A loan against property allows you to secure a sizeable loan against a residential or commercial property. You can use this loan amount to meet any financial goals, such as expanding your business, financing your wedding, and travelling abroad.
If you plan to apply for a loan against property, it is essential to have a clear idea about the same to prevent any confusion later. This article highlights the application process and other crucial aspects of a loan against property in the following sections that you must know before applying.
Steps to Apply for a Loan Against Property
Applying for a loan against property is simple. All you need is to follow the step-wise guide to apply for a LAP:
Step 1: Compare the offerings from multiple loan providers and choose the most covenient one.
Step 2: Now, fill up the online application form of LAP with the relevant information such as your name, residential address, contact details and date of birth.
Step 3: Submit all your income details. The lending institution will show you the best deals on LAP based on your income status. After entering all the information, submit the LAP application form.
After you successfully apply for a loan against property, a representative will contact you to proceed to the next step. The representative will collect all necessary documents including the property papers for verification of the property to be mortgaged. Post verification and evaluation, the loan is sanctioned subject to meeting all eligibility norms.
Documents Required to Apply for a Loan Against Property
Whether you are a salaried employee or a self-employed, you can apply for this loan against property. However, you must submit the following documents mentioned below under each category while applying for this credit instrument:
In Case You Are a Salaried Employee
- Identity Proof – Submit Voter ID, passport, Aadhaar card, PAN card or other credentials issued by the Indian Government.
- Residential Proof – Aadhaar card, voter ID card, utility bill, passport or ration card or other similar documents issued by the Indian Government.
- Income Proof – Current salary slip, bank account statement for the last 3 months, current IT return.
Apart from it, documents of the property that you mortgaged to get the loan against property.
In Case You Are a Self-Employed Applicant
- Identity Proof – Voter ID, Aadhaar card, passport or other identity card issued by the Indian Government
- Residential Proof – Voter ID, utility bill, Aadhaar card, passport or other credentials issued by the Indian Government that serves as residential proof.
- Income Proof – IT return, bank account statement for the last 6 months.
Borrowers also need to submit documents of the property to be mortgaged with the financial institution.
For a hassle-free borrowing experience, use a loan against property EMI calculator to determine the EMI amount beforehand. Doing so willl let you compute the instalment amount that you can conveninetly repay. This will reduce the chances of defaulting on repayment of the availed loan against property.
All you need to do is enter the following information on the online EMI calculator to get the accurate information within a few seconds:
- The loan amount
- Interest rate
- A suitable loan tenure
This easy-to-use loan against property EMI calculator eliminates the need to calculate the monthly instalment manually. Therefore, it removes the risk of human error. Further, this tool is free to use, and you can calculate EMIs anytime and anywhere without worrying about usage restrictions.
A loan against property is a high-value loan. Knowing the total cost of borrowing in advance will let you take an informed decision so that you can repay the amount conveniently. Thus, keep these pointers in mind before you apply for a loan against property.
