How to Get Loan Against Property Easily?

Published: 19 August 2023

Updated: 20 September 2023

How to get a Loan Against Property? This question comes to our mind whenever we are running out of funds and have collateral in our hands. But with the introduction of technology in the financial aid sector it has become easy for the person to get Loan Against Property. Apply Loan Against Property instantly through the website or the app of the lender and get an instant approval for the loan.

Get your loan against property approved and disbursed in no time. The interest rate for a loan against property starts from 8.5% P.A. If you have a collateral or security in your hand then utilize it to the fullest extent and pass the hurdle of financial barriers easily. Loan Against Property is a secured loan hence, it required collateral that shall be pledged as the security to the bank. These loans are offered at a low-interest rate and have longer tenure periods of the loan. A borrower can get a high loan amount from the loan against the property. It is considered good to check all the terms and conditions and read the loan agreement carefully before signing it to avoid any discrepancy between the bank and the borrower.

Eligibility Criteria for Loan Against Property

The eligibility criteria for a Loan against Property typically involve a few key factors that lenders assess to determine the applicant's suitability for the loan. These criteria can vary slightly from one financial institution to another, but they generally include:

1. Property Ownership: You must be the legal owner of the property you intend to pledge as collateral for the loan. The property should also have clear titles and be free from any disputes.

2. Age:Most lenders have a minimum and maximum age requirement for applicants. Usually, you need to be at least 21 years old at the time of applying and not older than 65 or 70 years at the time of loan maturity, depending on the lender.

3. Income and Repayment Capacity:Lenders assess your income to determine your ability to repay the loan. A stable and regular source of income is often a crucial criterion. Your monthly income should ideally meet the lender's specified threshold.

4. Credit History:Your credit history and credit score play a significant role in your loan eligibility. A good credit score indicates your creditworthiness and increases your chances of loan approval.

5. Property Valuation: The value of the property you are pledging as collateral will be evaluated by the lender's appointed values. The loan amount you're eligible for will largely depend on this valuation.

6. Loan-to-Value Ratio (LTV): Lenders usually provide loans up to a certain percentage of the property's value, known as the LTV ratio. This helps mitigate risk for both the borrower and the lender.

7. Employment Stability:Lenders prefer borrowers with a stable employment history, as it reflects their ability to maintain a consistent income and repay the loan.

8. Debt-to-Income Ratio (DTI):Your existing debt obligations, including any ongoing loans, are considered when evaluating your eligibility. A lower DTI ratio indicates a healthier financial situation.

9. Property Type: Some lenders may have preferences regarding the type of property they accept as collateral. Residential or commercial properties are generally accepted, but the specifics may vary.

10. Documentation:Proper documentation of the property, your identity, income proof, and other relevant documents are essential for the loan application process.

Interest Rate for Loan Against Property

The interest rate for the Loan starts from 8.5% P.A but the interest rate offered to you shall depend upon the eligibility criteria. Mentioned below are the top banks that are providing loan against property.

Lender	Interest Rates (p.a.)
Axis Bank	10.50% – 10.95%
Bajaj Housing Finance	8.50% – 18.00%
Bank of Baroda	10.85% – 16.50%
Bank of India	11.25% onwards
Bank of Maharashtra	10.45% – 11.95%
Central Bank of India	12.15% – 14.25%
Federal Bank	12.60% onwards
HDFC Bank Limited	9.50% – 11.00%
ICICI Bank	10.85% – 12.50%
IDFC First Bank	9.00% – 16.50%
India Shelter Finance Corporation Ltd.	12.50% – 21.10%
Karur Vysya Bank	11.13% – 13.03%
Kotak Mahindra Bank	9.15% onwards
LIC Housing Finance	9.50% – 11.55%
L&T Finance	9.50% onwards
PNB Housing Finance	9.24% – 15.00%
Tata Capital Housing Finance	10.10% onwards
UCO Bank	10.85% – 12.00%
Union Bank of India	10.50% - 13.15%

Process of Getting Loan Against Property

If you are worrying about how to get a loan against property then the answer to your question is mentioned below.

1. Visit the website of the lender and go to the section of Loan Against Property.

2. Click on the Apply button and fill in the form. Click on Submit Button.

3. Your query shall be registered you will get a call from the executive explaining the process of the loan against the property.

4. Get the documentation done online on the portal and get instant approval of the loan against the property.

5. Get quick disbursal of the loan against property at the lowest interest rate and make this loan a helper in fulfilling your dreams.

Documents required for Loan Against Property

There are certain documents that are required to apply for a loan against property. Mentioned below is the detailed list of documents that a borrower must have to apply for a loan against property. It is advisable to keep these documents before you shall be applying for the loan.

Documents required for Loan Against Property for Self-Employed

1. PAN Card

2. Application Form

3. Identity Proof (Aadhaar Card, Driving License, Passport, Voter ID)

4. Address Proof ( Passport/Driving License/Voter's ID/ Utility Bill/Bank Statement/Bank Account) Passbook (Updated and no more than 3 months old) / Aadhaar Card

5. Ownership Proof (Agreement Copy / Electricity Bill / Maintenance Bill with share certificate / Municipal tax bill/Share certificate)

6. Business Proof ( GST Details, ITR of the company)

7. Banking of the company

Documents required for Loan Against Property for Salaried Employees

1. Application Form

2. Identity Proof (Aadhaar Card, Driving License, Passport, Voter ID)

3. Address Proof ( Passport/Driving License/Voter's ID/ Utility Bill/Bank Statement/Bank Account)

4. Salary Slip

5. Form-16

6. Banking Details of last 6 months

Conclusion

The article shall clear doubts about how to get a loan against property. A Loan against property shall become a helping hand in achieving all your dreams without making financial insecurity a hurdle in it. A loan against property is granted by banks and the NBFCs to the people who are eligible for it. Currently, the interest rate for the Loan Against Property is 8.5% P.A. It shall be given to the borrowers who shall complete the documentation. You can easily know how to get loan against property if you pass the eligibility criteria, complete the documentation and complete the process of the loan.