Top Factors Affecting Your Eligibility For Getting a Loan Against Property

Going through a financial crisis could give you sleepless nights, whether it is a health emergency, planning a dream wedding for your child, or enrolling your child in a foreign university.

A reasonable way to acquire substantial funds to ease your worries during such financially difficult times is by opting for a mortgage loan. A secured form of credit, a loan against your property, is offered at an affordable interest rate and flexible repayment terms. One can readily obtain such loans upon fulfilling the required eligibility conditions based on their income, age, and credit score.

Scroll down to know more about the significant factors which impact your loan against property eligibility.

Top Factors Affecting Your Eligibility For Getting a Loan Against Property


The candidate’s age plays a crucial role in determining whether they are eligible to obtain a loan against property or not. If the borrower is about to reach the retirement age in a few years, the lender might be a little reluctant to provide a loan against the property as they will be unable to pay the EMIs for a long time. But, the banks suggest opting for a shorter tenure or having a co-applicant on the application in such cases.

Employment stability

Another significant attribute assessed by the banks while sanctioning the LAP is job stability which validates that the borrower possesses a steady source of income and would be able to repay the loan without any default. As a result, if the candidate has a habit of frequently changing jobs, the financial institution might reject their loan application.

Credit score

A key parameter for acquiring LAP is a good credit score of 700 or more, demonstrating the disciplined behavior of an individual in handling their previous debts and reflecting an excellent repayment capacity. Additionally, it also helps acquire an affordable interest rate, i.e. the higher the CIBIL score, the lower the lap loan interest rate charged by the lender.

Monthly income

Irrespective of the candidate’s profession (salaried or self-employed), monthly income is crucial in determining your chances of securing a LAP. For instance, earning a minimum monthly salary that is sufficient to pay the EMIs without impacting your fixed household expenses is a critical factor evaluated by the lenders while providing LAP.

Lack of ITRs

The lender might also ask you to submit the income tax returns (ITRs) of the past three years, even if you have a steady source of income. Insufficient ITRs can also cause your loan application to be rejected; hence one must file their yearly IT returns without default.

Property documents

As the loan is provided upon pledging the property as collateral, the lender examines the property documents with utmost precision. Hence, the borrower must keep all the relevant papers ready such as title deeds, permissions from concerned authorities, registrations, building plans, clearances, etc. Keeping the property insured also increases the chances of loan approval. If the documents are identified as fake or invalid, there would be legal consequences and the rejection of the loan request.

Loan rejection history

The lender also checks the previous loan records of the borrower while going through the verification formalities. If the financial institution comes across any history of loan rejection during the credit profile check, it decreases the chance of loan approval. Hence, one should not apply for a loan unnecessarily as it affects their future requests.