Loan Against Property in Bangalore: Overview

Bengaluru (also called Bangalore) is the capital of India's southern Karnataka state and the centre of India's high technology industry. It's also known for its parks and nightlife and is a booming centre for biotechnology, manufacturing, aviation, and space technology. It’s an area where many Indians desire to own properties. A major way that people fulfil this dream is through a loan against property in Bangalore. 

A loan against property is a secured loan that financial institutions provide against fully constructed, freehold residential and commercial properties. It's also called a mortgage loan. A mortgage loan can be used for personal and business needs, other than for speculative purposes, such as marriage, medical expenses, and child's education, etc.

Loan Against Property in Bangalore: Features and Benefits

A mortgage loan allows loan providers to offer loans against property at a competitive interest rate. It's a long-term commitment with a tenor of up to 20 years. There are several benefits that a mortgage loan in Bangalore offers.

  • Simple Eligibility

    As a salaried resident, you must be 21 years and 60 years of age and as a self-employed resident, you must be 50 years and 70 years of age, to avail of a loan against property in Bangalore. The eligibility for a loan against property is simple: you must own residential or commercial property. Other factors, such as income, fixed expenses, current credit history, nature and value of the property being approved, etc., are also important in determining eligibility.

  • End Use Flexibility

    A loan against property in Bangalore gives you the freedom to spend the loan amount for any purpose you wish. You can use it to expand your business (buy new machinery, etc.), consolidate high-cost debts, fund a child’s education domestically or overseas, or even buy another property. Because of the larger loan size and the longer tenor, a loan against property in Bangalore is ideal for a substantial medium to long-term expense.

  • Minimal Documentation

    You don’t need much documentation to access mortgage loans in Bangalore. You only need to have a legal means of repayment and then, the loan is approved within 72 hours.

  • Flexi Loan Facility

    Borrow as many times as you need from a pre-sanctioned credit limit with a single application. What’s more, you pay interest only on the amount utilized. You can also opt to pay back with interest-only EMIs for the first four years.

  • Low Interest Rate

    Generally, interest rates on loan against property can range from 7-10% while interest rates on personal loans can range from 15-22%. Of course, each lender will fix the exact interest rate on your loan considering your credit profile, prevailing market rates, and other internal policy regulations.


Documents Required for Loan Against Property in Bangalore

To get a mortgage loan in Bangalore, you need to have the following:

For Self-employed Residents:

  • Application form with photograph
  • Aadhaar card, voter’s ID Card, pan card, or any other proof of residence
  • Proof of education
  • Business license and business profile
  • Income tax return for last 3 years
  • Income statement and balance sheet for last 3 years
  • Bank statements for the last 3 months

For Salaried Individuals:

  • Application form with photograph
  • Aadhaar card, voter’s ID card, pan card, or any other proof of residence 
  • Latest payslips
  • Form 16
  • Last 6 months’ bank statement
  • Processing fee demand draft

Loan Against Property Eligibility in Bangalore

Your loan eligibility depends on your repayment capacity. This is usually determined by the financial institution you want to borrow from. They look at things, such as your age, income, qualifications, the number of dependents, assets, liabilities, spouse’s income, property value, savings history, stability, profession, or business before deciding whether or not you’re eligible.

To access initial eligibility for mortgage loans in Bangalore, the below documents are required:

  • Property documents
  • Bank statement showing income for the past 12 months
  • Last three years audited financials