Loan against property is a loan against your existing property as a security. This multi-purpose loan puts funds at your disposal to use as you wish. It unlocks the hidden value in the property you own. Loans against property can come in handy when other sources of funding get exhausted. It’s important to understand that a loan against property is totally different from a mortgage.
The value of the loan against property can be anywhere between 40-60 % of the property value, the paid up value of the property and other factors depending upon the existing market conditions. Take a property loan today and use it for any kind of requirement.
Both Salaried as well as Self-Employed people can avail Mortgage Loan, irrespective of the income. You can avail a loan against your property to fulfill your financial requirements such as business expansion, your childs higher education, marriage of your child, any unforeseen medical emergency or even for holidaying abroad.
The general factors taken into account while determining the eligibility of a loan against property are listed below:
- Income
- Age (Min. 21 Years)
- Property Valuation
- Existing Liabilities (if any)
- Current Work Experience
- Financial Documents
- Number of Dependents
The property should have a clear title, it should be marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation on the property. In case your property qualifies the mentioned criteria, the following documents are required to create a mortgage:
- Title deeds of the property.
- Other property related documents, if any.
The repayment of loan is done through EMI (Equated Monthly Installments). It can be paid through Post Dated Cheques (PDCs) or Electronic Clearance System (ECS) from any account approved by Reserve Bank of India.
Documents Required
To processing your loan application bankers need some genuine documents that help the bankers to establish all claims stated by you. Almost all the banks required similar type of documents:
- Identity
- Age Proof
- Resident Address Proof
- Income proof of all the applicants
- If Salaried, Employment Details & Pay Slip
- Business Profile (Balance Sheet and P/L Account)
- Bank statement of last 6 months
- Photograph
All you have to do is to provide supporting documents so that the loan process can start moving forward.
