Is your property eligible for Loan Against Property? – Read more to find out

Financial setbacks are unexpected guests that can come at the wrong time and spoil our plans. During these times of financial crises, we look for loans to come out of it. One such loan that can make things easy for us is Loan Against Property. When you have a property in hand, loan against property is one of the best ways to harness the power of your property.

In Loan Against Property, you can pledge your property as collateral to avail yourself of the loan.


Ownership is the first and foremost factor the lender will look at before offering you a loan. It will be easy if the ownership belongs to a single person. If it is a property with joint ownership, each owner should be on the same page. Also, make sure your property isn’t under any active mortgage.

Property evaluation

Before deciding to mortgage your property, you will need to evaluate its market value. The property can either be residential or commercial. The lender will offer you the loan based on the current market value of the property.

Eligibility criteria

Even though eligibility criteria vary from lender to lender, most of them find common ground in some key aspects. They are the occupation and income of the borrower, active debts, repayment history, CIBIL score, etc. Most lenders will prefer borrowers who can pay off their loans while they are still generating income which is why the age limit is often capped at 75.

Following are the criteria one shall have to fulfil to avail Chola Loan Against Property.

  • Age: 21 to 75
  • Employment status: Salaried or Self-employed
  • Minimum Income (For self-employed): ₹2.50 lacs yearly business income as per ITR
  • Work experience (For salaried): ₹3.60 lacs gross income per annum
  • Business continuity (For self-employed): 3 years
  • Work experience (For salaried): 3 years

Income generated from the property

It will be an added advantage if the property you are mortgaging can generate income from itself. For example, if it is a residential property the income can be generated through rent and if it is a commercial property, the income can be generated through your business. While your property generates income, it will be easy on your wallet to repay your EMIs. Upon knowing what income can be generated through your property it will be easier for you to devise your financial plans.

CIBIL score

When you have a decent CIBIL score, you will get loans at lower interest rates. Make sure you pay your dues on time if there are any. This will improve your CIBIL score which will be beneficial when you’re applying for any loans.

Keep the documents in place

While you wish to get a loan against your residential or commercial property, the first thing the lender will wish to get their hands on is the property documents. Make sure you have all the relevant documents of your property in order thereby you will have no hiccups along the loan application journey.


Now that you know if your property is eligible or not, you should look for a reliable lender for loan against property. One such lender who will support you in your times of need is Cholamandalam Investment and Finance Company Limited. With our variety of loan options and fast approval process, Chola has set a benchmark for others to follow.