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What are the documents required for Loan Against Property? (Updated List)

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If you have a property with a clear title, you can get a loan against it. You will need to produce particular documents, as is the norm with all loans. The lender will establish your identity, credibility, and financial well-being through these documents.

The documents you submit will also indicate to the lender the purpose of the loan and the status of your property, among other details. Requirements may vary, but generally, loan against property documents required are as follows:

If You Are a Salaried Individual

If you are an applicant or co-applicant with a regular job and draw a monthly salary, the documents you need to produce are:

  1. General
  • Completed application form along with your latest passport-size photo.
  1. Proof of residence and identity proof (KYC)
  • PAN card (mandatory).

Any one of the following documents:

  • Aadhaar card.
  • Driver’s license.
  • Valid passport.
  • Voter ID card.
  1. Proof of Income Documents
  • Last three months’ salary slips.
  • Form 16 for the previous two years.
  • Income tax returns acknowledgment slips for the last two years.
  • Last two years’ bank statements from your salary bank account.

If You Are a Self-Employed Individual

For applicants or co-applicants applying for a loan against property, you need to submit the following documents:

  1. General
  • Completed application form along with your latest passport-size photo.
  1. Proof of residence and identity proof (KYC)
  • PAN card (mandatory).

Any one of the following documents:

  • Aadhaar card copy.
  • Driver’s license.
  • Valid passport.
  • Voter ID card.
  1. Proof of Income Documents
  • Income tax return documents.
  • Assessment orders for the last two years.
  • Computation of income with an e-acknowledgment certified by a chartered accountant.
  • Profit and loss statement with auditor’s report. Profit and loss statement with auditor’s report. (There are much free profit and loss statement template for google sheets you can find on the internet)
  • Audited balance sheet including relevant annexures
  • Documents of other sources of income like rent, dividends, and interest, if any.
  • Bank statements for the last six months for all associated bank accounts.

Property Documents Required

In addition to the above documents, you will also have to submit the following documents required for your loan against property:

  • Title Deeds and all associated agreements.
  • Link documents.
  • Occupancy certificate.
  • Approved plan.
  • Non-encumbrance certificate.

Other Miscellaneous Documents

In addition to the documents mentioned so far, you need to submit the following documents:

  • Receipt of property purchase (payment proof).
  • Appointment letter from your employer if your employment is less than a year old.
  • Professional qualification certificates in case you are self-employed.
  • Details of other ongoing loans with proof of timely repayment for the last six months.
  • A cheque for the processing fee.

Conclusion

The documents mentioned here are the usual loan against property documents required by a lender. As the requirements may vary slightly from lender to lender, contact your bank for a specific list of documents needed.

Frequently Asked Questions

How can I use the money from a loan against my property?

Although you need to declare the purpose of your loan in writing, you can use the money for multiple uses like education, travel, buying a second property, and home improvement.

Is a co-applicant mandatory?

Although not legally required, lenders prefer you to include a co-applicant, especially in the case of jointly-owned property.

What are the risks of a loan against property?

If you fail to repay the loan, the lender can take possession of your property. Therefore, it is in your interest that you do not default on your payments.

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