What Are The Documents Required for Loan Against Property?
Do you want to expand your business, or do you have an emergency that requires finances? If you have exhausted your savings, taking a loan against your property will be a great option. Such loan types come with low-interest rates and longer repayment tenure.
Also, when using your property as collateral, you get the loan quickly. Your property acts as a guarantee, and that eliminates any doubt your lender may have about repayment. Apart from that, you aren’t limited on how you spend the money given by the lender. You can use your money to meet medical expenses and any other type of personal need.
But before any lender gives you a loan, you’re expected to provide all the documents required for a loan against property. Many lenders look for your financial documents, KYC, and bank’s internal documents to process your loan. If you’re applying for a loan for the first time, check the list below to understand more.
Vital Documents Required to Get Loan against Property
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Loan Application Form
This is the bank or NBFCS documentation you need when applying for a loan against property. As an applicant, you are supposed to fill out the form and duly sign it with the self-attestation of your photographs. If you’re applying for the loan with co-applicants, they should also fill out the form and provide their photographs.
But before picking up and filling loan form, you should contact or discuss your loan against property eligibility with the lender. That way, you’ll know whether you qualify or not. And if you qualify, then what is the amount you can get against your property.
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Bank Statement Verification Form
While taking a loan from banks and NBFC, they take the signatures of the applicant and co-applicants for the bank statement verification form. That helps the lender verify the applicant’s signature and the bank statement. All that is required to authenticate loan applications.
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Income Documents Needed to Apply Loan Against Property
If you’re a salaried individual, your lender requires you to provide salary certificates or slips. The slips should be for the last three months. You will also be needed to provide the latest form-16. The income tax return form is another part of the documents required for a loan against property. Your income tax return document is supposed to be for the last two years.
In case your salary has been revised at any time within the last six months, you’re required to provide your lender with a salary increment letter. Did you change your employer within the previous year? A relieving letter from your previous employer will be needed by your lender when applying for a loan against property.
Your lender also requires loan details if you are running any other loan. You can provide a sanction letter as well as a repayment track. So, being an applicant, you’re expected to give all these documents with self-attestation to help process your loan.
Self-employed Individual’s Documents Required for Loan against Property
Even those who are not salaried are eligible for a loan against property. If you’re an applicant, you need to show your business profile. In addition, your lender requires you to show your business promoter details, which helps in determining your loan eligibility.
Apart from proof of profile, you should also provide a certificate of practice if you’re a professional. Other requirements include GST registration, proof of investment, partnership, and a shop/ business certificate. If you run another loan, you’ll be required to provide a sanction letter and repayment track.
Property Documents
After confirming your loan against property eligibility with your lender, you need to offer property documents for loan processing. Registered Sales Deed, Property Tax receipts, and Allotment Letter bearing the loan applicant’s name are among the documents you should have. You’ll also be required to produce a share certificate in your name as an applicant and a sanction plan certified by a competent authority.
Conclusion
When applying for a loan against your property, provide the above documents to avoid any delay in processing your loan. Whether you want a loan to expand personal needs, you are assured of getting funds with your property as collateral. Visit your lender, discuss your eligibility and provide the necessary documentation. I hope, all these make the overall process of getting a home loan hassle-free for you.
