Eligibility Criteria for Loan against Property

Nationality: You need to be a Citizen of India with documents to prove your claim.

Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.

Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.

Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.

Market Value of Property: Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.

Title of Property: Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.

Documents Required to Apply for Loan Against Property

1. Proof of identity/residence
2. Proof of income
3. Property-related documents
4. Proof of Business (for self-employed)
5. Account statement for the last 6 months

Fees and Charges for Loan Against Property Loan

The fees and charges of property loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to property loans:

Particulars

Charges

Loan Processing Fees

0.5% to 4% of Loan Amount

Loan Cancellation

Usually 3000 to 5% of Loan Amount

Stamp Duty Charges

As per the Value of the Property and State Tax

Legal Fees

As per actual

Penal Charges

Usually 2% per month

EMI / Cheque Bonus

Approx 499/- to 599/-

Other fees and charges that lenders may levy on your personal loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges and swap.