Criteria to Fulfil to Qualify For a Loan Against Property | Kotak Mahindra Bank - Home Loan Stories
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20 APRIL, 2022

Sometimes, however hard you work, your savings can fall short to meet certain crucial financial goals. These could be your child’s education, marriage expenses, starting a new business or tackling any sudden emergency. In such circumstances, a loan against property can prove to be useful in providing you with the necessary funds. A loan against property is a secured loan wherein you can borrow money from banks or financial institutions by providing your property as collateral. You can mortgage a commercial or residential building, land or a house, a self-occupied or a vacant property.


Your eligibility for the loan and the eligible amount depends upon several factors like your creditworthiness i.e., your credit score, the value of your property, your income and ability to repay your loans, etc. Your eligibility criteria are also based on whether you are a salaried individual or a self-employed applicant.


Following are the eligibility criteria that you need to fulfil to get a loan against property.


Eligibility criteria of loan against property for salaried individuals:

  • Any salaried professional with permanent employment in an organisation can apply for a loan against property. Private practices like architects, accountants, doctors, management consultants, company secretaries etc., can also get the loan.
  • Applicant’s age should be at least 21 years and not more than 65 years.
  • The individual should earn a minimum income of Rs. 1.8 LPA. They should also furnish company profits for the last two years and company records of the last three years.


Eligibility criteria of loan against property for self-employed individuals:

  • The applicant’s age should be at least 18 years and not more than 60
  • They must have a regular income from the business of at least Rs. 40,000. Lenders also look for applicants who have work experience of a minimum of 2-3 years
  • The applicant should hold a graduate degree if they are working in a private limited company or a partnership firm


What are the documents that you need to furnish with the application form?

In addition to the above-mentioned eligibility criteria, you might also need to furnish documents like:

  • Income proofs like salary slips or bank account statements
  • Identity proofs like Aadhaar and PAN
  • Address proofs like passport, ration card, driving licence, etc
  • Property documents like registration certificates, lease agreements, sales deeds, property tax receipts, property insurance documents, etc


Factors affecting loan terms:

The loan against property interest rate, tenure, and the amount of loan, depends on various factors like -


  1. Age and location of the applicant
  2. Income and source of income
  3. Existing debts
  4. Purpose and tenure of the loan
  5. Market evaluation of the property
  6. Age of the property
  7. Vulnerability of the property from natural calamities, etc


Fulfilling the eligibility of a loan against property is probably the most crucial step to avail one. Before processing your application, lenders want to ensure that you are eligible for the loan. If you are ineligible, they can reject the loan application. Therefore, it is vital to check the eligibility before applying for a loan against property.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.