What is a Property Loan?

A Property Loan (also known as Loan Against Property) is a secured loan offered against a residential or commercial property owned by the applicant. It allows individuals and businesses to unlock the value of their property to meet personal or business financial needs while continuing to own and use the property.

Benefits of Property Loan

  • High Loan Amount: Get funding based on the market value of your property.

  • Lower Interest Rates: More affordable compared to unsecured loans.

  • Flexible End Use: Funds can be used for business expansion, education, medical needs, or personal expenses.

  • Longer Repayment Tenure: Tenure up to 15–20 years, making EMIs manageable.

  • Continued Property Ownership: You retain ownership while using its value.

  • Better Eligibility: Higher approval chances due to property security.

  • Suitable for Individuals & Businesses: Ideal for salaried, self-employed, and professionals.

Eligibility Criteria for Property Loan

Eligibility may vary by lender, but generally includes:

  • Applicant must be an Indian citizen

  • Age:

    • Salaried: 21 to 60 years

    • Self-employed: 21 to 65 years

  • Property Type: Residential or commercial property with clear title

  • Income Stability: Regular income and repayment capacity

  • Credit Score: Preferably 650 or above

  • Ownership: Applicant must be the legal owner of the property.

Documents Required for Property Loan

Documents may vary based on lender policy and applicant profile.

1. KYC Documents (Mandatory)

  • PAN Card

  • Aadhaar Card

  • Passport / Voter ID / Driving License

  • Passport-size photographs

2. Income Documents

For Salaried Applicants

  • Salary slips (last 3–6 months)

  • Bank statements (last 6 months)

  • Form 16 / Income Tax Returns

For Self-Employed / Business Owners

  • Income Tax Returns (last 2–3 years)

  • Profit & Loss Statement

  • Balance Sheet

  • Business bank statements (last 6–12 months)

3. Property Documents

  • Sale Deed / Title Deed

  • Agreement to Sell (if applicable)

  • Encumbrance Certificate

  • Approved Building Plan

  • Occupancy / Completion Certificate

  • Property tax receipts

  • Possession Letter

4. Property Ownership & Address Proof

  • Utility bills (electricity/water)

  • Municipal tax receipts