Unlocking Doors: Eligibility Criteria for Property Loans

Property loans or mortgage loans or loans against property are loans availed of by pledging a residential or commercial property as security or collateral. The presence of security makes these loans a popular financing option. The pledged security reduces the risk for the lender and therefore, lenders sanction loans against property or property loans at low loan-against-property interest rates. Further, the loan money comes with zero end-use restrictions and one can also avail of a loan against property tax benefits if one spends the loan money on construction or remodeling of their home or for business expenses. These benefits make loans against property a popular financial tool. If you are planning to apply for a property loan, you must make sure you meet the eligibility criteria for property loans. Not meeting these eligibility requirements may give your lender a reason to reject your loan application and not offer you a loan. So, let us walk our readers through the eligibility criteria for property loans.

Property Loans: Eligibility Criteria 

1. The loan applicant must be a residing citizen of India. 

2. They must be between 25 and 85 years of age. Please note that the minimum and maximum age requirements vary from lender to lender and are also based on whether the loan applicant is salaried or self-employed. So, if you are planning to apply for a property loan, it is recommended that you talk to your lender and get clarity on the minimum and maximum age requirements.

3. A CIBIL score above 750 is considered necessary. A credit score below 750 indicates low creditworthiness and repayment capacity and therefore, borrowers with such a CIBIL score find it difficult to get approved for a property loan. Loan applicants must try their best to maintain a credit score above 750 if they are planning to apply for a loan. 

4. Lastly, the loan applicant must have all the property papers in their name. Further, if the property belongs to more than one owner, the loan application must be signed by all the property owners.

Please note that these are generic loans against property qualifying criteria and property loan requirements may vary from lender to lender. So, it's best to check with your lender regarding their loan against property eligibility requirements before you initiate the loan application. If you do not meet all of your lender's qualifying requirements, they might reject your property loan application or sanction you a loan on terms and conditions that are undesirable to you.  

If you are planning to apply for a property loan, please also keep in mind that these loans are secured by the property bought with the loan money. Therefore, in case of loan default, your lender will recover the loan money by selling the pledged collateral. Borrowers must therefore avail of these loans after carefully assessing their repayment capacity and planning repayment. All loan applicants must use the loan against property EMI calculator to plan their repayment strategy and decide the loan offer for them.