Eligibility Criteria

Loans Against Property (LAP) is a loan offered by banks or other lending institutions for business expansion or the bad time of financial crises. It is offered after mortgaging freehold property, both residential and commercial and better than personal loans or gold loans.

LAPs are, therefore, one of the most sought-after loans in India and are even more affordable today on account of the competition in the loans-disbursal market. Not just affordable, LAP are also very easy (or simple) to avail and repay. This is so because real-estate is mortgaged when you avail LAP and real-estate prices rarely dip which makes them much safer.

Loan Against Property Eligibility

Eligibility criterion for banks and other institutions are almost same for salaried professionals, self-employed professionals and self-employed businesspersons. According to the criteria, you:

  • Should be an Indian national
  • Should be at least 21 years of age at the time of submitting the loan application
  • Should have been employed by your current organization or been involved in your business for a certain number of years
  • Should have the minimum required salary or monthly repaying capacity
  • Should have submitted EMIs for other loans and made your credit card payments on time for three months prior to submitting the loan application.

Mortgage loan Eligibility

The following factors are considered by banks to estimate your mortgage loan eligibility:

Eligibility Criteria

Minimum and Maximum Age18 to 70 years
However, some banks also give mortgage loan at the age of 18 years to self employed and salaried customers
Net Monthly Income
  • Net monthly income of salaried applicants should be Rs. 40,000 or more
  • Minimum annual income of self employed should be Rs 3 Lakh and above
Loan TenureMaximum loan tenure up to 15 years
Interest Rate
  • 8.50% to 15.00%
  • Interest rates varies with the property type. Generally, interest rates on loans taken against residential properties are lower than loans taken against commercial or industrial properties
Employment history
  • For salaried applicants, minimum work experience of 3 years is required
  • For self employed, business existence of minimum 5 years and ITR of 3 years is required
    Note:Business with net investment up to Rs. 5 crore may be eligible for concessional rate of interest on LAP under priority sector lending
LTVBanks typically give mortgage loan at LTV of 40% to 85% The LTV ratio– differs by type of property

  • Loan against industrial property – 85%
  • Loan against residential property – 70%
  • Loan against commercial property – 60%

Banks give loan based on market value or registered value of the property, whichever is lower

CIBIL scoreCIBIL score of 650 and above is considered as a minimum cut off score to be eligible for a CIBIL Score
Property approval and documents
  • The builder and property against which you are taking loan should be approved by banks
  • Registered Sale Deed/ Conveyance/ Lease Deed, Past Sale Deeds Chain (each transaction in respect of this property since first allotment, Latest House Tax Return/ Receipt, Approved Building Plan from Municipal Corporation)

Tips to increase your mortgage loan eligibility

Apply for longer loan tenure:Your EMI depends upon the tenure of the loan. Higher the loan tenure, higher will be your loan amount eligibility. If your loan eligibility for a 10 year loan is Rs 15 lakh, you may evaluate the option of taking 15 year loan to increase your loan amount eligibility. You can also check your loan eligibility with MyLoanCare Property Loan Calculator.

Prepay your existing loan completely:If you have an existing loan near to closure, it might help to pay back the loan to increase your monthly savings and enhance your loan eligibility.

Add any co-applicant (Spouse or parents):If you include your spouse or parents as loan co- applicant, then your overall loan eligibility will go up as more income is available to support loan repayment. Please ensure that the applicant is earning, has a strong credit track record and can produce credit and income proofs, as required.

Add Rental Income:Some banks are also open to consider your rental income as a part of your net income to calculate your loan eligibility. Hence, it is advisable to disclose and report your rental income if you want the highest loan amount.

Maintain good credit score:Before applying for loan against property, check out your CIBIL score. Look for errors, if any. Do not apply for a loan with 10 different lenders to get a loan quickly. Pay all your credit card bills and loan EMI on time or you can also do advance payment to improve your CIBIL score and your eligibility for a loan.

Choose the property to be mortgaged wisely:Banks view residential property as the safest and hence, offer the highest LTV on such properties. If you have an option, always try to avail a loan against a residential property to get highest loan and lowest interest rate. Commercial property mortgage tend to get you lower loan amount eligibility and higher interest rate, as perceived risk is high. Only a few banks offer loan against industrial property and that too at lower LTV and higher interest rate.

Illustration –Mr. A is 30 years old and needs a loan to wants to expand his business. He is willing to mortgage his commercial property with a market value of Rs. 60 lakh. His net income is Rs. 50,000 per month and he has no other fixed obligations. Banks will calculate Mr. A’s loan amount eligibility based on his age, net income and his fixed expenses obligations as a per cent of his net income. Based on his eligibility calculation, various banks can offer different interest rates to Mr. A with different EMIs. He should choose the bank which offers the highest loan amount eligibility with lowest interest rate and lowest EMI.

BankLoan Amount EligibilityInterest RateEMI
SBIRs. 39 Lakh for 15years10.00%Rs. 41,910
HDFCRs. 40.63 Lakh for 15years9.60%Rs. 42,667
ICICI BankRs. 41.05 Lakh for 15years9.50%Rs. 42,868
Axis BankRs. 40 Lakh for 15years9.75%Rs. 42,375
PNB Housing FinanceRs. 41.05 Lakh for 15years9.50%Rs. 42,868
DBS BankRs. 41.05 Lakh for 10years9.50%Rs. 53,121
DHFLRs. 32.50 Lakh for 15years12.00%Rs. 39,005
IDBI BankRs. 39.39 Lakh for 15years9.90%Rs. 42,092
IDFC BankRs. 37.14 Lakh for 15years10.50%Rs. 41,058
IndiabullsRs. 31.43 Lakh for 15years10.50%Rs. 34,741
  • As you can see in the above table, loan amount eligibility differs for different banks. Hence, it is extremely important to compare the eligibility terms and interest rates of different banks before choosing the bank to borrow from.
  • Banks offering highest eligibility of Rs. 41.05 Lakh are ICICI Bank, PNB Housing Finance, DBS Bank.
  • Minimum eligibility of Rs. 31.43 Lakh is offered by Indiabulls.
  • EMI amount ranges from Rs. 34,741 to Rs. 0.01 Cr at different interest rates offered by banks.

Compare Loan Against Property Eligibility of All Banks

BankLoan Amount Eligibility for Max TenureAge of Eligible BorrowerMaximum Loan on Property Value
SBI Loan Against PropertyRs. 7.50 Cr for 15 Years18 to 70 yearsUpto 65%
HDFC Loan Against PropertyRs. 5 Cr for 15 Years24 to 60 yearsUpto 50%
ICICI Bank Loan Against PropertyRs. 5 Cr for 15 Years21 to 60 yearsUpto 60%
Axis BankRs. 5 Cr for 15 Years24 to 60 yearsUpto 60%
CitibankRs. 5 Cr for 15 Years23 to 60 yearsUpto 70%
IndiabullsRs. 10 Cr for 15 Years21 to 65 yearsUpto 65%
PNB Housing FinanceRs. 5 Cr for 15 Years21 to 60 yearsUpto 50%
Standard Chartered BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 70%
DBS BankRs. 3 Cr for 10 Years21 to 60 yearsUpto 65%
Syndicate BankRs. 5 Cr for 10 Years21 to 60 yearsUpto 0%
Karur Vysya BankRs. 5 Cr for 9 Years21 to 60 yearsUpto 40%
Federal BankRs. 5 Cr for 10 Years21 to 60 yearsUpto 50%
PNBRs. 5 Cr for 10 Years21 to 60 yearsUpto 50%
United Bank of IndiaRs. 5 Cr for 7 Years21 to 60 yearsUpto 60%
Punjab and Sind BankRs. 5 Cr for 12 Years21 to 60 yearsUpto 50%
IndusInd BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 0%
Dhan Laxmi BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 65%
Bank of IndiaRs. 5 Cr for 12 Years21 to 60 yearsUpto 40%
Indian Overseas BankRs. 1 Cr for 7 Years21 to 60 yearsUpto 50%
Yes BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 85%
Kotak BankRs. 3 Cr for 12 Years21 to 65 yearsUpto 55%
HSBC BankRs. 10 Cr for 15 Years21 to 58 yearsUpto 65%
Corporation BankRs. 5 Cr for 10 Years18 to 65 yearsUpto 50%
Vijaya BankRs. 5 Cr for 10 Years21 to 65 yearsUpto 70%
South Indian BankRs. 15 Cr for 12 Years21 to 60 yearsUpto 0%
Jammu And Kashmir BankRs. 1 Cr for 7 Years21 to 60 yearsUpto 60%
DHFLRs. 10 Cr for 15 Years21 to 60 yearsUpto 60%
Canara BankRs. 10 Cr for 7 Years21 to 60 yearsUpto 50%
UCO BankRs. 5 Cr for 12 Years21 to 60 yearsUpto 50%
Lakshmi Vilas BankRs. 5 Cr for 10 Years21 to 60 yearsUpto 60%
IDBI BankRs. 10 Cr for 15 Years22 to 60 yearsUpto 65%
Allahabad BankRs. 2 Cr for 9 Years21 to 70 yearsUpto 50%
RBL BankRs. 10 Cr for 15 Years23 to 60 yearsUpto 65%
Karnataka BankRs. 1 Cr for 15 Years21 to 60 yearsUpto 50%
EdelweissRs. 5 Cr for 15 Years21 to 60 yearsUpto 60%
Central Bank of IndiaRs. 10 Cr for 10 Years21 to 60 yearsUpto 50%
IDFC BankRs. 5 Cr for 15 Years21 to 60 yearsUpto 60%
Union Bank of IndiaRs. 10 Cr for 12 Years18 to 60 yearsUpto 50%
OBCRs. 10 Cr for 10 Years21 to 60 yearsUpto 60%
Indian BankRs. 2 Cr for 7 Years18 to 60 yearsUpto 50%
Dena BankRs. 5 Cr for 7 Years21 to 60 yearsUpto 50%
Andhra BankRs. 2 Cr for 10 Years21 to 65 yearsUpto 50%
DCB BankRs. 10 Cr for 15 Years21 to 60 yearsUpto 70%