A Quick Guide to Loan Against Property Eligibility and Documents

An emergency can occur unexpectedly. In case of an unforeseen emergency, your property can be your savior. Amidst such a scenario, you can leverage your property by getting a loan against property. Even if there isn’t an emergency and you need to influx money into your business or pay for your child’s education, a loan against property can be relied on to make the necessary arrangements for needed funds.

A loan against property has been touted as one of the best options in times of need. Unless there is any dispute over the property, any plot, home or office space can be used by the owner to seek funds with a loan against property. However, while a loan against property is a great solution to meet emergency needs, there are certain eligibility criteria that an applicant needs to meet in order to obtain such a loan.  

This quick guide to loan against property eligibility will help you understand how you can qualify for a loan. And help you identify the documents you will need to apply for a loan against your property.

Here is the top loan against property eligibility criteria for salaried employees:

1. You should be an Indian citizen and own a property
2. Your age should be between 30 to 60
3. You should have full-time employment in an MNC, public sector bank or a private company
4. You should have proof of regular income and employment

Here are the top loan against property eligibility criteria for self-employed individuals:

1. You should be an Indian citizen and own a property
2. You should be between the age of 30 to 70
3. You should have a regular source of income
4. Your business should be established and registered

Documents form the crux of your loan application. Be it a home loan or a loan against the property; your documents determine if a lender will grant you the amount you need Now that you know if you are eligible for a loan against property, let’s take a look at the documents you will need to apply for a loan on your property. 

1. Identity Proof

You will need to establish your legal identity. Thus, your Aadhar card, PAN card, Voter ID as determined by the lender you are applying to should be the first document you should add to your application file.

2. Proof of address

As an applicant, you will also have to submit proof of your current and permanent residence. Telephone or electricity bill that lists your address and is in your name should work. Make sure the bill you submit to the lender is a recent one. 

3. Property ownership papers

To get a loan against property, you must have all the legal documents that prove your ownership of the property you want to mortgage. Make sure you gather every legal document that justifies your claim to the property before you apply to any lender.

4. Proof of employment

While having property papers will lay claim to the property that will be mortgaged, you will also have to justify that you can pay back the amount you borrow. As a result, you will also need to submit your proof of income. For salaried people, this will be their salary slips and employment documents. While for the self-employed, documents like a business license that demonstrate their income and employment would be needed along with their loan against property application.  

5. Income Tax Documents

Another way any lender would want to ensure your ability to pay back the amount you borrow is through your income tax papers. A lender will use these numbers to determine if you can pay monthly EMIs as well as solidify your proof of income. Self-employed applicants may even have to submit their returns on their business. Make sure your income tax documents are in order before you apply for a loan against property.

Once you have gathered all these documents and ensured your eligibility, you are ready to apply for a loan against your property. It is often advised that you keep the documents mentioned above always handy. Because an emergency can truly befall anyone anytime. And a loan against property can help you maximize your investments when you need it the most.

Moreover, with this quick guide, you will always be ready to get a loan against property. And once you are ready to raise funds through such a loan, head over to ApnaPaisa.com. Get all the information you need to get a loan against property. Fill up the form on the site and let the best lenders who provide a loan against property find you. Thousands of loan applicants have already made the most of ApnaPaisa.com. Get more on home loans, personal loans, loan against property and any loan you wish to avail on ApnaPaisa.com. Visit our website today!