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Introduction

Loan Against Property (LAP), where an individual uses their property as collateral, is a great way to finance business expansion, meet operational expenses, or tide you through a financial crisis. To be eligible for a Loan Against Property, banks and financial institutions have a number of eligibility criteria that applicants must meet. Some of the criteria include an applicant’s age, income, creditworthiness, and others. ICICI Bank has eligibility criteria, which you can check to see if you are eligible for a Loan Against Property. So, check the criteria and apply for the loan on Finserv MARKETS.

Age Criteria for ICICI Bank LAP Eligibility

In order to be eligible for an ICICI Bank Loan Against Property, the first and foremost criteria that applicants must meet is their age. The minimum age set by the bank to be eligible for LAP is 23 years. The maximum age for salaried individuals and self-employed individuals is 60 years and 65 years respectively.

Income criteria for ICICI Bank LAP Eligibility

ICICI Bank provides LAP on the basis of your net monthly income. The minimum net monthly income must be Rs. 25,000 per month for salaried applicants. The minimum PAT for self-employed applicants must be Rs. 25,000 per month. Another important criterion for LAP eligibility is the nature of job and income stability. ICICI Bank mandates a minimum of 1-year full-time employment for salaried and self-employed applicants.

Property Value Criteria for ICICI Bank LAP Eligibility

ICICI Bank will provide a LAP based on the loan-to-value (LTV) ratio of the property. At no point will the entire value of the property be considered when calculating the loan amount. The LTV is 60%. To understand this better, let’s look at an example. Property A is a residential plot that has a net market value of ₹50,00,000. The LTV of this property is 60%. The net financing that this property is eligible for is ₹30,00,000, which is 60% of its net value.

CIBIL Score Criteria for ICICI Bank LAP Eligibility

An individual’s CIBIL score is another important criterion that ICICI Bank takes into account when deciding the eligibility of a borrower. The CIBIL score is a record of a borrower’s credit history which details all credit transactions (good and bad) undertaken by a borrower. The credit rating agency, CIBIL, maintains a database of all borrowers’ credit transactions and provides a score against each borrower to highlight creditworthiness. Maintaining a good credit history and a good credit to debt ratio will result in an increase in credit score. Defaulting on a loan payment or a bounced cheque will have the opposite effect.

All Banks and Financial and Non-financial institutions check an individual’s credit score before deciding on whether a borrow is worthy of credit. A credit score of 700 and below is considered risky for most banks and will invariably lead to rejection of a loan application. A credit score above 720 is generally considered good. An individual’s credit score takes a hit every time they go in for a credit check. It is therefore important to only apply for loans when you absolutely need them. Lenders will invariably check your credit score to know the eligibility for LAP. So, if you’ve applied for multiple loans at different places, your score will drastically be lower than you expect.

FOIR Criteria for ICICI Bank LAP Eligibility

ICICI Bank takes into FOIR (Fixed Obligations to Income Ratio) parameters to determine loan eligibility. The bank will take into account all of the borrower’s monthly obligations like school fees, car payments, and other fixed obligations, and calculate them to a borrower’s monthly income. In order to be eligible for a LAP, ICICI Bank requires borrowers have a FOIR of at least 65%. The FOIR eligibility parameter is often where most applications get rejected. This is because the bank may feel that the monthly payments for a LAP far exceed the capacity of a borrower to pay back the loan. In order to avoid your LAP application from getting rejected, it is best to go over the ICICI Loan Against Property Eligibility Criteria to see if you meet the bank’s FOIR recommendations.

Final Thoughts

ICICI Bank LAP is a great source of credit when in need of funds. To meet the growing customer demands, the bank has set up various online banking features that make application and tracking of application a breeze. The Bank also offers some of the best interest rates in the industry, with low EMIs, and the option to pay back in easy 15 years tenure. Apply for an ICICI Bank LAP today to meet all your long-term and short-term financial needs.

Frequently Asked Questions

  • ✔️What eligibility criteria should an applicant meet before applying for an ICICI Bank LAP?

    ●        Applicant’s age

    ●        Applicant’s monthly Income

    ●        Applicant’s FOIR (Fixed Obligations to Income Ratio)

    ●        Applicant’s Credit Score

    ●        Value of property

  • ✔️What should be the minimum net monthly income of the customer to get an ICICI Bank mortgage loan?

    For a salaried individual to be eligible for LAP, his/her minimum income should be ₹25,000.

  • ✔️What is the minimum and maximum age required for an ICICI Bank LAP?

    To be eligible for ICICI Bank LAP, the applicant must be between 23 and 60 years of age, if salaried and between 23-65 years, if self-employed.

  • ✔️What is the tenure of ICICI Bank LAP?

    The maximum tenure of an ICICI LAP is 15 years.

     

  • ✔️ What is the maximum LAP amount can be availed by an applicant?

    The maximum amount that can be availed for a LAP is 60% of the total value of the mortgaged property.