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Loan against property is a secured credit option wherein you must pledge tangible assets like a flat, business premise, or a plot of land owned by you to avail the funds. The proceeds from this loan can be used to address different requirements like business expansion, funding ward’s higher education, making down payment for home or car etc. The loan against property interest rate and documents, both vary across lenders. However, to boost your loan against property eligibility chances, it is crucial for you to hold all the required documents.
Here is a list of the necessary loan against property documents you must hold before you apply for it.
- Address proof
Address proof is one of the crucial documents required when you apply for loan against property. You must submit the valid address proof records like the ration card, passport, bank account statement, utility bill, voter card, etc., along with your application.
- Identity proof
You must also submit your valid identity proof like aadhaar card, PAN card, voter card, passport etc. These documents serve as age proof, as many lenders keep an age threshold for loan against property applicants.
- Income proof
In case you are a salaried individual, you must submit your latest bank statements along with salary slips for the past 3-6 months. You may also need to submit documents showing breakup of your unsecured and secured loans, any existing loan sanction letter and its corresponding EMI reflecting bank statement. On the contrary, if you are a self-employed individual, you may have to submit your past 1-year business account statement.
- Ownership proof of the property or plot to be mortgaged
No matter whether you are a self-employed or salaried individual, you will have to provide the property/plot documents, utility, and maintenance bills as ownership proof.
- Past IT or income tax return
Many lenders require you to provide your past income tax return copies. While few lenders might ask for IT return copies for the last couple of years, others might usually require copies for the past 3 years. Such documents are asked by lenders to know about your yearly income and accordingly gauge your repayment capacity considering your other crucial financial commitments.
Conclusion
As loan against property is a secured loan, the approval of your application will depend massively on the lender’s evaluation of your EMI affordability. Thus, to boost your chances to avail the loan against property, take the help of loan against property EMI calculator. Such calculators help you to compute your EMI by adjusting the repayment tenure to find the optimal tenure as per your repayment capacity. While computing your optimal EMI, ensure to factor in your monthly unavoidable expenditures and contribution towards your life goals. Placing an application after knowing your optimal EMI will not just increase your approval chances but also lower your chances of committing loan defaults in the future.
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