industrial, and residential property.

Commonly known as a loan against property (LAP), such facilities have several benefits. Here are three advantages of LAP.
  1. Longer tenure
LAP is available for up to  years. This ensures you are able to repay the borrowed amount without any financial trouble.
  1. Higher loan amount
Lenders offer mortgage loans between INR 5 lakh and INR 10 crore. This ensures you are able to meet your fund requirements.
  1. Affordable
Unlike unsecured facilities like a credit card or personal loans, the mortgage loan interest rates are affordable. Combined with a longer duration and lower interest rate, you are able to service the loan without any difficulties.

Calculation of LAP amount

Lenders consider some important factors to determine the eligible amount. Here are three such considerations.
  1. Monthly income
Lenders may require a minimum monthly income to determine your repayment capability. It is recommended you check this criterion on the lender’s website.
  1. Property value
An important factor that determines the loan against property amount is the property value. Most lenders sanction up to of this value as the borrowed amount.
  1. Existing debt obligations
Generally, your total Equated Monthly Installments (EMIs) on various loans must not exceed 50%to 75% of your net take home salary. Lenders consider your existing debt obligations and current EMIs to determine the additional amount that may be sanctioned as the mortgage loan.

You may include a co-applicant to increase your loan eligibility. The co-applicants income is added to your earnings to help you borrow a higher loan amount.

Eligibility factors
  1. Age
You must be between 23 and 70 years old at the time of applying for a loan on a property. Lenders offer shorter durations if you are closer to 70 years.
  1. Employment history
You need to have at least three years of employment history to be eligible for a loan. Moreover, you must have employment stability to show that you do not frequently change jobs to increase your loan for property eligibility.
  1. Credit score
A higher credit score improves your loan eligibility. It is recommended you check your credit score to correct any discrepancies or errors before you apply for a loan. A positive loan repayment history also is beneficial in improving your eligibility.
  1. Documents
You need to submit identity proof along with the property papers. Additionally, bank statement and copies of latest income tax returns (ITRs) must be submitted. You may avail of this information on the lender’s website.

Capital First, an NBFC offers such loans against your property. Apply for a loan today and unlock the potential of your property.

Loan Against Property: Eligibility Factors for Salaried Applicants Loan Against Property: Eligibility Factors for Salaried Applicants Reviewed by Lokesh kumar on 5:13 AM Rating: 5