A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Documents Required for a Loan Against Property (LAP)

    Loan against property, like the name suggests, is a loan that is availed using one’s property as collateral. The loan amount that an individual can obtain from this kind of loan solely depends on the value of the property. Both commercial and residential properties can be used to obtain a loan against property.

    Eligibility to Obtain a Bank Loan Against Property

    Although the eligibility criteria for obtaining a LAP is not an extensive list, it is important to understand what you need to do to obtain one. Mentioned below are the eligibility criteria for obtaining a LAP.

    • A salaried individual who is a permanent employee of a company can apply for a loan against property
    • Self-employed professionals and self-employed individuals are eligible to apply for a loan against property
    • Banks usually require you to have a stable monthly income, good savings, and will also analyse your debt obligations
    • The loan amount that you are looking for must correspond to the value of the property. Any loan amount too high when compared to the value of the property will be rejected
    • An individual must have a good credit score in order for banks to release a loan against property

    Loan Against Property Documents Required for Salaried Individuals

    Income Proof

    • Three month’s salary slip and form 16

    Job Proof (Any one of the documents mentioned below)

    • Employee certificate
    • Job appointment letter
    • Experience letter (Including previous employers)

    Bank Statement

    • One year statement

    Photo ID (Any one of the documents mentioned below)

    • Driving licence
    • Passport
    • Voters ID
    • PAN card
    • Aadhaar card

    Address Proof (Any one of the documents mentioned below)

    • Aadhaar card
    • Passport
    • Ration card
    • Utility bill

    Property Ownership Proof

    • Property documents
    • Electricity bill
    • Maintenance bill

    Property Documents

    • Sale deed
    • Maintenance bill
    • Share certificate
    • Sanction letter from banker, if applicable

    Other Documents

    • Processing cheque
    • Investment proof, if applicable
    • 1 passport size photograph

    Loan Against Property Documents Required for Self-Employed Individuals

    Income Proof

    • Three years income tax returns
    • Profit and loss account
    • Audit report
    • Balance sheet

    Business Proof (Any one of the documents mentioned below)

    • Company registration licence
    • Shop establishment act
    • Tax registration copy

    Bank Statement

    • One year statement of both current and savings account

    Photo ID (Any one of the documents mentioned below)

    • Driving licence
    • Passport
    • Voters ID
    • PAN card
    • Aadhaar card

    Address Proof (Any one of the documents mentioned below)

    • Aadhaar card
    • Passport
    • Ration card
    • Utility bill

    Office Address Proof (Any one of the documents mentioned below)

    • Property documents
    • Electricity bill
    • Maintenance bill

    Property Ownership Proof

    • Property documents
    • Electricity bill
    • Maintenance bill

    Property Documents

    • Sale deed
    • Maintenance bill
    • Share certificate
    • Sanction letter from banker, if applicable

    Other Documents

    • Processing cheque
    • Investment proof, if applicable
    • 1 passport size photograph

    Documents Required for a Bank Loan Against Property for Indian Residents

    Bank Statement

    • One year statement

    Photo ID (Any one of the documents mentioned below)

    • Driving licence
    • Passport
    • Voters ID
    • PAN card
    • Aadhaar card

    Address Proof (Any one of the documents mentioned below)

    • Aadhaar card
    • Passport
    • Ration card
    • Utility bill

    Property Ownership Proof

    • Property documents
    • Electricity bill
    • Maintenance bill

    Property Documents

    • Sale deed
    • Maintenance bill
    • Share certificate
    • Sanction letter from banker, if applicable

    Other Documents

    • Processing cheque
    • Investment proof, if applicable
    • 1 passport size photograph

    How Does Loan Against Property Work?

    Loan against property as the name indicates is a type of loan that is taken by pledging one’s property. The property acts as a collateral. One can pledge any kind of property like a residential building, commercial space, or just a plot to avail a loan against property.

    If you have a property registered under your name, you can approach lenders asking them for a loan against your property. The lender will assess the market value of your asset and will sanction the loan if the title is clear. The lender will approve a certain percentage of the market value of the property as a loan which you can use for any purpose. People take loan against property for many reasons like expanding your business, education, studying abroad, taking a vacation, or for medical treatments.

    Loan Against Property Eligibility Calculator

    A loan against property eligibility calculator is an online tool that tells you, by entering basic information about yourself, if you are eligible for a loan against property. This will take a lot of factors into consideration including the city an individual lives in. Other factors that the calculator takes into consideration are total liabilities and assets of the borrower, repayment capability, the value of the property, age and qualifications of the applicant, number of dependants, income of the applicant’s spouse, and the legality of the property.

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