Property has the untapped potential of providing substantial money without selling it. You can obtain a loan against property (LAP) and utilise the funds to upgrade your equipment, invest in your inventory, expand your premises, pursue other growth opportunities, or cover other costs in lean times. The loan-to-value (LTV) can be up to 75% of the property value or Rs 15 crores, whichever is less, with providers like Herofincorp.
To obtain such useful eligibility for loan against property loans, customers must meet the eligibility for loans against property. The better one meets the eligibility criteria, the higher the loan amount can be.
Understand Loan Against Property (LAP) Eligibility Parameters
We have certain requirements for borrowers to meet for a loan against property approval. Here are the details of the eligibility parameters:
Indian nationals can apply for a loan against property. The applicant’s minimum age should be 25 years (at the time of application), and the upper age limit is 75 years (at the end of the loan tenure). If the borrower is 65 years old at the time of application, the maximum repayment period can be ten years.
2. Property Conditions
– The title of the pledged property should be clear without any litigation issues. There should not be any existing loan against this property.
– The property type can be a building, a piece of land, a factory, a shop, an apartment or any other residential or commercial property.
– The property value must be above Rs.50 lakhs, and its maximum age should be 50 years.
– The property should have insurance against fire and other hazards.
3. Occupation and Income
Our LAP loans are available for self-employed professionals and business entities. Traders, retailers, manufacturers, and service providers with a regular source of income can avail of LAP loans easily. Businesses must be operational for a minimum of three consecutive years.
Applicants with a stable income meeting our internal guidelines are preferred. Businesses with a consistent income are considered capable of paying timely EMI. Use the LAP loan EMI calculator to estimate the loan EMI for your desired loan size.
The debt-to-revenue ratio should be less than 50 per the defined eligibility for a loan against property. Customers should note that salaried individuals are not eligible for a loan against property.
4. Ability to Produce Required Documents
Along with the filled-in loan application form, applicants must be able to produce the following documents:
– PAN (Permanent Account Number) Card
– ID Proof
– Address Proof
– Complete chain of property-related documents
– Business Proof
– Certificate of practice, trade licence, registration certificate issued by the RBI (Reserve Bank of India) or SEBI (Stock Exchange and Board of India), partnership deed
– Excise/ Service Tax Registration/ Sales Tax/ VAT
– Income Proof
ITR of previous three years, profit and loss statement, balance sheet, income statement, and bank account statement of previous six months.
These are the simple eligibility conditions that property owners need to meet to qualify for a loan against property. Also, we provide a free LAP loan EMI calculator to determine convenient EMI and suitable loan tenure. Understand the eligibility conditions, make an informed decision, and take the necessary steps to apply for the loan and utilise the secured funds to meet varied financial needs.