Eligibility for a property loan (home loan, commercial property loan, or loan against property) depends on factors like income, employment, and creditworthiness. Below are the general requirements:
1. Basic Eligibility Criteria
Age: 21 to 65 years (some lenders allow up to 70 years)
Employment: Salaried, self-employed, or business owner
Income: Minimum ₹25,000/month (varies by lender)
Credit Score: 700+ for better approval chances
Repayment Capacity: Assessed based on income, existing loans, and liabilities
Property Ownership: Must have clear title and legal documentation
2. Eligibility Based on Employment Type
A. Salaried Individuals
Age: 21-60 years
Minimum work experience: 1-2 years
Income: Minimum ₹25,000/month (varies by city and lender)
Employer: Government, PSU, MNCs, or reputed private firms
B. Self-Employed Individuals
Age: 21-65 years
Business vintage: At least 2-3 years of profitable operation
Income proof: ITR (Income Tax Returns) for the last 2-3 years
Annual turnover: Varies by lender (typically ₹10-50 lakh minimum)
C. Non-Resident Indians (NRIs)
Age: 21-60 years
Stable employment abroad with valid work permit
Minimum 6 months to 1 year of employment in a foreign country
Income proof: Salary slips, bank statements, and NRI bank account
3. Loan-to-Value (LTV) Ratio
Home Loan: Up to 90% of property value
Commercial Property Loan: Up to 60-70% of property value
Loan Against Property (LAP): Up to 50-75% of property value
4. Documents Required
Identity Proof: Aadhaar, PAN, Passport, Voter ID
Address Proof: Utility bills, Aadhaar, Passport
Income Proof: Salary slips, ITR, bank statements
Employment Proof: Offer letter, business registration (for self-employed)
Property Documents: Sale deed, ownership proof, encumbrance certificate
5. Factors Affecting Eligibility
Existing Loans & Liabilities: High debt-to-income ratio reduces approval chances
Credit Score: A score below 650 may result in rejection or higher interest rates
Property Location: Some banks have restrictions on rural or disputed properties
Co-Applicant: Adding a co-applicant (spouse or parent) can increase eligibility