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What Is A Loan Against Property Eligibility & Documents?
Posted on Monday, April 10th, 2023 | By IndusInd Bank
There are certain eligibility criteria and documents needed for a loan against property. At IndusInd Bank, both individuals and business entities have to meet simple eligibility criteria and submit minimal documents.
A loan against property (LAP) refers to a type of loan that is granted by a bank when a residential or commercial property is pledged as a security or collateral. While the funds from both a personal loan and LAP can be used freely for one’s personal or business needs, the latter is a secured loan that is typically offered at a relatively lower rate of interest than other types of loans.
Why you Should Opt for IndusInd Bank Loan against Property
IndusInd Bank loan against property is a great option for those in immediate need of long-term funds. IndusInd Bank offers some of the best loan against property solutions to effectively help you unlock the hidden value of your residential or commercial property.
Some of the key features and benefits of obtaining an IndusInd Bank loan against property are as follows:
Ø Attractive loan against property interest rates
Ø Doorstep banking services and assistance
Ø Customized repayment tenures ranging from 1 to 20 years
Ø Immediate access to a large loan amount for various needs like educational purpose, business purpose , medical expenses etc.
Ø Hassle-free, seamless processing & quick disbursal of funds
Ø Availability of balance transfer option
Ø Option of availing overdraft facility
Eligibility Criteria for Loan Against Property
Like every other form of loan, an LAP requires certain eligibility criteria. At IndusInd Bank, the loan against property eligibility criteria is fairly simple. The following categories of borrowers are eligible:
ü Individuals and Proprietorship concerns
ü Partnership firms
ü Limited Liability Partnership
ü Private Limited Companies
ü Closely held Public Limited Companies (not listed on any stock exchange)
Both salaried and self-employed professionals are eligible for LAP. The table below details the criteria for each category.
| Salaried Individuals | Self Employed Professionals & Individuals |
| A person employed permanently in any Public Sector Enterprise, listed Public Limited company, Government undertaking, Multinational Company, or any well-known private limited company | Applicants could be doctors, Chartered Accountants, Cost Accountants, Architects, Engineers, Company Secretaries, and Chartered Financial Analyst |
| Minimum age of applicant at the time of loan application should be 21 years and maximum age at loan maturity should be 65 years or retirement age | Applicants should be filing Income Tax returns |
| Minimum age at the time of loan application should be 21 years and maximum age when the loan matures should not exceed 70 years |
Documentation for Loan Against Property
You are required to furnish certain documents when applying for an LAP. Details of these loan against property documents for both individuals and business entities have been elucidated in the table below:
| Type of Document | Individual Applicants | Non-Individual/Business Entity Applicants |
| Application Form | Application form with photograph | Application form with photograph |
| KYC Documents | KYC documents including a valid identity/residence or signature proof | Valid proof of identity/residence/signature |
| Proof of Income | Latest Form 16/ITR copy/Appointment letter and last 3 months’ salary slips / salary certificate | Latest 2 years’ ITR along with computation and acknowledgement. 2 years’ financials with full schedules & audit report (Form 3CD & 3CB). Financials to be audited for T/O > 40 /60 Lakhs case, or should be CA-certified |
| Bank Statements | Previous 6 months’ bank statements of the main Current Account/Savings Account/ Overdraft and Cash Credit accounts | Last 6 months’ bank statements of the main Current Account/Savings Account/ Overdraft and Cash Credit accounts |
| Property Documents | Copy of complete documents of the property that will be pledged as collateral | Copy of complete documents of the property that will be mortgaged |
| Processing Fee | Processing fee cheque | Processing fee cheque |
To apply for a loan against property at IndusInd Bank, you may fill up the online application form, call the phone banking number, or visit your nearest IndusInd Bank branch. Existing customers may simply reach out to their relationship manager for all details regarding LAP.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
