Loan Against Property is a type of secured loan, wherein you can avail the loan amount by pledging your property as collateral with the lender. It’s a multipurpose loan, and hence the amount availed can be utilized for personal as well as business needs. Numerous factors influence your Loan Against Property eligibility. Hence, you should check your eligibility before applying for a Loan Against Property.

Go through the loan eligibility factors as mentioned below:

Eligibility Factors for Loan Against Property

Age

Your age directly affects your loan tenure as well as eligibility. Younger applicants stand a higher chance of securing a Loan Against Property as opposed to elderly applicants who are nearing their retirement. At an early age, you can get a Loan Against Property up to 15 years, which you can repay easily over a period of time.

With lenders like Kotak Mahindra Bank, self-employed applicants above 21 years of age can apply for a Loan Against Property. The age bracket for salaried individuals is between 18 years and 60 years.

Monthly Income

The higher your monthly income, the higher are your chances of securing a Loan Against Property. This is because applicants with a regular and steady income are considered to be low-risk borrowers by the lender, owing to their high repayment capacity.

Employment Stability

Your job profile, work experience, and employment stability also plays a crucial role in determining your loan eligibility. If you are employed with an MNC, or an esteemed public-sector company, lenders may consider you a reliable borrower. Likewise, if you are an entrepreneur with a profit-making business, the chances of qualifying for a Loan Against Property increase.

Credit Score

Before applying for a loan, make sure that you work towards improving your credit score. Since your credit score determines your creditworthiness, a high score of 750 or above can boost your loan eligibility. Moreover, if you have a decent credit score, you can negotiate with the lender for a more attractive Loan Against Property interest rate.

Existing Debts

Lenders may hesitate to grant you a Loan Against Property if a major portion of your monthly income is spent on repaying other debts. On the other hand, with a low debt-to-income ratio, your chances of qualifying for a Loan Against Property will be higher. Therefore, it’s advisable to minimize your existing debts before applying for a loan.

Property Value

The property you pledge as collateral with the lender will affect the loan amount you are eligible to borrow. Lenders will evaluate the market value of the property and sanction the loan amount accordingly.

To avoid the chances of your loan application rejection, it is necessary to meet the eligibility criteria. Make sure you use an online loan against property eligibility calculator to -give you a better picture. So, why wait if you are eligible? Apply for a Loan Against Property, and meet your financial requirements with ease, today.