Published on Jul 12, 2022Updated on Oct 6, 2026
Loan against your own property is a wonderful way of raising lump sum cash. You are free to use it for a family event, business expansion, etc. Utilizing the value of your property can meet most financial requirements. It is an excellent option. Lenders provide you the loan by mortgaging your residential or commercial property, providing you meet their required eligibility criteria.
Property loan rules can vary from person to person. It depends on each person’s profile. You need to assess your situation and financial goals.
Here are a few rules for loan against property you need to follow before you avail of such a loan.
You can begin by consolidating your total debt and total income. You may also want to factor in other obligations you may have such as insurance payments, rent, children’s school fees, etc. Once you arrive at a difference between the two, you will be able to understand your disposable income - that is, the amount you can afford to pay as EMI. Thus, the resulting EMI for the loan amount you need should be within your disposable income before you apply for a loan against property.
SMFG India Credit offers a LAP EMI calculator offering efficiency in understanding your EMI potential. It is an extremely easy-to-use tool. All you need to do is to enter your preferred, tenure, interest rate, and loan amount and you will get your monthly financial outflow.
You need to fix your repayment tenure judiciously. You may be tempted to choose longer repayment tenure and reduce the EMIs. However, you need to be aware that you will be paying higher interest, thereby making your loan against property costlier. Hence, keeping in mind your EMI capacity, you could minimize your loan tenure.
If you delay an EMI payment, you may be levied a penalty. This builds into your cost. Also, you need to keep in mind that delayed payments will affect your overall credit score. It is advisable to stick to timely payments and maintain your health score too.
Whenever you take a property loan, it is highly advisable to protect the risk with equal insurance coverage. This way you are protecting your family, in case there is an unfortunate event. SMFG India Credit is proud to be partnered with a few of India’s most prominent insurance providers and provides LAP customers with excellent choices so that they can secure their loan in case of any unfortunate events such as the demise of the primary borrower.
Time is an important factor in any loan related transaction. You should look at a lender who can provide you speedy service at your fingertips, rather than waste time at a branch standing in queues. SMFG India Credit offers an online application facility, which is one of the most convenient ways of applying for a loan against property. Just click on the “Apply Now” button on this page and select “Loan Against Property''. You can then enter the required details and submit. Representatives of SMFG India Credit will thereafter get in touch with you and take the process forward.
You must choose your lender after checking all the important parameters. Applying with multiple lenders at once can hamper your credit score and could also lead to loan rejections. So it is best to shortlist a lender based on their authenticity, offerings and eligibility criteria. SMFG India Credit is a reputed lender and is registered with the RBI. We offer transparency, smooth operation, and speedy processing. SMFG India Credit’s property loan brings to you flexibility in tenure (1 to 15 years) and competitive interest rates.
Must Read: How is a Loan Against Property Processed?
SMFG India Credit’s basic document list for a loan against property is as follows:
A) For Salaried Individuals:
B) For Self-Employed Individuals:
C) Property related documents will also be requested
Depending on your profile and our SMFG India Credit policy, additional documents may also be requested.
You are eligible for SMFG India Credit loan against property as a salaried resident and as a self-employed resident. Below are the criteria:
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Salaried |
Self-employed |
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MNCs/Listed Public Ltd. Cos/Govt. |
Self Employed Individual businessmen/ Sole Proprietorship |
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Organizations Private Ltd Cos / Closely held or unlisted companies / partnerships /proprietorship firms |
Self Employed Professional - Doctors /Architect's / CAs |
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- |
Partnership Firms |
|
- |
Private Limited Companies/ Closely held/ Unlisted Companies |
Additionally:
*Terms and conditions applicable. Loans are sanctioned at the discretion of SMFG India Credit.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
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Insurance disclaimer SMICC is registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a Corporate Agent. IRDAI Registration No.: [CA0098] CIN No. U65191TN1994PLC079235. The insurance policy is a contract between the customer and the insurance company, and policy is underwritten by insurance companies. SMICC acts only as the distributor and is not responsible for any risk, policy issuance, claim settlement/repudiation etc. Insurance is the subject matter of solicitation. Purchase of insurance is voluntary and subject to insurer underwriting and policy terms and conditions. Customers are advised to read the policy terms and conditions, benefits, exclusions, claim settlement carefully before purchase. Kindly note that “Insurance Products” are not mandatory for the purpose of the application and disbursement of loan. It shall be the sole discretion of the customer, by providing explicit consent, to avail such insurance along with the Loan.
Beware of Spurious calls/ Fraud phone calls IRDAI is not involved in activities like selling Insurance policies, announcing bonus or investment of premium. Public receiving such phone calls are requested to lodge a police complaint.
