Know about the documents required for loan against properties.

You can get a loan against properties by mortgaging assets like owned residential or commercial properties. The assets that you can keep as collateral include a house, apartment, shop, store, hotel, restaurant, pharmacy, office, etc. Borrow a sufficient amount of loan against these types of properties to cover your financial requirements. This loan would help during your financial difficulties, so that you do not have to postpone any specific plan due to lack of funds. Besides fulfilling your eligibility to get the loan approved, you have to submit certain documents as proof. Read on to know about the documents that the lenders usually ask for.

The loan issuance process consists of submission of certain documents by the applicant in hard copy or soft copy. The number of documents would vary as different lenders have different requirements but some standard requirements include the following:

  • KYC documents can be one or more of the documents:
  • PAN Card
  • An active passport. Check that its validity has not expired.
  • A valid driving license.
  • Voters id card
  • Job card issued by NREGA. It should have the signature of a designated government official.
  • Letter issued by the National Population Register containing your name, address, etc.
  • Aadhaar card
  • Income proof may consist of:
  • Last 3 month’s salary slips if you are a working professional
  • Last 6 month’s bank statements
  • The latest Form-16 and IT returns
  • Documents related to your mortgage or collateral
  • Title deed and other related property documents
  • Proof of no loan/mortgage on the property that you would offer as collateral
  • Approved plan in case of an under-construction property
  • Property valuation report

If you are taking the loan for purchasing a house, your lender may ask you to get a life insurance cover in addition, particularly if you are taking a home loan. The premiums are affordable and the policy covers you during the entire loan duration. They may offer a property insurance cover to protect against accidents or damages. You can get funding for the insurance premiums also. You have to submit the insurance documents also while applying for the loan.

  • Other documents
  • Employment Contract or appointment letter if you are a less than one year old employee in an organisation
  • Last 6 months’ bank statements to show repayment status of any ongoing loan
  • Passport size signed photograph of the applicants and co-applicants
  • Declaration and documents stating the end use of the loan
  • Proof of any down payment or own contribution

Disclose the correct information and submit proper documents while applying as the lender would cross-check all the details. You may go for the online facilities as it would require uploading soft copies only and you can track your loan account as per your convenience.

Loan application process post submission of documents:

The lender may conduct a field visit to check the condition of the property that you have placed as security or collateral. He will also determine the cost of the property and verify all the information that you have provided. After all these processes are complete, the lender would process your loan. There would be certain fees and charges that you have to pay during loan application. These consist of the processing fee, legal fee, stamp duty. Other charges include pre-payment charges in case of partial or full prepayment and foreclosure charges. You can pay for the charges through cheques or through online payment mode.

If you fulfil the eligibility and documentation requirements, the lender would approve the loan. The loan against property interest rates would vary for residential and commercial properties and you may find the interest rate for commercial properties to be be higher.

You have to submit a minimum number of documents if you apply for a loan against properties. These include your ID, income proof, loan application, etc. The lender would disburse the loan to you within few days after you apply if you fulfil the criteria. The banks or finance institutions would not burden you with the submission of a range of documents that would be difficult for you to arrange within a short time.

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