Acquiring finance in India is not an easy process. It gets even tougher when you don’t have any idea about the loan against property eligibility criteria. Another reason which adds to the lack of this knowledge is the range of alternatives available. It won’t be wrong to say that India has thousands of financing agencies spread all across.
Irrespective of the options, there are still a few standard benchmarks used when it comes to the Loan Against Property Eligibility Criteria. These criteria are similar among all the service providers which makes them easy to identify. On the other hand, some of them are even fixed by government organisations to maintain financial stability.
In case, you are trying to borrow finance in Bangalore, then there are a few necessary loan against property eligibility standards, which you should check out.
- Age Limit
The underlying loan against property eligibility criteria states that the minimum age of the borrower should be at least 18 years. However, this minimum age bracket should be supported with being a salaried individual. The maximum age limit for acquiring a loan against property in India is 70 years. These limits have been set because financing organisations believe it to be the most productive years of an adult.
- Average Income
In case, you are a salaried employee then your minimum per-month income should be around Rs.40,000 according to the loan against property eligibility criteria. You can even submit your pay slip to prove the same. For those who are self-employed and are looking to take credit, need to have an annual salary of at least Rs.3 lakh. However, it can differ in the case of certain financing organisations.The other element which plays a critical role in deciding whether you would get a loan against property instant approval or not is the submission of documents. Any financing service is impossible without the presence of official paperwork and a feasible loan against property tenor
- Loan Tenor
The tenor of the loan usually depends on the borrower. But according to the primary loan against property eligibility standard, it should not be more than 15 years. It is to ensure that the financing firm receives all its money in a proper time frame. Although, there is no minimum tenure period set by financing agencies. It also means you can structure your repayment system accordingly.
- Work History
Employment stability is the key to repairing the loan amount. That is why most financing organisations want to look into your work history. For a salaried employee, the minimum loan against property eligibility timeline is three years. But when it comes to businesses and self-employed entrepreneurs, the time frame is five years. It means they should be in business for at least five years before applying for a loan.
- CIBIL Score
Another way banks and financing agencies check the creditworthiness of a borrower is through his CIBIL score. The Interest Rates on Loan Against Property also determines that person with low CIBIL Score can also opt for it. For the same reason, it has been added to the loan against property eligibility norms. The minimum credit score that you need to have for successfully availing a mortgage is 750 or more. It is similar for all salaried employees as well as entrepreneurs.
- Verified Property
While dealing with, all the loan against property documents required. You should also remember to get your collateral asset verified by the organisation. This is not only because it is included in the loan against property eligibility list but, so that, the firm can get the real value of the property. Along with this, you should also carry registration and past sales deed of the property.
- Loan Amount
The loan amount that you can apply for also depends on the category of the asset according to the loan against property eligibility criteria. If your property is under the industrial group, then you might be able to receive 85% of the amount. Whereas for residential and commercial assets you would receive 70% and 60% respectively. So, make sure to apply for the correct amount.