A Beginners Guide To Loan Against Property in 2022

A loan against property is also commonly known as a mortgage loan or a secured personal loan. For this, you receive a loan amount in exchange for giving a property that legally belongs to you as collateral to the lender. 

Want to invest in your dream business project, have a heavy bill due that needs payment or have any form of significant expense? Taking a loan against a property or mortgage loan is the most intelligent way to seek financial assistance in today’s time. 

The banking industry comes up with attractive personal loan offers from time to time. One such offer worth mentioning is the PNB housing loan against property

Highlights of Loan Against Property

Higher loan amount

A loan against property gets you a higher loan amount. Although the loan amount offered varies from bank to bank, you can avail yourself at least 60 to 75 percent of the property’s market value. On average, banks offer loans ranging from 10 lakhs to 7.5 crores. 

When it comes to PNB housing loans against property, the bank has the feature to increase your loan amount if required. 

Low-interest rates

Since you already provide an asset that is taken as collateral until you repay the loan amount, it is less risky for the lender. So, you get to enjoy stunning interest rates that range between 8 to 10 percent with a loan against a property scheme. It is indeed a tempting offer. 

Eligibility criteria are simple

Any self-employed professional or non-professional and salaried employees of at least 18 years can enjoy the benefits of low loans against property rates. Point to be noted- at the time of loan’s maturity, salaried employees customers should be less than 60 years, and self-employed customers should be less than 65 years. 

Long loan repayment tenure

Loan against property schemes has different repayment packages for a hassle-free customer experience. You can repay in the form of EMI for a maximum of 2 decades. 

What do you need to submit?

  • A filled application form with a recent photograph
  • Age proof certificate: PAN Card, Passport, Any other Certificate from Statutory Authority
  • Proof of residence: Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority
  • Education qualification: latest degree certificate
  • Salary slip of last 3 months (salaried employees); business proof certificate(self-employed)
  • Form 16 for the previous two years in the case of salaried employees. And in the case of self-employed, tax returns of self and the business along with profit and loss account, balance sheets checked by CA is required. 
  • Salaried employees have to submit bank statements for the last 6 months. And self-employed individuals have to share bank statements for the previous 12 months. 
  • Give a processing fee cheque in favor of ‘PNB Housing Finance Ltd.’
  • Provide a photocopy of the title document of the property and approved plan.


As you can see, mortgage loans have unique perks that benefit both the lender and the borrower. Flexible loan amount, low loan against property rates – what more does a borrower wishes to have in this day and age.  

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Home loan eligibility criteria and how to increase it