Loan Against Property Documents

There are times when you might need finances on an urgent basis; in such a scenario opting for a loan against property is a better option than straining your savings. It is a handy option and using an asset as leverage would pool you a high-value loan compared to a personal loan or any other unsecured loan. 

The value of the loan depends on the market value of your property. Generally, financial institutions allow the borrowers to use the property even after the loan is sanctioned.

Loan Against Property Documents Required

Check out the list of documents for loan against property in the table below -

• Application Form

• Recent Photograph

• Address Proof

• Age Proof

• Bank Documents 

• Form 16

• IT Returns of 3 previous years

• Processing Charges Fee

• Property Documents

For Salaried Applicants

The property documents required for loan against property is different for salaried applicants and self-employed individuals. The salaried applicants require to submit -

• Identity Proof - PAN card, Passport, Driving License, Voter’s ID, Employee ID, Bank Passbook, and Ration card. Any of the above-mentioned can be used for Identity Proof.

• Address Proof - Passport, Utility Bills (previous 2 months), Bank Statements, Voter’s ID, Employee ID, LIC receipt, Ration card. Any of the above-mentioned can be used for Address Proof.

• Ownership Proof - Maintenance Bills, Utility Bills (previous 2 months), property documents. Any of the above-mentioned can be used as Ownership Proof.

• Income Proof - Payslip (previous 2 months), Promotion Letter(if any), Income Tax Returns( 3 years), Form 16, Letter from Employer, . Any of the above-mentioned can be used as Income Proof.

• Job Continuity Proof - Job Appointment Letter (in case more than 2 years spent in the same job), Employment Certificate, Experience Certificate.

• Bank Statement - Bank Statements of salary accounts (previous 6 months).

• Current Loans - Documents like Sanction letters, and Payment Track Reports of existing loans(if any).

• Investment Proof - Documents related to investments like Fixed Deposits, Shares, Assets, etc (if any).

• Property Documents - Documents like Sales Agreement, Share Certificate, Maintenance Bills, Title Deeds, Completion Certificate, Occupancy Certificate, Proof of No Encumbrance Certificate, etc., of the property.

• Processing Charge Cheque - Advance cheque for the charges regarding the processing of loan documents.

For Self-employed Individual/Businessmen

The documents needed for loan against property for self-employed individuals are required to submit -

• Identity Proof - PAN card, Passport, Driving License, Voter’s ID, Employee ID, Bank Passbook, Ration card. Any of the above-mentioned can be used for Identity Proof.

• Address Proof - Passport, Utility Bills (previous 2 months), Bank Statements, Voter’s ID, Employee ID, LIC receipt, Ration card. Any of the above-mentioned can be used for Address Proof.

• Ownership Proof - Maintenance Bills, Utility Bills (previous 2 months), Property Documents. Any of the above-mentioned can be used as Ownership Proof.

• Office Ownership Proof - Maintenance Bills, Utility Bills (previous 2 months), Property Documents. Any of the above-mentioned can be used as Office Ownership Proof.

• Business Existence Proof - Sales agreement, Saral Copy (previous 3 years), Tax Registration Documents, Company Registration License. Any of the above-mentioned can be used as Business Existence Proof.

• Income Proof - IT returns (previous 3 years), Income Computation by CA, Audited Balance Sheet, Audited P&L, Audited Tax Report(if applicable), Proof of rental income, returns and dividends, etc. Any of the above-mentioned can be used as Income Proof.

• Bank Statement - Statement of both current and savings accounts (previous year).

• Investment Proof - Documents related to investments like Fixed Deposits, Shares, Assets, etc(if any).

• Property Documents - Documents like Sales Agreement, Share Certificate, Maintenance Bills, Title Deeds, Completion Certificate, Occupancy Certificate, Proof of No Encumbrance Certificate, etc., of the property.

• Processing Charge Cheque - Advance cheque for the charges regarding the processing of loan documents.

• Current Loans - Documents like Sanction Letter, and Payment Track Report of existing loans(if any).

• Coloured Passport size photograph

Other Important Documents

In addition to the above mentioned documents, your lending institution may instruct you to submit some additional papers. These are mentioned below:

• Receipt of the purchase of your mortgaged property

• Appointment letter or employment contract (if the total duration of your present employment is for less than 1 year)

• A cheque drawn in favour of your lending institution for the submission of the loan processing fees

Conclusion

Loan against property or LAP comes with no obligation of end-usage, letting you use the credit freely. To get the amount, you will simply have to apply for the loan collateralising any of your assets. During the application process, the lender asks you to provide the required loan against property documents. All these help the lending institutions authenticate the property details and the information you have stated on your loan application form.