Loan Against Residential Property: Secure Funds with Your Home

Loan Against Residential Property: A Smart Financing Solution

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Loan Against Residential Property: A Smart Financing Solution

3 min 10 Mar 2025

Highlights:

What is a Loan Against Residential Property?
Why Should You Consider a Loan Against Residential Property?
Eligibility Criteria for a Loan Against Residential Property
Documents Required to Apply for a Loan Against Property

Whether you need funds for business expansion or home renovation, a loan against residential property can offer sizeable funds at a competitive interest rate and a flexible repayment tenure.

In this article, we will explore what a loan against residential property means, mortgage loan criteria, and the documents required to apply.

What is a Loan Against Residential Property?

A loan against residential property allows you to mortgage your home as a collateral. Unlike an unsecured loan, a mortgage-backed loan typically offers a competitive interest rate, higher loan amount, and longer repayment tenure, making it an attractive financing solution. The loan amount that you can avail of depends on factors such as property value, income, and credit score.

Why Should You Consider a Loan Against Residential Property?

Opting for a loan against residential property can be beneficial due to the following:

Lower Interest Rates: As a secured loan, a loan against residential property typically comes with a lower interest rate compared to unsecured loans. This makes repayments more manageable.
Flexible Repayment Tenure: You can benefit from a long repayment tenure, ensuring comfortable monthly instalments.
Diverse End Use: Funds availed of through a Loan Against Property can be utilised for various purposes, including business expansion, home renovation, and debt consolidation.

Eligibility Criteria for a Loan Against Residential Property

To apply for a loan against residential property, you need to meet our eligibility criteria given below:

For Salaried Individuals:

Should be an Indian resident between 23  and 60 years**
Must be employed with a public, private, or multinational company with 3 years of work experience
A CIBIL score of 750 or above is preferred.

For Self-Employed Individuals:

Should be an Indian resident aged between 23  and 70 years**
Must have a stable source of income with at least 3 years of business continuity.
A CIBIL score of 750 or above is recommended.

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Documents Required to Apply for a Loan Against Property

Keep the following documents handy when applying for a loan against residential property:

Identity Proof: PAN Card, Aadhaar Card, or Voter ID
Mandatory Documents: PAN Card or Form 60
Address Proof: Utility bills, Aadhaar Card, or Passport
Income Proof: Salary slips for salaried individuals and Profit & Loss statements for self-employed applicants
Property Documents: Ownership papers and property title deeds
Bank Statements: Last 6 months’ bank statements

Note: Additional documents may be required at the time of loan processing.

A loan against residential property can help you avail of substantial funds with a long repayment tenure. Understanding the eligibility criteria, documentation requirements, and loan terms can help you make an informed decision.

FAQs

The loan amount that you can qualify for is determined based on the property's market value and other factors such as your age, income, and credit score.

The time taken to secure approval on a Loan Against Property varies among lenders. Bajaj Housing Finance offer quick approval and disbursal within 72 hours* after document verification.

Yes, funds avail of through a Loan Against Property can be utilised to meet business-related expenses.

A low credit score may affect loan approval and terms. It is advisable to improve your credit score before applying to secure the most competitive terms.

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