How To Apply For A Loan Against Property

When compared to a personal loan a loan against property is far better and more economic. The repayment tenure is longer and the interest lesser. However, the main criterion to obtain a loan against property is that the property should be self-owned and free hold.  The loan can be taken for any reason like getting your daughter or son married, going on a foreign trip or any personal reason. This type of loan is similar to a home loan except for 3 added documents.

1. Required documents to get a loan against property

a. Resident proof – this can be in the form of any government id like driving license, passport, telephone  or electricity bill or ration card that gives proof of the place where you are residing and the length of time.

b. Identity proof – you can product a copy of your driving license, pan card, voter’s ID along with a recent photograph of the applicant.

c. Income proof is of two types – salaried and self-employed. While salaried people should submit a copy of Form 16 and the latest salary slip and a 3 month bank statement, self-employed people should provide 2 years of IT returns, profit and loss account and balance sheet and 6 months bank statement.

d. Photocopies of all documents related to the property along with a declaration that the loan amount will not be used for any illegal or speculative activities by the borrower should be handed over prior to the sanction of the loan.

e. Besides, a valuation sheet should be obtained by the bank’s professional evaluator.

2. Who is eligible for a loan?

a. You should be an Indian citizen
b. Either a self-employed or a salaried individual is eligible
c. You should be at least 25 years at the time of the loan sanction

A detailed list of documents required to obtain a loan against property for self-employed individuals:

1. Photograph and application form
2. Address and identity proof
3. Proof of birth and signature
4. Balance sheet and IT returns for 2 years along with the profit and loss account
5. Continuity of business proof for 5 years
6. Copy of the paper showing the property to be mortgaged
7. 6 months bank account statement
A detailed list of documents required to obtain a loan against property for salaried individuals:
1. Application form and photograph
2. Identity and address proof
3. Date of birth proof and signature
4. 3 months bank statement
5. Form 16 of the current financial year
6. One month’s salary slip

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