In need of some emergency cash fund? Well, a loan against property can get you some immediate financial flow. Under this kind of loan, you have to provide must provide your home or property as a form of collateral. The financial institution then issues a loan against the same. Whether your need this amount to financial your new business, fund a wedding or fulfil a financial emergency, there is no restriction on the ways in which you can use the money. This is one of the major reasons why loan against property has become such a popular option for individuals seeking a loan.
Here is the eligibility criteria that most financial institutions require you to meet to qualify for a loan against property.
If you are self-employed – As an owner of a business or if you are self-employed, you can apply for a loan against property if you are above the age of 21 years. You should also be under 65 years. The bank must be convinced that you have a regular income and for this reason, you will have to produce bank account statements and salary slips. The company should have made profits for at least 3 years.
If you are a salaried employee – A permanent salaried employee with any form of property in the country can apply for a loan against land or property. You must be employed a either a government organization, a private sector or a multi-national corporation. Even professionals that include cost accountants, doctors, engineers and dentists to name a few are considered as viable applicants for this loan. The age factor is crucial and you should be above the minimum age requirement of 21 years.
Property mortgage loans or a mortgage loan against property is packs with it several benefits. You can avail a loan of anywhere from INR 10 lakhs to INR 5 crore depending on your bank. Additionally, you can use any kind of property collateral, irrespective of commercial, residential or industrial. It is usually disbursed within 21 working days. However, you must ensure that you provide the bank with all the necessary documentation such as identity proofs and proof of address, while meeting the eligibility criteria. You will also have to submit documents of the property against which you will be availing the loan.