Top Factors That Affect Your Loan Against Property Eligibility

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09 JUNE, 2021

You can fund your various requirements such as house building, marriage, education in many ways. One such method is to avail a Loan Against Property. It is a secured credit wherein your property remains as a collateral until you repay the loan. However, lenders will process your Loan Against Property application only if you meet the eligibility criteria set by them. Some of the most common factors that affect the Loan Against Property eligibility are mentioned below:

Age
Age is a crucial factor that influences your Loan Against Property eligibility. Self-employed borrowers should be at least 21 years old while applying for a Loan Against Property, and not more than 65 years old at the time of loan maturity. For salaried individuals, the eligible age bracket is between 18 years and 60 years.
Credit score
Your credit score provides the lender a better understanding of your financial health. A credit score of 750 or above can enhance your eligibility for Loan Against Property. Lenders may consider you a low-risk applicant owing to your high credit score. This can also help you avail a loan with more favourable terms and a competitive interest rate. Keep in mind that late payments, payment defaults, cheque bounces, etc., can have an impact on your CIBIL score..
Income
The higher your income, the better will be your loan eligibility. Moreover, lenders usually set a minimum income criterion in order to be eligible. To avail a Loan Against Property with Kotak Mahindra Bank, an individual (irrespective of employment type) should have a minimum monthly income of Rs 20,000 in cities such as Mumbai, Delhi, Bangalore, Pune and Chennai, while the minimum monthly income required in other cities is Rs 15,000
Employment status
Your job stability also affects your loan eligibility. If you are employed with government or government-backed entities, a reputed private organisation or public-sector company, you will stand a better chance of getting your loan application approved. In addition, the number of years of your association with the organisation can determine your loan repayment ability. However, if you tend to switch jobs frequently, it could hamper your chances of getting the loan approved as it could indicate financial instability.
Property documents
In case of a Loan Against Property, the approval chances of your loan application increase when you submit authentic and valid property documents. Some basic documents related to a property include permissions, registrations, No Objection Certificate (NOC) of the home loan on the property, if any, etc. Your loan eligibility could be severely impacted if your property is involved in any legal dispute.
Property insurance
The property insurance provides coverage to the asset and helps recover the money in case of any damage to the property. Having an insurance for the property helps safeguard your financial interest. Your Loan Against Property eligibility may also increase if you have insured the property against which you wish to borrow the loan amount.
The amount availed through a Loan Against Property can be used for a variety of purposes such as funding your kid’s higher education, starting a business, managing wedding expenses, etc. With hassle-free documentation, simple online application process, instant disbursal, Kotak Mahindra Bank offers a Loan Against Property up to Rs 5 crore. So, check your eligibility and apply for a Loan Against Property to meet your monetary requirements with ease, today.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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