Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

6 Rules to Follow While Applying for a Loan Against Property

Published on Jul 12, 2022Updated on Aug 16, 2023

6 Rules to Follow While Applying for a Loan Against Property

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.

Applying for a Loan Against Property - Some Rules To Follow

Here are a few rules for loan against property you need to follow before you avail of such a loan.

1. Assessing your Financial Status

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.

2. Loan Repayment Tenure

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.

3. Avoid Delay in EMI Payments

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.

4. Insurance to Protect Risk

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.

5. Convenience

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. 

6. Lender Selection

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?

Required Loan Against Property Documents:

SMFG India Credit’s basic document list for a loan against property is as follows: 

A) For Salaried Individuals:

  1. Proof of identity: PAN and any valid ID proof
  2. Proof of income: last 3 months’ salary slips and 2 years’ form 16 
  3. Bank account statements: 6 months’ bank statement
  4. Proof of residence: Aadhaar Card, latest electricity bill/Piped gas monthly bill, ration card, property tax/water bill, etc.

B) For Self-Employed Individuals:

  1. PAN, ID, Address proofs and Bank Account Statements - same as above
  2. Income proof: Last 2 years’ ITR with computation, CA audited financial wherever applicable

C) Property related documents will also be requested

Depending on your profile and our SMFG India Credit policy, additional documents may also be requested.

Loan Against Property Eligibility:

You are eligible for SMFG India Credit loan against property as a salaried resident and as a self-employed resident. Below are the criteria:



MNCs/Listed Public Ltd. Cos/Govt.

 Self Employed Individual businessmen/ Sole Proprietorship

Organizations Private Ltd Cos / Closely held or unlisted companies / partnerships /proprietorship firms

Self Employed Professional - Doctors /Architect's / CAs


Partnership Firms


Private Limited Companies/ Closely held/ Unlisted Companies


  • Applicant must have a minimum credit score of 700
  • Cash salary applicants will not be accepted
  • Applicants must meet the criteria in terms of minimum income
  • Applicants must be between 21 - 65 years* of age. 

*Terms and conditions applicable. Loans are sanctioned at the discretion of SMFG India Credit. 

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.