The No-Confusion Guide to Loan Against Property Eligibility and Documents Required

A loan against property is famed as one of the most uncomplicated loans in India. 

You can get a high loan amount, extended loan term, flexible repayment options, simple documentation, easy eligibility, and flexibility in end-use. 

The application and approval process is uncomplicated and fast. Any Indian citizen can pledge a residential or commercial property to apply for a loan against the property for better property management.

Read on to know about the eligibility criteria and documents required to apply for a loan against a property.

Loan Against Property – Eligibility Criteria

When you apply for a loan against a property, the lender evaluates your eligibility and determines the interest rates.

The following are the primary eligibility criteria of a loan against property:

  • The applicant must be an Indian citizen.
  • The applicant’s age must be above 21 and less than 60.
  • The applicant must own a residential or commercial self-occupied, vacant, or rented property.

Besides the three primary factors, the following factors also play a prominent role in determining loans against property eligibility and interest rates.

1. Borrower’s Credit Score

A 750+ credit score is considered a decent credit score. It assures the lender that the borrower can manage their finances properly. It also signals that the borrower takes their loan repayment seriously.

2. Monthly Income

Indian lenders often want a borrower to earn a minimum amount every month to be eligible to apply for a loan against property. The minimum income varies between INR 15,000 and 50,000 every month.

3. The Nature of Work

Loan against property interest rates and eligibility depend heavily on the borrower’s nature of work. For example, loans to full-time salaried professionals are approved faster than those in a part-time job or freelancer.

4. Loan Amount

A loan amount above 50% of your net monthly income can provoke your lender to scrutinize the loan application more. Although you can apply for a loan against property for an amount of up to 60% of your property value, it is wise to keep the loan amount at less than 50% of your net monthly income.

5. roperty Location

The property’s location also determines the loan against property eligibility and interest rates. For example, a property in a prime location with all modern amenities has a higher value than one in a nondescript locality.

Loan Against Property – Documents Required

The following are the documents required to apply for a loan against property:

  1. Application form – You can download it online or collect it from a branch.
  2. Latest passport-size photograph.
  3. Age Proof – PAN Card, Birth Certificate, Passport, etc., are considered valid.
  4. Residence Proof – You may submit Electricity Bill, Ration Card, Passport, Aadhar Card as the residence proof.
  5. 2 months’ bank account statement (6-months for salaried professionals)
  6. 3 years’ Income Tax Returns.
  7. Proof of Employment (for salaried) and Proof of Business (for self-employed) – Appointment Letter, Salary Slips, Profit & Loss Statement, etc.
  8. Processing fee cheque
  9. Property documents, including Title Deed, Registration, etc.


When you choose the right lender, applying for a loan against property becomes a seamless process. You can also use a free loan against property calculator to know the eligibility, interest rates, and the EMI. 

Ensure to read all loan terms carefully before submitting the loan application.




  • Master’s degree in tax law from Thomas Jefferson School of Law


  • Bitcoin Specialist
  • Financial & Investment Advisor


  • Joseph Williams is an entrepreneur and investment advisor
  • Joseph has worked as a professor of Accounting & Law at the University of North Georgia


  • With more than 20 years of experience in finance and insurance, Joseph has a keen interest in anything that talks about numbers. After completing a master’s degree in law, he went on learning about bitcoins and is now involved in writing financial and insurance-related articles.

Words from Joseph Williams

  • “You should never stop learning, no matter what age you are. Just focus on what you learn and share your knowledge with the world so that this world can be a better place to live.”

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