These 7 Factors Affect Merit Of Taking Loan Against Property

Such occasions usually come when you and your life’s dreams are far away due to financial constraints. Whenever you are on the verge of taking a big decision in life, then money becomes the most important thing. But the ideal situation is when you have saved money for the time of need. But unfortunately, the life we ​​live is different from the ideal situation. Many times we have a shortage of money and to meet this deficiency we borrow money. Taking a loan is not a big deal. Living with debt has become a minor thing for today’s generation.

There are many ways to get money in times of need. Loan Against Property is the best option among all these options as it has lower interest rate than an unsecured loan. In order to take a loan in lieu of property, obviously you must have a property. But just having property is not a measure of completion of all qualifications. There are many other things that have to be done.

Factors which affect the eligibility of loan against your property

Your credit score

Your credit score is the most important criterion for getting an unsecured loan. But even before the loan is given against the property, the lenders look at the credit score. A credit score shows how your ability to repay the loan is. The credibility of the customer is largely based on the old record of loan repayment.

Source of income

The source of the customer’s income is checked to ensure that he will pay the EMI every month. If you have a property, whose value is very high, you may not get a loan even if the lender is not satisfied with your monthly income.

Property documents

When it comes to taking a loan by mortgaging the property, there should be no legal problems on your property. The lender will first see the property papers. If there are any legal problems on your property, then the application will be rejected. The lender can ask for the title deal, approval of various departments, building plans and other necessary documents.

Loan period

The period of loan you want in lieu of property can be rejected. If you want a shorter duration, the EMI will be higher and the loan amount will be less in the longer term. EMI You can also check with home loan EMI calculator. With this you can decide your budget. If your income is low and you want to take a short term loan then your loan application can be rejected.


Age is also a measure on which you have to live to get a loan. The loan has to be repaid before reaching the age of 60 years. Suppose you are 55 years old when applying for a loan, then you will have only 5 years to repay it.

Job history

If you do a job, the lender will see how long you have been in the job. Changing jobs in the corporate world is the ladder to move forward. But the lender may take this step of yours negatively. To get a loan against property, you should complete two years in the existing company.

Property insurance

Along with other criteria, the lender will also check the insurance of the house, in lieu of the property it is necessary to have the property insured for the loan. Property insurance protects your financial interests. Also protects the lender from facing NPA. Without home insurance, you might not get a loan against the property.

Keep these things in mind

Getting a loan against property is easy and economical. This will not put too much burden on your pocket. But along with all these features, your property remains at risk. Whenever you take a loan by mortgaging the property, keep in mind that you have submitted the documents of the property to the lender. If you are unable to repay the loan due to any reason, then the lender will sell your property to compensate it. So whenever you take a loan against the property, always pay EMI on time. If you take a loan in lieu of the property and repay it on time, then apart from living in it, you can take the best advantage of owning the property.

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