Things Must Check Before Availing For A Loan Against Property

A loan against property provides you a substantial amount up to Rs. 3.5 Crore and comes with a lower rate of interest than an unsecured loan. With no end usage restriction, you can utilize the available funds for a variety of purposes, viz. –

  • Expand your existing business to another location.
  • Start a new business.
  • Purchase a new property, etc.

The tenure of property loan is usually prolonged making your EMIs affordable and eases the strain on your pocket. Given below is a list of things that you should consider checking before you apply for a loan against property.

Interest Rate

There are two types of interest rates that you can choose from that is floating interest rate and fixed interest rate. Floating rates will depend on the MCLR, which depends on the repo rate published by the RBI.

Unlike the fixed rate of interest, a floating rate of interest would ensure that the interest of your loan against property will lower down if there is a drop in the MCLR.

Other factors that affect the interest rate are the type of mortgaged property, tenure and credit score.


The tenure provided for a loan against property is usually up to 20 years. Your EMI amount will depend on the tenure and will be less if you have opted for a longer tenure. However, it is advisable that you choose shorter tenure if you have a proper cash flow to put down the burden of dues from your shoulders fast.


Before you avail a loan, make sure to check your lender’s loan against property eligibility criteria. The eligibility criteria will include your CIBIL score, age, income, etc. A minimum CIBIL score of 750 and above is required for availing such loans. Debt consolidation and paying your dues on time are some tips on how you can maintain a good CIBIL score. Also, an age bracket provided for such loans ranges between 25 and 70 years.


The list of documents needed to apply for a loan against property generally includes submitting your KYC documents such as Aadhaar card, PAN card, passport, Voter ID, etc. income proofs, address proof, employment details, copy of documents of your mortgaged property, etc.

Other Applicable Charges

There are other additional charges to your loan, such as:

Processing fee – an amount charged on the application of loan.

Late payment fees – for failing to pay your dues on time your lender will charge a minimal amount to make up for the loss.

EMI bounce charge – if you have an insufficient amount in your account at the time of EMI payment, your lender will charge an amount on your dues as a bounce charge.

Make sure you check these charges before you apply for a loan. You can find all the details on these fees on your lender’s official website.

Application Process

Check your lender’s loan against property process for application before you apply for such loan. Inquire if your lender provides you with the facility for online application and take your decisions accordingly.

To apply online, you have to visit the lender’s official website. Once you click on the ‘loan against property apply online’ option you will be redirected to a page where you will have to fill out an application form by sharing some details like your name, employment details, income, contact details, etc.

Part-payment and Foreclosure Charges

While you avail a loan, make sure you enquire about the part-payment and foreclosure charges. Also, if your lender’s part-payment and foreclosure charges are minimal, consider paying your dues before the tenure ends to avoid debt accumulation.

Several financial institutions and NBFCs offer such credits at minimal part-payment and foreclosure charges. Bajaj Finserv is such an NBFC that provides Loan Against Property at a competitive interest rate against minimal documentation. They also offer online account access, balance transfer facility, flexible EMI tenure with instant approval and many more.

Bajaj Finserv also brings you pre-approved offers to make the application process fast. These pre-approved offers are available on both secured loans like home loans, unsecured credits such as business loans and personal loans, and on numerous other financial products. You can check your pre-approved offer by providing only a few details like your phone number and your name.

Apart from the above-mentioned factors you should also check for the disbursal process and time for your lender. If you want to make the most of your loan, analyze the market value of your property before you apply for a loan against property .

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