Loan Against Property Eligibility differs from bank to bank and tenure of the loan. Loan Against Property is offered by the banks for various purposes. It is offered against freehold property such as residential property as well as commercial property. However, the eligibility for a loan against property differs from bank to bank.

Loan Against Property Eligibility

Eligibility Criteria for banks and other financial institutions differ from each other but almost the same for salaried employees and self-employed.

  • The applicant should be a citizen of India.
  • Applicants must attain the age of 21 at the time of submitting the loan application.
  • He must involve in the business for certain years or must-have in employed by the current organization.
  • He must have sufficient salary to repay the amount of loan
  • The borrower should have submitted the EMIs of other loans
  • He should have made the credit card payments

Eligibility Criteria for Loan Against Property of different banks

SBI Eligibility for Loan Against Property

A person who can the Loan Against Property from SBI

  • Must be an individual who is an employee or a professional
  • The net monthly income of the employee should be more than INR 12,000
  • Net Annual Income of the employee should not be less than INR 1,50,000
  • Applicant should not be less than the age of 60 years

ICICI Eligibility for Loan Against Property

  • Applicant must be a citizen of India
  • The applicant can get the loan maximum for 15 years
  • He must attain the age of 21 at the time of submitting the loan application.
  • Applicant should not be less than the age of 60 years

HDFC Eligibility for Loan Against Property

  • Must be an individual who is an employee or a professional
  • The net monthly income of the employee should be more than INR 12,000
  • Net Annual Income of the employee should not be less than INR 1,50,000
  • Applicant should not be less than the age of 60 years

To finance the child’s education, the loan against the property for education can prove to be more effective. While taking the loan against property the borrower should keep a few factors in his mind such as

  • Eligibility criteria
  • Loan tenure, and
  • Interest rate

Loan against property provides many comfortable zones to the borrower such as

  • The considerable amount up to 75% of the property value
  • It provides flexibility in the funds, and
  • It is easy to repay.

Interest rates on Loan Against Property

  • Loan against property offer funds at a nominal rate of interest because it is a secured loan.
  • However, it is important to search for the best lender at the lowest rate of interest. And other charges as well.
  • You can take the help of a financial institution for a loan against property. They can calculate and tell you about the best rates on the home loan. As it will be more benefi=vial and less time-consuming.

The fixed and floating rate of interest

  • The interest rate is another factor to keep in mind there are two kinds of interest rates
    • A fixed-rate of interest, and
    • Floating rate of interest
  • Use a fixed rate of interest when your loan is for the longest tenure.
  • However, it is important to go through the terms and conditions thoroughly.
  • Along with the interest rates, there are other charges levied on the loan such as
    • Penal interest
    • Process Fees
    • EMI bounce charges
    • Pre-payment charges
    • Foreclosure charges, etc.

Related Article- Benefits of Loan Against Property