The basic eligibility criteria for loan against property are age, nature of employment, income and loan amount to property value. By meeting the required loan against property eligibility of the lender, you can avail of LAP up to 15 crore for 15 years at interest rate ranging from 7.25% to 8.00% p.a. For fast approval & disbursal, attach the required loan against property documents with your LAP application.
If you need funds to cater to a personal or business emergency, a personal loan is an ideal option. However, personal loans have limitations, especially when your requirements are huge. Under such circumstances, a Loan Against Property is a better alternative. Both personal loan and Loan Against Property are similar in many ways, but they differ a lot, as well. The eligibility criteria for a personal loan are different from that of a Loan Against Property. They differ in many other ways, too.
Before we proceed with discussing the differences between the two, let us compare the similarities:
Here are the aspects in which the Loan Against Property differs from personal loan:
A personal loan is ideal for meeting small requirements, whereas a Loan Against Property caters to more significant needs.
These are the general eligibility norms. It can differ from one bank to the other.
Following are the eligibility criteria for different Loan Against Property schemes offered by top lenders:
|State Bank of India - Eligibility Criteria|
State Bank of India offers three variants of Loan Against Property:
The eligibility norms for all schemes are mentioned below:
1. Loans Against Property
a) Annual Income more than 3 Lakhs and <= 5 lakhs: 50%
b) Annual Income > 5 Lakhs and <= 10 Lakhs: 55%
c) Annual Income > 10 Lakhs: 60%
2. Loans Against Mortgage of Immovable Property
a) NCR, Mumbai, Chennai, Pune, Ahmedabad, Bengaluru, and Hyderabad: 5 Crores
b) At other BPR centres: 2 Crores
c) At Non-BPR centres: 1 Crore
d) Rural and semi-urban areas with population up to 1 Lakh: Nil
3) Rent Plus Scheme - Loans Against Rent Receivables
a) 75% of the realisable value of the property
b) 75% of the net rent receivable for the residual lease/loan period
c) Maximum permissible amount in this scheme
|ICICI Bank - Eligibility Criteria|
|HDFC Bank - Eligibility Criteria|
|Axis Bank - Eligibility Criteria|
a) In permanent service in Government department or a reputed company
b) Should be above 24 years when applying for the loan
c) The maximum age can be the age of superannuation
a) Should file Income Tax returns
b) The minimum age is 24 years at the time of application, whereas the maximum is 65 years at the maturity of the loan.
a) Professionals include doctors, Chartered accountants, architects, and so on
b) Other eligibility norms are the same as that of self-employed non-professionals
Amount eligibility norms
Axis Bank also offers a Lease Rental Discounting facility
a) 85% of the present value of future rentals
b) 50% of the property value
|DHFL - Eligibility Criteria|
|Punjab National Bank - Eligibility Criteria|
a) Personal needs: 1 Lakh to 25 Lakhs
b) Business requirements: 5 Lakhs to 5 Crores
Assessment of limit - to determine the eligibility of the loan amount
Lowest of the following parameters:
The limit also depends on the maximum permissible deduction:
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The documents include the following:
The Loan Against Property is not a housing loan where there is a creation of an asset. The Loan Against Property is a loan against an asset. The purpose of the Loan Against Property is to meet individual and business needs. Hence, the banks consider it as low-priority finance when compared to housing loans. Therefore, the margin is higher in comparison.
Personal loans are unsecured loans. Hence, they are expensive when compared to a secured loan like the Loan Against Property. However, the purpose of a personal loan and the Loan Against Property is similar.
The following factors play a critical role:
The income of the borrower and the EMI together should satisfy the net take-home pay norms.
Proving that you have taken the Loan Against Property for home repairs can be challenging. You might have to preserve the documents to rebut any notice that you could receive from the IT department. Therefore, it is better to take a loan for home repairs and renovation. The rate of interest benefit will also be available to you. At the same time, you can claim IT concessions without any problems.
Yes, you can apply for the Loan Against Property in joint names. It can help you to enhance the overall eligibility amount. However, the co-borrower should be an eligible co-applicant.
The immediate family members and co-owners of the property can be eligible co-applicants.
The NRI will not be available every time the bank wants to contact them. Therefore, it is advisable to have a resident relative to join as co-borrower.
No, banks do not accept agricultural land as collateral for any loan not connected with agricultural activities. You can apply for a loan against residential or commercial property.
Yes, some banks offer loan against vacant residential plots, but the margin is higher at nearly 50%.