It could be a planned spending or an unplanned expenditure; you could be gearing up for a wedding in the family or planning to send your child abroad for higher studies, a loan against property comes in handy in tackling such financial situations and more. However, most people find it difficult to apply for loan against property when it comes to borrowing. To assist you in this circumstance, we will explain how to apply for this loan and what eligibility requirements you must meet.
Loan Against Property Application Process
- The first step to apply for loan against property is to fill out the online loan application form from your preferred lender website. You may also go to a branch of your preferred financial institution and fill out a loan application in person. The lender will ask you to fill out an application form with your basic loan requirements along with your personal, income, and occupation details.
- The financial institution will determine your loan eligibility based on the information provided by you. The lender will determine your loan interest rate, processing fees, lock-in duration and a few more. They may also ask you to add a co-applicant if required.
- The next step involves the submission of documents. If you have applied for loan against property online, you can submit the scanned documents online only. However, in the offline process, the financial institution will ask you to submit a photocopy of your documents, including your KYC, income documents, and property paperwork. The lender may also send its representative to your address to collect the documents. The lender may additionally collect processing fees as well as other legal and technical charges at the same time.
Loan Against Property Eligibility Criteria
Make sure you have done the essential research for your loan against the property eligibility check before submitting your application to the lender. Some of the common eligibility criteria before you apply for loan against property are:
For Salaried
- You should be an Indian resident within the age group of 18-60 years. However, this differs from one financial institution to another.
- You should be employed in a private limited company, MNC, partnership firm, Government organisation, or PSUs.
- Your monthly income should be at least Rs 40,000
For Self-employed
- You should age at least 21 years at the time of loan application and a maximum of 65 years before the loan matures. However, this may differ from one financial institution to another.
- Your business should be operational for a minimum of 3 years.
- Your business should have made a profit for the last two consecutive years.
Documents Required For Loan Against Property
Here is a list of documents required for a loan against property:
- Duly filled loan application form
- KYC documents such as PAN Card, Address Proof, Identity Proof, Ownership Proof
For Salaried Individuals
- Salary slips for the last three months.
- Form 16 or employment proof in case your present employer differs from your Form 16 details.
- Account statement for the last six months.
For Self-Employed
- Business continuity proof- Registration certificate of shop or establishment, tax registration proof such as Service tax registration, GST registration, VAT.
- Proof of constitution of a firm – MOA/AOA/Partnership Deed/GST Registration Certificate/ Partnership Deed/ Form 32 to know the latest directors
- Last 3 years audited financials.
- Audited Tax report for the last 3 years – Form 3CB + 3CD for partnership and proprietorship, and Form 3CA + 3CD for companies.
- GST/ VAT/ Service Tax returns for the current financial year.
- Details of all unsecured and secured loans.
- List of all directors and their shareholding pattern.
- Existing loans sanction letter with corresponding statements showing last year EMIs.
- Last 1-year business account statements.
To Conclude
You can easily obtain this loan to assist your financial needs if you are familiar with the process of how to apply for a loan against property as well as the essential documents and qualifying conditions for this loan.