Loan against property is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan. If you own a valuable asset in the form of a self-occupied house or a commercial property you can go for it. The criterion for applying for a loan against property is that it should be a freehold and self-owned property, having a clear and marketable title. The loan is given as a certain percentage of the property’s market value.
You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation and sending your child to overseas for study. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan. If you own a valuable asset in the form of a self-occupied house or a commercial property you can go for a loan against property.
The documents required while applying for loan against property are similar to those of home loan except for three additional documents. The documents required vary from Company to Company
Identity proof–A copy of passport, driving license, voters ID or PAN card with your photograph
• Proof of residence–A copy of your passport, ration card, driving license, telephone bill or electricity bill to show that you reside at the same place as mentioned in the documents.
• Income proof–The proof of income for salaried individuals will differ from that of self- employed individuals. Salaried people need to submit their latest salary slip, Form 16 (along with salary certificate from the employer), and their bank statement for the last 3 months. Self-employed people need to provide their IT returns for the last 2 years, balance sheet, and profit & loss account, and bank statements for the last 6 months as proof of income.
• Photocopies of all the property documents need to be handed over prior to sanction of the loan.
• You also need to give a declaration stating that the loan amount would not be used for the purposes of carrying out any illegal activities or for speculative activities.
• A valuation report of the flat from the professional value appointed by the company.