LOAN AGAINST PROPERTY - ELIGIBILITY, DOCUMENTS REQUIRED INTEREST RATES

Loan against property is another name for a mortgage loan. It is available for both salaried and self-employed individuals to fulfill their personal needs or for their business by mortgaging their property. The investment might be taken for expanding business, acquiring assets, education needs, marriage, etc. The loan is given against the mortgage of a residential, commercial, or industrial property. The end use of the loan should be mentioned in the application form, and the credit is granted only if the end user is allowed by the bank. The loan against property is provided at a particular interest rate.

Loans against properties can be beneficial in different ways. Opting for long repayment tenure of up to 20 years distributes the loan amount, and one can lower the EMI amount each month. Interest amounts are lowest when the loan is availed against a residential property. Documents required for a loan against property vary from bank to bank. It also varies based on a person being salaried or self-employed.

For salaried individuals, the documents required for a loan against property are as follows: 
• Latest salary slips.
• Bank account statements for the previous three months.
• Identity proof (PAN Card/ Aadhar Card/ passport etc.)
• Address Proof.
• Copy of the document of the property with Map
• Form 16/ IT returns (3 years).
• Passport size photographs.
• Duly filled application.

For self-employed individual, documents required for a loan against property are as follows:

• Bank account statement for the previous six months.
• Identity proof (PAN Card/ Aadhar Card/ passport etc.)
• Address Proof.
• Copy of the document of the property with Map.
• Duly filled application.
• Income tax return.
• Passport size photographs.
• Latest three years Audited financials.

The "DOCUMENTS REQUIRED FOR A LOAN AGAINST PROPERTY" as mentioned, are indicative and vary from bank to bank. During loan processing, additional documents are required.

The eligibility criteria for a loan against property also depends on the fact whether one is salaried or self-employed. For salaried individuals, one should be between the ages of 33 to 58 years; one preferably has to be an employee in an MNC, a private company, or a public sector; one has to be a resident of India. For self-employed individuals, one has to be between the ages of 25 to 70 years; the individual should have a regular source of income; one again has to be a resident of India. 

"LOAN AGAINST PROPERTY INTEREST RATES" also varies from bank to bank. Approximately the range of interest rates vary from 9.80% p.a to 14.50% p.a, and the repayment tenure offered is between 2 to 20 years. However, the lowest interest rate currently in India is 8.70% p.a, with the processing of up to 1% of the loan amount, loan tenure of up to 15 years, lowest EMI per Lakh for Rs. 880 for 20 years and zero prepayment charges. However, loans for house construction or purchase are available at a lower rate of interest under home loan rather than against a mortgage loan.