1. What is Loan Against Property?

A Loan Against Property is a kind of secured loan that you can avail against a commercial or residential property. This property is kept as collateral with the lender, and the funds so obtained can be utilised for a variety of purposes such as business expansion, funding your wedding, child’s education etc. 

2. How to get Loan Against Property?

You can avail a Loan Against Property by mortgaging a residential, commercial or industrial property. All you need to do is furnish the relevant documentation with the lender which includes KYC documents, proof of income/salary etc.

3. What are the documents required for loan against property for salaried employee?

The documents required for a Loan Against Property for salaried employee are are:

  • Latest salary slip

  • Last 3 months bank account statements

  • PAN card/Aadhar Card

  • Address proof such as telephone bill, electricity bill, gas bill, passport, Aadhar card, driving license, voter ID, lease rental agreement, home ownership papers

  • Property documents for mortgaged property

  • Income Tax returns for the past 3 years 

    4. What are the documents required for a lap loan against property for self employed?

  • A Loan Against Property for self employed requires the following documents:
  • Bank account statements for the last 6 months

  • PAN/Aadhar Card

  • Address proof documents like passport, electricity bill, gas bill, telephone bill, property ownership papers, Aadhar card, driving license, voter ID

  • Property documents which is to be mortgaged

    5. How is loan against property eligibility calculated?

  • The eligibility for Bajaj Finserv Loan Against Property is calculated by checking the eligibility criteria for this type of loan. The eligibility criteria are different for self employed loan applicants and salaried applicants.
  • Loan Against Property eligibility for salaried employees:
  • Age of the applicant to be between 33 years to 60 years

  • Must be employed in an MNC, private or public sector company

  • Place of residence must be Delhi, Gurugram, Faridabad, Greater Noida, Noida, Ghaziabad, Mumbai, Thane, Navi Mumbai, Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata, Jaipur, Chandigarh, Coimbatore, Nagpur, Surat, Cochin, Baroda, Indore, Vizag, Nasik, Aurangabad, and Lucknow.

  • Loan Against Property eligibility for self employed persons
  • Age of the applicant must be between 25 years to 75 years

  • The business must have a regular source of income

  • Place of residence must be Delhi, Gurugram, Faridabad, Greater Noida, Noida, Ghaziabad, Mumbai, Thane, Navi Mumbai, Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata, Jaipur, Chandigarh, Coimbatore, Nagpur, Surat, Cochin, Baroda, Indore, Vizag, Nasik, Aurangabad, and Lucknow.

    6. How much loan can I get against property?

    Different lenders have varying maximum limits for Loan Against Property; Finserv MARKETS can provide access to a higher amount of Loan Against Property of up to Rs 1 crore at affordable interest rates, flexible repayment options and quick loan disbursal.

    7. Can I take a loan against my house?

    Yes, Loan Against Property is a loan you can avail against either your self-occupied or rented residential properties. 

    8. How can I get a loan against my property without proof of income?

  • Income is a key determinant in assessing your eligibility for a Loan Against Property, therefore, it is essential to furnish IT Returns and/or latest salary slips, but without such proof, you may need to fulfil certain documentation and eligibility parameters.
  • You can try to apply with a co-applicant, have a proper justification and a personal conversation with the relationship manager, convincing them of timely repayments without defaulting. Also make sure you hold a bank balance, which is double the expected loan EMIs.

9. Can I take out a loan against my land?

Yes, you just need to ensure that the title of the property is clear, free of any litigation, and should not have an existing mortgage or loan.

10. How long does it take to get a Loan Against Property?

If you follow the proper steps - furnish documentation and personal details, verification - then the disbursement can happen as soon as 24 hours at Finserv MARKETS.

11. What are the property types you can take Mortgage Loan?

You can use the following properties as collaterals for your Mortgage Loan:

  • Self-occupied residential property, including house, apartment, flat, etc.

  • Rented residential/commercial properties

  • Commercial property such as offices, shops, malls, complexes, etc.

  • Shared property

  • A plot of land under your ownership

You cannot, however, avail a Loan Against Property against the following:

  • Property outside city/municipality limit

  • Property with tenants for more than 5 years (with no renewed rent agreement)

  • Property with structural flaws that require substantial repairs

  • Property constructed on agricultural land/farmland

  • Illegal properties or a property already mortgaged with other banks

  • Residential property used for commercial purposes without approval from a competent authority

  • Under construction property except for NRP transaction

  • Industrial property

  • Schools or hostels

  • Hotel

    12. What is the difference between a Home Loan and Loan Against Property?

    There are several differences between Home Loan and Loan Against Property, the most fundamental of them is the purpose they serve. A Home Loan is borrowed to buy a house, a plot or for construction, whereas a Loan Against Property is a secured loan that lets you borrow money for any major expense under the sun including renovation, personal expenses, business expansion etc, with your property as the collateral. With Home Loans, repayment tenures are longer and tax exemptions are present. You can peruse the other differences between these two in detail here

13. Is it a good idea to take equity out of your house?

Since your home is put up as collateral, taking equity out of your house can be an easy way of qualifying to access large amounts of money.

14. How can I get a loan against my property without proof of income?

Income is a key determinant in assessing your eligibility for a Loan Against Property, therefore, it is essential to furnish IT Returns and/or latest salary slips, but without such proof, you may need to fulfil certain documentation and eligibility parameters.

You can try to apply with a co-applicant, have a proper justification and a personal conversation with the relationship manager, convincing them of timely repayments without defaulting. Also make sure you hold a bank balance, which is double the expected loan EMIs.

15. How does Loan Against Property work?

A Loan Against Property is a convenient way of accessing funds for personal or business expenditures of sizeable magnitude. If you meet the eligibility criteria, you just need to furnish some documents reflecting your income and the property ownership. After this, your credit score is computed and a loan sanction is made. Upon your acceptance and after the verification of all documents, the loan is disbursed. You can repay this loan in accordance with amortization schedule.

16. Is LoanAgainst Property taxable?

For a Loan Against Property, the taxability depends on the purpose of the loan. If used for personal purposes like marriage or education of your child, tax benefits cannot be claimed on the interest. If the money is used for funding another house property, then, the same can be claimed under Section 24(b) of the Income Tax Act.

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