6 Factors That Can Make or Break Your Loan Against Property Application

Possession of some property like a residence, land, or commercial premises is the biggest asset of some people’s life. People work hard to achieve some property to make some investment lifetime opportunities. Some people can get an income by leasing their properties, while others choose to use their property to finance personal needs, which is popularly known as Loan Against Property.

A personal loan against property can be a great way to get the money you need quickly and efficiently, and you can use it for all sorts of purposes – to boost your business, finance a wedding, fund higher education, buy a new home or pay for unexpected medical expenses. Because such loans are secured credit – meaning that your property remains in the lender’s possession until you’ve repaid the loan in full.

Factors That May Affect Your Eligibility For An LAP

If you’re thinking about applying for a loan against property, here are some factors that may influence your loan against property eligibility :

  1. Age-

This is an important factor that affects your loan eligibility. The maximum age you can be to apply for the loan is 60 years. You cannot avail of this loan at the age of 55 since you are over retirement age, and it doesn’t go well with your application.

  1. Income-

Generally speaking, lenders don’t like giving out loans to people with dangerous jobs and unpredictable incomes. This means that if you work as a freelancer, small-scale entrepreneur, or for yourself, then your chances at a loan might be a lot less likely. Lenders often base assessments of their customers on how much money they make per month and how sure they are that the person will be able to pay back the loan in full under these terms.

  1. Job Security-

It is best to maintain a consistent work history to demonstrate your ability to repay a loan. However, if you are continually switching jobs with no guarantee of secure employment, it may be difficult to gain approval from your lender.

  1. CIBIL Score-

The CIBIL Score is the first thing that banks consider before you apply for any loan, be it against your property or not. Several factors affect your score, whether the defaults, the delay in repayment, or cheque bouncing.

  1. Property Documents-

Want to increase your chances of getting that loan? Make sure you have all your paperwork ready. Having all the right documentation on hand will most certainly help you get the biggest benefit out of it. If any legal complication arises regarding your asset, then it may reduce your eligibility for LPA.

  1. Income Tax Returns-

One way to help improve your approval chances for the loan you seek is to ensure your ITRs are all up to date. Incurring too many unpaid taxes in just one year could hinder your eligibility before the loan application stage due to how it reflects upon your general trustworthiness as a borrower.


Whether you are an individual or a business, getting a loan against property is one of the most important financial decisions you will ever make. While it may seem straightforward, several factors affect your eligibility for a loan and the amount you can borrow.

Also Read: How can you get an instant personal loan for salaried employees?

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