123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Consider Carefully Before Taking A Loan Against Property

Profile Picture
By Author: Fayeem
Total Articles: 86
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

You can take a Loan Against Property in Delhi not only for home renovation or commercial properties but also against a plot of land. In fact, it is considered as the safest proposition for the banks as they have collateral of the property in support of the finance they provide.

And, a salaried person can avail it for various purposes such as educational needs of his/her children, medical expenses, home renovation and many more, through mortgage loans. At the same time, the business enterprises opt the Loan against property as collateral for Business Loan in Delhi and for procuring working capital requirements. In fact, in present time, a loan against property can be easily obtained due to its secure nature. Banks usually maintain a margin, ranging from 50-90% of the property value also known as Loan-to-Value, while sanctioning a Loan against Property. Further, this facility is becoming popular because the borrower can utilise the property despite mortgaging it in favour of the bank.

Eligibility for a loan against property

Current income - For a regular employee, ...
... the salary slips of the last three months and bank account statements of the previous six months are required. And, in the case of self-employed professionals, financial statements such as Balance sheet and Income statements are needed. You must complete these financial statements with the bank statements enabling the banks to co-relate them.

Continuity of Employment - A letter from your employer which proposed that the borrower is employed with them in addition with the income tax form (Form 16), and IT returns of the past two years should serve. A self-employed person has to submit proof of doing business such as GST registration certificate, partnership deeds, and certificate of incorporation.

Current Obligations - One should have a net income of 50% after accounting for all the EMIs, including the proposed one for the Loan against Property. And therefore, a borrower needs to disclose his/her current obligations.

Credit History - The lending banks are members of CIBIL (Credit Information Bureau India Limited), who can pull out the records to determine your credit score. Normally, a credit score in the range of 600 and over is acceptable.

Value of the Property – the eligibility of purchasing a Loan Against Property highly depends upon the value of your property. An LTV ratio is in around 40-70% of the location of your property is acceptable for most mortgage loan scenarios.

Legal Scrutiny Report - To carry out the search of the property, banks have panel advocates in the respective Sub-Registrar office to ascertain the chain of ownership. Further, it enables them to determine if there are any impediments on the property. This search is critical as it allows the banks to understand whether you have the eligibility to create the evenhanded mortgage in favour of the bank.
Age of the Borrower - At the time of application, the minimum age of the borrower should be 21 years.

Total Views: 343Word Count: 483See All articles From Author

Add Comment

Investing / Finance Articles

1. Breadalbane Finance Highlights Key Differences And Opportunities In Asset Finance Across Scotland
Author: Asset Finance

2. Authoritative Tips For Making Smarter Property Investment Decisions
Author: Rick Lopez

3. Why Do Small Businesses In San Francisco Need A Tax Advisor?
Author: GavTax Advisory Services

4. How To Start A Successful Career In Banking After Graduation
Author: sandeep

5. The Crucial Function Of An Investment Advisor For Making A Desired Real Estate Plan!
Author: Rick Lopez

6. Smart Money Moves In 2025: Top Financial Strategies Every Indian Should Follow
Author: Financenu

7. Stock Market Advisory: Choosing The Top Advisory Company In India For Smart Investments
Author: Vinay

8. How A Certificate Course In Retail Can Open Doors To New Job Opportunities
Author: sandeep

9. Top 5 Best Crypto Apps For Ios To Manage Your Crypto With Ease
Author: CryptoReach

10. Best Home Loan In Noida 2025 | Affordable Interest Rates & Easy Emi
Author: dhresh jindal

11. Smarten Power Systems Ipo: Complete Overview, Dates & Gmp Guide
Author: finowings

12. Banking And Finance Training In India: Scope, Opportunities, And Future Trends
Author: sandeep

13. How To Protect Your Crypto Wallet: Essential Tips Beyond Passwords
Author: Eldon Ryder

14. Ipo Grey Market Premium (gmp) Guide | Live & Upcoming Ipo Gmp Trends
Author: finowings

15. Top Benefits Of Enrolling In A Certificate Course In Banking
Author: sandeep

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: