Financial institutions have the flexibility of providing loans against property for salaried and self-employed individuals or professionals. The lenders offer impeccable benefits and features for people who decide to procure loans against properties in Mumbai.
Whether you want to buy an office space to kick start your business or fund your child’s education abroad, this facility in Mumbai is quite helpful in all aspects. The only thing you should be aware of is the considerations that go along with procuring a loan against a property.
In this article, you will get a clear insight into everything associated with seeking such a facility. Read along with this guide till the end!
Basic Eligibility Criteria for Seeking Loan Against a Property in Mumbai
There’s a specific set of criteria set by financial institutions or lenders for considering you eligible for people to seek loans against properties in Mumbai. The criteria are as follows:
- Age- The self-employed applicants must be between 25 to 70 years of age, whereas the salaried individuals must be between 28 to 58 years of age to seek loan procurement facilities.
- Income- The salaried individuals should have a take-home payout of at least Rs. 50,000, whereas self-employed professionals should have at least a yearly gross income of Rs. 3 lakhs. If you run a company, your annual turnover should be Rs. 10 lakh or more.
- Experience- The salaried employees should have a total work experience of at least three years and must be working for at least six months with the present employer.
- Credit Score- An individual or professional must have a credit score of at least 750 to prove a healthy record in terms of loan repayments in the past. Anything less than that might incur a higher rate of interest or denial of the loan application.
- Citizenship- The applicant must be a resident of India and should be residing within the country at the time of applying for the loan.
- Employment- Both self-employed and salaried professionals are eligible for availing of this loan facility from financial institutions.
Note: The eligibility criteria are subject to vary depending on rules and regulations set by various financial institutions. But, more or less, this is the standard criteria for seeking loan procurement against properties in Mumbai.
Required Documents for Acquiring Loan Against Property in Mumbai
The documents that you must produce to the lenders in order to process the loan application are:
- Identity Documents- You need specific KYC documents such as Aadhar Card, PAN Card and others if you are salaried or self-employed. In the case of a company or firm, you must also produce the registration certificate and associated documents of directors, as asked.
- Address Proof- The electricity bill of owned premises or rental agreement of the rented space is asked from salaried and self-employed individuals. The passport copies will also be asked for by the financial institutions. The company owners need to produce the same, along with passport copies of all directors.
- Income Documents- Salaried individuals will have to produce 3-month salary slips. Self-employed individuals must produce the ITR of the last two years along with the balance sheet & profit/loss of the last two years. For companies, ITR of the last two years, GST returns, balance sheet and profit/loss statement are required.
- Bank Statement- Salaried individuals must produce their salary bank account statement for the last year. Self-employed individuals and company owners must give a one-year statement of their operative or business bank account.
- Property Documents- If the documents are already finalised with all of the legal or technical clearances in association with the property, then the originals or copies need to be produced.
Note: The financial institutions might ask for other documents while processing the loan application. But, the above-mentioned documents are mandatory per the usual loan procurement standards.
Things to Consider Before Choosing the Best Loan Provider Against Properties in Mumbai
Here are some of the things that you should consider before deciding on a financial institution or lender for loan procurement against properties in Mumbai:
- Compare the effective interest rates.
- Time is taken for the amount to be credited to the account upon successfully processing the loan application.
- Check whether the lender provides loans against various types of properties or not.
- Look for flexible repayment tenures.
- Check for minimal foreclosure charges.
So, these are the basic things you should keep in mind if you are seeking loan procurement against property in Mumbai. When you approach a financial institution, loan consultants will guide you through the entire process per their respective banking policies. Compare the regulations and policies of multiple lenders before you decide on one!