Eligibility Criteria:

Eligibility criteria for a loan against property may vary among lenders, but common approximate criteria include:

• Property Ownership: The property should be owned by the borrower or co-owned with family members.
• Property Type: Residential, commercial, or industrial properties are generally accepted as collateral.
• Property Value: Lenders usually consider properties with a minimum market value of ₹20 lakhs to ₹1 crore or more.
• Income and Repayment Capacity: Borrowers should have a steady income and repayment capacity to ensure timely loan repayments.
• Credit History: A good credit score enhances the chances of loan approval.

Required Documents:

Required documents for a loan against property generally include:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, or Driver's License.
• Proof of Address: Utility bills, Rental Agreement, or Bank Statements.
• Property Documents: Sale Deed, Title Deed, Property Tax Receipts, Approved Building Plan, and Encumbrance Certificate.
• Income Proof: Salary Slips, Bank Statements, Income Tax Returns, or Form 16.
• Photographs: Passport-sized photographs.
• KYC Documents: PAN Card, Aadhaar Card, and Photographs of the borrower(s).
• Collateral Documents: Property-related documents such as ownership proof, property valuation report, etc.

Where and How to Apply for a Loan Against Property:

Loan against property can be applied for through various channels:

• Banks: Visit the nearest branch of a bank and apply in person.
• Online Lenders: Apply through the official website of online lenders.
• Loan Aggregators: Utilize online platforms that provide loan comparison and application services.
• The application process involves filling out the loan application form, submitting the required documents, and providing property-related information. Lenders may conduct property valuations and legal verifications before approving the loan.

Interest Rate and Other Charges:

• The interest rate on a loan against property varies based on factors such as the lender, loan amount, tenure, creditworthiness of the borrower, and the property's value.
• As of the current market trends, the average interest rate on a loan against property in India ranges from approximately 8% to 12% per annum.
• Other charges may include processing fees (around 0.5% to 1% of the loan amount), property valuation fees, legal and documentation fees, and charges for late payments. These charges differ among lenders and should be reviewed in the loan terms and conditions.