Eligibility and criteria for loan against property in Ghaziabad

08 Feb

Eligibility and Criteria for Loan against Property in Ghaziabad

Are you setting up for your children’s big fat Indian style wedding ceremony? Want to send them to overseas for better tutoring? May be a long vacation to a dream destination with your family is the next thing in your TO DO List? Or you might be thinking of how you should get bigger, your small business to make it an enormous achievement. Is the worry of arranging such a huge quantity to make your dreams come true worrying you? If yes, then Loan against property (LAP) is the answer for all of your doubts.

It is a secured loan type which usually has a longer tenure and smaller interest rate than a personal loan. Anyone who owns a property (self-occupied or commercial), can apply for it. LAP applicant is given a certain particular percentage of the market value of property.

Generally there are a variety of parameters set by banks to apply for loan related products. However, there are certain eligibility criteria that are common for every customer who is applying for all LAP products. Below, we have enlisted some of these common criteria for your reference.

Eligibility Criteria for Loan against Property

The most important criterion necessary while applying for Loan against property is that the property should be a freehold and it has to be self-owned by the applicant.

Another very important common parameters are:

Who can apply for LAP?

To successfully apply for Loan against property or Overdraft loan, you need to be at most one of the following:

Salaried or Self Employed Entities
Salaried Corporate Employees or Salaried Government Employees
Salaried Consultants
Proprietors
Professionals (Doctor / MBA/ CA or other)
Private Limited Companies/ Directors/ Partnership Companies/ Partners (Minimum 51 % Shareholder or partner should be loan applicants)
HUF(Hindu Undivided Family)

Who have miserable chances of getting LAP?

Some applicants with even high collateral value are deprived of loan on various bases. Here’s counting who all are not entitled for securing a loan against property.
Salaried Individuals receiving salary in Cash or Kind only. Or other salaried individuals not receiving 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

Documents Required to Apply for LAP

Below is the list of documents that are generally 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, ration card, telephone/electricity/water bills.
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
Income proof: (Salaried) Bank account statement or salary slip for the last 3 months, and 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.
Bank Account Statements of last six months (may vary as per different bank’s requirements.)
Copy of property documents / papers to be mortgaged along with respective Sanction Map / Municipal taxes.

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