Home Loan

Loan against Property Eligibility Criteria and Documents Required


If you want a property loan, you need to show the lender that you meet the loan against property eligibility criteria. Each loan application has a list of documents you need to submit to show you meet the requirements for age, income, reliability, etc. The lender checks these documents before approving the loan.

This article discusses the different loans against property eligibility criteria and the documents needed to get the loan.

What is a loan against property?

A loan against property is a loan you can get by providing property as collateral. The applicant can use a piece of land, a house, or even a commercial space as security for the loan. The asset placed as collateral stays as collateral until you pay back the principal amount and the interest.

Getting a competitive loan against property interest rates can be very difficult, but a loan against property is an effective way to use your property. You can get a loan with a higher amount and longer term if you use the property as collateral.

What do you need to know about loans against the property?

How much money can be borrowed?

A loan against property is approved for about 60% of the property’s market value. Depending on the property value, the loan amount can range from 10 lakhs to 7.5 crores.

What is the interest rate?

The interest rate changes based on how long the loan against the property is for. Interest rates can be lower if you have a stable income, a high CIBIL score, and high credibility.

How long does the process take?

Before approving and releasing the loan amount, every lender checks certain documents. The process takes about three to four days.

Loan against property eligibility criteria

To get a loan against property, you must meet a set of requirements. Generally, loan against property eligibility criteria differs for self-employed people and employees.

Loan against property eligibility criteria (general)

Here are the general criteria you must meet to be eligible for a property loan:

  • You must be an Indian citizen.
  • Your age should be between 28 and 60.
  • You must be able to provide proof of income.

Loan against property eligibility criteria for professionals

  • Professionals who work for either public or private companies should have at least three years of work experience.
  • You should provide income proof. This can be salary slips, income tax return certificates, or other documents.

Loan against property eligibility criteria for self-employed

  • You should be able to provide proof of income for six consecutive months.
  • You may have to submit income tax returns for your business.

Documents to submit when applying for a loan against a property

You should submit proof to prove your eligibility for a loan against property. Here are the documents you will need to provide:

  • Income proof (salary slips for professionals and bank statements for the self-employed)
  • Bank statements
  • Proof of identity (Aadhar card, PAN card, driving license, or other government-issued identity cards)
  • Proof of address (Aadhar card, PAN card, driving license, or other government-issued identity cards)
  • Proof of property ownership (a property deed or other documents)
  • Income tax returns (which can vary from 1 year to 3 years, depending on every application)

Other than this, you may also be asked for additional documentation if the lender questions your eligibility.

Benefits of a loan against property

Take a look at some of the benefits of acquiring a loan against property:

Less expensive loans

One of the best advantages of getting a loan against property is that the interest rate is usually low. Since this kind of loan is considered a secured loan, the interest rate is lower than for other types of loans. Lower interest rates mean lower EMIs, which make it easier for people to pay back what they borrowed.

Continued use of the property

Any property can be used as security to get a loan against the property. You will not lose property ownership if you take out a mortgage loan on it. You can also keep using the property even though it is being used as collateral for the loan. If you need a high amount, you can also put up two or more properties as security for a loan. However, an appraisal is done individually for each.

Longer tenure

A loan against property has a longer tenure than most other loans. It is because a loan against property is a secured loan. This loan may also have a lower rate of interest.

Higher amount

A loan against a property makes it easier for you to borrow large sums. This is especially true if you have large expenses, such as personal or business requirements. Since it is a secured loan, you can borrow between 75% and 100% of the market value of your property.

Things to keep in mind 

If you want a loan against property, you should keep the following things in mind:

  • Look at the lender’s eligibility criteria before you apply for the loan. You have a better chance of getting approved if you meet all the requirements.
  • Find out how much your property is worth beforehand. Every property loan starts with a property appraisal. You need to know the property value before you apply for a loan against property.
  • Get a rough idea of the amount you need. If you know how much you need, you can determine whether your property can be used to get that loan.
  • Compare different lenders before deciding on one. Different lenders provide various loans against property interest rates. Do thorough research before you select one.


The loan against property eligibility criteria is straightforward. However, understand your eligibility before applying. If you’re not eligible for a loan against property, you can always apply for a personal loan with Piramal Finance.