Specific conditions

Specific conditions

There are specific conditions that have to be fulfilled by the borrower before the loan against property is actually sanctioned. The conditions for loan are different when it comes to individuals and business enterprises. Hence, there has to be adequate care to fulfill these conditions for loan in order to be able to get the loan against property .

For individuals

* The age of the individual has to be below 60 years.
* Minimum monthly net salary or net annual income should be above a specified limit, usually, Rs. 10,000 and Rs. 1.2 lakh, respectively.
* Net annual income has to be double that of the total of the equated monthly instalments for the year.

For business enterprises

* Should have developed a strong track record of operations and performance.
* 3 years of cash profits.
* Net profits in the immediately preceding financial year.
* Minimum net annual income/profit of specific amounts , usually Rs 1.2 lakh.
* Net income/profit to be 1.5 times the value of the total equated monthly instalments to be paid in the year.