Loan Against Property

Eligibility

LAP allows you to borrow funds by using your property as collateral. This loan can be used for a variety of purposes, including debt consolidation, home renovations, or funding large expenses. Here’s a look at the typical eligibility requirements for mortgage loans in India:

• Age: Applicants should typically be between 21 and 58 years old. However, age limits may differ slightly based on the lender.

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• Property Ownership: The property being mortgaged must be in the applicant’s name and should have clear legal title. This property could be residential, commercial, or industrial, depending on the lender’s policies.

• Employment Type and Status: For salaried individuals, most lenders require that salaried applicants have stable employment with an organisation. You should have at least 1 year of total work experience, with minimum 6 months in your current job. For self-employed individuals, a steady business track record of at least 1-2 years is usually required. Consistent income from the business or profession is essential to demonstrate financial stability.

• Income Requirements: Minimum income requirements generally vary based on your city of residence and the loan provider. Salaried employees need a minimum monthly income of ₹12,500, while self-employed individuals need to show consistent monthly revenue. A higher income may improve loan eligibility and increase the loan amount you qualify for.

• Credit Score: A good credit score, 700 and above, is preferred by most lenders. This score shows your creditworthiness and can improve your chances of approval. If you have a lower score, don’t worry; we can help you explore options.

• ​Loan-to-Value (LTV) Ratio: The Loan-to-Value ratio determines how much of the property’s value will be financed by the lender. Typically, lenders finance 70%–80% of the property’s market value, and the borrower must contribute the remaining amount as a down payment.

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• Existing Financial Obligations: Lenders assess the applicant’s existing debts and monthly obligations to ensure they can manage additional EMI payments. A low debt-to-income ratio increases your chances of loan approval.

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• Property Valuation: Lenders will usually conduct a professional valuation of the property to determine its current market value. The loan amount sanctioned is based on this valuation, which influences your Loan-to-Value ratio.

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