Financing big-ticket personal expenses requires a sizeable funding source that does not induce any restriction to the use it is put to as these expenses can be of different nature. While not many financing options cater to this need, lenders have long introduced customised funding solutions like loan against property whose uses extend beyond personal expenses.
A property loan is a secured funding option that brings lump-sum funding at your disposal against simple eligibility requirements and at affordable rates. You must, however, submit all the necessary loan against property documents required by the lender to establish eligibility when applying. Below is a detailed list of documents and necessary eligibility criteria you need to fulfil to avail the loan. Let’s take a look.
Documents Required for Property Loan Application
Documentation for property loan can be categorised into different types based on their association with the lender requirements. Furnish the following loan against property documents when applying for the advance to receive hassle-free approval.
The first and foremost document is the application form for a loan against property that you must duly fill in before submitting. The lender usually asks for personal details along with your employment and financial details that you need to provide accurately for hassle-free loan processing.
You also need to fill in the loan amount you seek to avail along with a suitable tenure you deem fit for its repayment as per your financial capacity. When filling in the loan amount and tenure, make sure to check your affordability for the advance with the help of an EMI calculator available online. It should help estimate a suitable EMI that you can pay affordably based on the loan amount and tenure selected, and as per that you can alter the values entered to decide on the right one.
Proof of identity
The standard proofs of identity accepted by lenders include documents issued by the government or any authorised body carrying the name and photograph of an individual. They can include –
- PAN card
- Aadhaar card
- Voter ID card
- Driving license
Individuals employed with a reputed organisation can also provide their employee identity card carrying their names and photos issued by the employer.
Proof of address
Any document issued by the Central or the State Government or any other authorised body carrying the person’s residential address can serve as a proof of residence. It can include documents like –
- Aadhaar card
- Voter ID card
- Rental agreement
- Sale deed for the house
- Utility bills like electricity bill, broadband bill, water bill, etc.
- Ration card
You can also provide other documents establishing your permanent residence as a proof of address to the lender when applying.
Proof of income
While income and identity proofs are common for all applicants, the documents serving as proofs of income differ with the occupational status of the individual, which can be either salaried or self-employed. Below is a look at all such income documents.
A salaried individual can provide documents like salary slip, bank account statement, passbook, and income tax return filed for one or two previous years as required by the lender as the necessary loan against property documents.
In the case of self-employed applicants, income proof can extend to bank account statements for 6 previous months, financial statements like balance sheet, profit and loss statement, and income tax returns filed for two to three previous years.
Alongside these documents, individuals must also provide property documents to establish ownership.
Proof of property ownership
A loan against property can be availed against various properties, including personal assets like residential houses to commercial ones like commercial house property, business assets, etc. The document requirement can vary based on the asset provided to the lender for the purpose of collateral financing. The standard requirements includes –
- Sale deed
- Allotment letter for a house property
- Rent agreement
- Tax receipt
The list is only indicative and the actual requirement for documents can vary with the lender selected.
Before applying for the advance, make sure to keep all necessary loan against property documents in place. As it is ideal to apply for a loan online today for faster processing and approval, make sure to arrange the soft copies of all documents before sending your application for hassle-free loan processing.