Know All About Loan Against Property and How It Works - Loan Trivia


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Monday 24 January 2022

Know All About Loan Against Property and How It Works

loan against property

Have you heard about a loan solution in India named a loan against property? 

If not, then you must go through this post and know about its fundamentals. 

Read on!

What is a loan against property, and how it works?

As the name suggests, a loan against property is given when you keep your property as collateral to get an amount against its value. If your property is located in a known city with good infrastructure, you can get a significant amount at the lowest rates. 

A loan against property works when you keep your property as collateral with the lender. And that’s why it is known as a secured debt with lower EMIs. But if you fail to repay on time, lenders can liquidate your asset and recover the funds. 

What are the eligibility criteria to apply for a loan against property?

Besides having a property in a leading city area with basic amenities, it is also required to meet some basic eligibility terms and submit a few documents. Have a look: 

  • You should be a resident citizen of India with a property in a city/area where a lender you want to apply with operates. 

  • Your age should be between 28 and 58 years. 

  • You should be a salaried employee working in an MNC, Public and Private Limited Company. 

  • Latest Salary Slips. 

  • Last 3 months’ bank account statements. 

  • Form 60/PAN Card of the applicant. 

  • ID proof.  

  • Address proof. 

  • Copy of the documents of the property you want to keep as collateral. 

  • Income Tax Returns (ITRs). 

  • Title documents as per the needs of the lender’s legal team. 

  • Any other document as required. 

These are basic eligibility terms, and documents and a lender may or may not the required additional documents. 

Hence, you should check it on the website of the lender you are applying with.

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