Loan

Business expansion

Home purchase

Child Education

Home construction

Personal expenses such as wedding or vacation

Home renovation

Medical emergency

Plot purchase

Parameters

Eligibility Criteria

Minimum and Maximum Age

Individuals with minimum age of 21 years and maximum upto 65 years
Note: However, there are few banks which also give loans to individuals of 18 years and /or individuals up to 70 years of age.

Loan Tenure

Banks give loan upto a period of 15 years depending upon your age
Note: However, some banks may not offer a loan against property for more than 7 years or 9 years. Only selected banks offer mortgage loan up to 20 years.

Net Monthly Income

• Banks prefer minimum income of Rs. 40,000 for salaried persons and Rs. 3 Lakh p.a for self employed
• Minimum FOIR is 60%. FOIR is fixed obligations to income ratio. Fixed obligations include existing EMI on other loans, proposed EMI and rent.
• In cases, where income is more than Rs. 40,000, banks offer loans up to a maximum FOIR of 65%

Employment Type and History

• Loan against property rate of interest are typically in the range of 8.70% to 15.15% per annum
• For salaried applicants, minimum work experience required is 3 years
• For self employed, business existence of minimum 5 years and ITR of 3 years is required

Note: Eligibility conditions for self employed may be different from that of salaried customers Also, note that mortgage loan rates may be higher for a salaried customer as compared to a self employed or a business men. The reason is that salaried customer tend to take a loan for personal purposes while self employed borrower are more likely to take a this type of loan for business purposes.

LTV

Banks typically give mortgage loan for a LTV of 60-70%.
The LTV ratio differs by type of property. LTV ratio is highest for loans taken against residential property, while LTV ratio is lowest for loan against commercial property.

• For industrial property – 50 - 55%
• For residential property – 60 - 75%
• For commercial property – 60 - 70%

CIBIL Score for Loan against property

Banks gives loan based on market value or registered value of the property, whichever is lower.

• Bank consider 650 and above credit score to be eligible for mortgage loan

Note: In case of low CIBIL score, you can be eligible for few banks or NBFCs with some additional conditions like higher interest rate and higher margin

Identity Proof

PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card

PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card

Certificate and Proof of Business Existence

PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI

Address Proof

Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old)

Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter

Age Proof

PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate

PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate