loan against property

A Complete Guide on How to Take a Loan Against Property

India’s loan against property market is estimated to grow at a CAGR of more than 14% and reach an overall valuation of USD857.87 billion by the fiscal year 2026. Nowadays, borrowers opt for appropriate financial instruments that allow them to meet several personal and professional requirements. One such beneficial financial option is a loan against a property.

In this form of credit, individuals can mortgage their property and avail funds against its value. The sanctioned funds can be used to meet any financial requirements without any restrictions. However, borrowers need to know how to apply for loan against property online and its associated requirements to raise funds through this financing option. Hence, to streamline this loaning procedure, follow the complete guide discussed below. 

Things to know about loan against property eligibility

To avail a loan against property without any complication, both salaried and self-employed individuals must meet accompanying eligibility parameters. Fulfilling all the eligibility parameters will increase borrowers’ chances of quick approval and hassle-free financing.

The most crucial qualifying criteria include – 

Salaried applicants 

  • An applicant’s age should be between 28 and 58 years
  • One should be a salaried employee in the public sector, private company or an MNC
  • He/she should be a resident of India

Self-employed applicants

  • An applicant’s age should be between 25 and 70 years
  • One should be a self-employed individual with a fixed source of income
  • He/she should be a resident of India

Applicants are required to submit a set of documents to complete the loan application process. 

Required documents to apply for a loan against property online

With minimal paperwork, a loan against property requires the following list of documents that keep the loan processing convenient and simple.

For salaried individuals 

  • Identity proof 
  • Residence proof
  • Current salary slips
  • IT returns statement
  • Mortgaged property documents
  • Title documents asked by a legal team
  • Bank account statement of last 3 months 

For self-employed individuals

  • Residence proof
  • KYC documents
  • IT returns
  • Bank account statements of the last 6 months
  • A copy of property documents to be mortgaged

Note: When applicants apply for a loan against property online, they may be asked to furnish additional documents by financial lenders.

To make the repayment procedure smooth, borrowers can always take help from an online loan against property EMI calculator to have a clear idea about the monthly liability and repayment capability. 

How to apply for a property loan?

Borrowers can apply for a loan against property online by completing the following steps: 

Step 1: Applicants need to go to the lender’s official website.

Step 2: They need to navigate to the loan against property page and fill the online application form with necessary details such as name, contact details and date of birth.

Step 3: They have to provide their income details to help choose the best deal based on one’s financial standing.

Step 4: Lastly, they have to click on the ‘Submit’ button. 

Once the application process is completed, a representative from your respective financial institution will contact you to proceed with the loan application further.

Features and benefits of loan against property

These are the most common features and associated benefits of property loans – 

  • Affordable interest rate: One of the primary things that borrowers need to consider is the interest rate. Being a secured advance, borrowers can enjoy the lowest loan against property interest rate as lenders got minimal risk, and any losses may be recovered by claiming the property. 
  • Flexible repayment tenor: A key benefit of opting for a loan against property is that you can choose to repay it over a long tenor. Based on the lender, the repayment tenor of this credit can be extended up to 20 years. The flexible repayment tenor and low-interest rate will make it easier for borrowers to pick a suitable plan.
  • Balance transfer facility: Borrowers can choose a loan against property balance transfer option if they want to switch lenders and refinance the loan amount at a lower interest rate. Also, such a facility comes with a top-up loan feature that helps account for additional financial requirements. 
  • Tax benefits: Borrowers who had applied for this credit to meet business expenses are entitled to claim tax benefits on interest payments under Section 37(1) of the ITA.  

Apart from these essential pointers, existing borrowers can receive pre-approved offers extended by leading HFCs. These lucrative offers help to save time during loan application and maximise borrower’s convenience. Available on home loans, loans against property, and the like, borrowers can check their pre-approved offer with their name and contact details. To wrap it up, a property loan proves to be a suitable financial option for most individuals. However, besides finding out how to apply for a loan against property online, individuals must also check all the applicable rates and charges accompanying this credit. Also, they must be well-aware of the types of loans against property to choose a suitable product as per their requirement.