Eligibility and Criteria for Loan against Property in Delhi

Are you planning for your children’s big Indian style wedding? Want to send them abroad for better education? May be a long vacation with a dream purpose with your family is the next thing in your TO DO List? Or you may be thinking of how you should get bigger, your small business to make it an enormous success. Is the worry of arranging such a gigantic amount to make your dreams come true worrying you? If yes, then Loan against property (LAP) is the solution for all of your worries.
It is a secured loan type which typically has a longer tenure and lesser interest rate than a personal loan. Anyone who owns a property (self-occupied or commercial), can apply for this loan. LAP applicant has known a certain fussy percentage of the market value of property.
Generally there are various parameters set by banks to apply for loan associated products. However, there are sure eligibility criteria that are common for every customer who is applying for all LAP products. Below, we have enlisted some of these regular criteria for your reference.
Eligibility Criteria for LAP/Overdraft
The most important criteria necessary while applying for LAP are that the property should be a freehold and it has to be self-owned by the applicant.
Other vital common parameters are:
1. Who can apply for LAP?
To successfully apply for Loan against property or Overdraft loan, you require being at least one of the following:
Salaried or Self Employed Entities
Salaried Corporate Employees or Salaried Government Employees
Salaried Consultants
Proprietors
Private Limited Companies/ Directors/ Partnership Companies/ Partners (Minimum 51 % Shareholder or partner should be loaned applicants)
2. Who have bleak chances of getting LAP?
Some applicants with even high collateral value are deprived of loan for various reasons. Here’s counting who all are ineligible for securing a loan against property.
Salaried Individuals receiving salary in Cash or Kind only. Or other salaried individuals not receiving a regular salary.
Self Employed with Negative Profile or those involved in High Risk Industries (Real Estate Developers / Small BPOs / Share Traders)
Self Employed organizations in net Losses
Politically exposed People
3. Common Attributes of LAP Applicant
There are certain common attributes of successful LAP applicants. We shall count the same below.
Age: Generally the age of Applicant is between 20 to 55 years.
Residence status: Must be Indian Resident when applying for loan.
4. Documents Required to Apply for LAP
Below is the list of credentials that are usually required to apply for LAP.
LAP application form
Passport size photograph(s)
Proof of Identity, date of birth, residence and applicant’s signature: Passport, driving license, voters ID, PAN card.
IT Returns / Computation Of income / Complete set of Audit reports or P&L AND Balance Sheet Duly attested by regular CA for last 3 years
Last 2 years form 16
Business Continuity Proof (for last 3 years), latest VAT / excise / Service Tax Returns for last one year depending on the nature of business.
Property documents
Receipt of Booking/Advance payment (If any)
We recommend you evaluate selected LAP products on the basis of their tenure, interest rate, repayment policies, and terms and conditions before opting for the right one. And if that sounds like too much work, simply contact and we shall help you at every step along the way.