Banks and financial institutions offer Loan against Property (LAP) after mortgaging your freehold residential or commercial property. LAP is far better option than any other loan to meet up your unexpected and desired expenses. These loans are very easy to avail and repay. One of the most sought out loans in our country as customer mortgages his real estate property to avail LAP and real estate prices has a very fewer chance to dip which makes them more easier and safe.

The loan eligibility is calculated on the basis of percentage of the value of the property you own and how much is your income so that you can repay the loan comfortably. Let’s see the eligibility factors for salaried class-

1. Profile

Borrower should be a resident of India. He or she should be an employee of a Public Limited company, Multinational company or Private limited company. Salaried Doctors, CA, Engineers, Government sector employees including Public sector undertakings and Central and local bodies are eligible for loan against property.

2. Age

Applicant should be minimum 23 years of age while applying for LAP. Many public sector banks even offer LAP to individuals who are 21 years of age. But mostly applicants who are 23 years and above are eligible for this loan. Maximum age at loan maturity should be 58 years in case of salaried individual and 60 years in case of public limited and government employees.

3. Years in employment

Minimum 3 years of work experience is required before applying for loan against property. Applicant should be a confirmed permanent employee of the organisation.

4. Monthly income

Minimum gross annual income should be 1, 20,000/- . Maximum income has no ceiling. Even if your net monthly income is 12,000/- you are eligible for loan against property. Repayment capacity of the applicant also plays a major factor while deciding the eligibility of the loan amount.

5. Other monthly outgoings

If an applicant has availed some other loan from any other bank and is still repaying it on monthly basis. This monthly outgoing is also taken into consideration while deciding your eligibility. It is considered on the amount left with you after deduction of any EMI amount that you are currently paying for any kind of loan. Your Loan against property eligibility will be calculated after deductions of all the EMI’s that you are currently paying on monthly basis.

6. Property Value Attributes

Maximum 60 % of the market value of residential property can be funded to the applicant. And 50 % LTV in case of commercial property. This ratio varies from one bank to another.

7. Years in residence

Minimum Applicant should be residing in the current city for the past two years before applying for loan against property. Applicant should be staying in the current residence for at least one year. This factor adds to the credit score which decides the loan eligibility of the customer.

8. Co applicant if any

Applicant can increase the eligibility for loan against property by clubbing a co-borrower. By taking a co applicant the income increases which in return increases the loan eligibility.

Check Your Eligibility

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