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Do rising home prices impact your loan against property eligibility?

By Finserv MARKETS - Jul 26,2019
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Do rising home prices impact your loan against property eligibility?


Loan against property is a great route for people who require a large amount of funds to meet their business as well as personal needs. A loan against property, as the term suggests, is one you borrow by keeping the self-owned property as collateral. It can even be co-owned by you and others in which case all the co-owners of the property will be considered as co-applicants of the loan. The value of the property determines the amount of loan that can be sanctioned. Therefore, while you stay in your own home, you can generate funds by unlocking the property value. This category of loan is purpose-agnostic and utilization-neutral, so it is easier to get access to a higher loan amount at affordable Loan Against Property interest rates. Salaried individuals get a high loan amount up to Rs.1 crore, while self-employed individuals can avail a loan of up to Rs.3.5 crore if you opt for Bajaj Finserv Loan Against Property available on Finserv MARKETS. Since it is a secured loan, the rates of interest are lower than those on personal loans.

Eligibility for a Loan Against Property (LAP)

The Loan Against Property eligibility is calculated by taking the following parameters into account:

  • Age: if you are salaried, you should be between 33 to 58 years of age and if you are self-employed, then you need to be between 25 to 70 years of age to be eligible for the loan.
  • Income: To ensure that you have a regular source of income or salary from an MNC, private company or public sector.
  • Property value: Depending upon the market value of the property, self-employed individuals can avail higher amounts up to Rs. 3.5 crore and salaried people can avail up to Rs 1 crore.
  • Existing obligations, if any: These will influence the extent that you can borrow sustainably.
  • Stability/Continuity of employment/Business: It is generally suggested that the source of income should be somewhat regular in nature rather than being ad hoc or a one-off payment.
  • Past borrowing track record: It influences your credit history.

What property can be used as collateral?

  1. Self-occupied residential
  2. Rented commercial/ residential property
  3. Vacant commercial or residential property
  4. Shared property

An important thing to note is that your property needs to be insured for fire and other calamities during the tenure of the loan, and this proof of insurance has to be furnished with your lender every year. Moreover, you need to ensure that the title of the property is clear, free of any litigation, and has no existing mortgage or loan.

Do rising home prices impact loan against property eligibility?

There is no doubt that if the market price of your property is higher, it makes you eligible for higher amounts, depending on whether you are self-employed or salaried. Rising home prices can have an impact on the amount that you are able to borrow under a loan against property since it is tied directly to the market value of your house, however, it doesn’t meddle with the other eligibility conditions as stated above.


Loan Against Property, by the very nature of it, is tailored to suit your needs, so you can provide wings to your dreams with just the collateral of your property! Being a secured loan, it is low risk for the lender and so you can enjoy faster approvals and lower interest rates. The best part? Use it for any purpose: whether you’re planning to start a new business, renovating your home or taking off for a long-due vacation.

Finserv MARKETS also extend the feature of loan against property balance transfer, whereby you can transfer the unpaid principal amount of an existing loan (referred to as balance) to another bank that offers a much more competitive interest rate, thereby reducing your EMI outflow. Since you are allowed to transfer your balance amount as many times as you wish during the tenure of your loan, this can help save a significant amount of money in the long run. It is a win-win situation for everyone involved! Finserv MARKETS makes the loan against property Balance transfer process completely hassle-free and speedy.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522