What is the eligibility for a micro loan against property?

Eligibility for a micro loan against property generally depends on various factors set by the loan provider. Below are some common criteria typically considered:

• Property Ownership: You need to be the legal owner of the property you are putting up. This could be a residential property like a house, a commercial establishment or an industrial unit. There should not be any disputes related to the ownership rights, and the title should be in your name.
• Your Age: Most financial institutes want to see that your age is between 21 and 65. A few may be more flexible on the upper limit. The idea is that your age should align with a sufficiently long working life period for a stable repayment capacity.
• Income Proof: Steady income, whether from a job or your own business, is essential. Salaried individuals need to provide salary slips and bank statements. Self-employed people need to provide financial statements, tax returns, etc., to show that their business is generating ample cash flows. Retired people with a pension or other income sources could also qualify.
• Credit History: A good credit report showing timely repayments on past loans works in your favour. Even if you have defaults but an otherwise consistent repayment history, you could still get approved but at a higher interest rate. First-time applicants with no credit history may also get a micro loan.
• Documentation: Loan providers will ask for identity proof, address proof, property papers, and income documents, as applicable. Keep these ready. The more complete your paperwork, the quicker the processing.