List Of Documents Required For Loan Against Property

Loan against property is the type of loan facility availed against the collateral security of a commercial or residential property. This loan could be in order to fulfil any personal needs such as marriage expenses, medical expenses, education expenses, business requirements, etc. It is as a secured loan.However, the main requirement for a loan against property is the existence of tangible collateral security. The tangible could be a property which can attain a good market value. The potential loan amount eligibility will be decided upon the valuation of the property before the loan is approved.A loan against property can be availed against different property types such as self-owned residential property, self-owned and self-occupied property, self-owned piece of land, self-owned commercial property, etc.Banks and non-banking financial companies not only look for the collateral but also inspect the other essential factors such as applicant’s age, income details, employment duration, etc.When applying for a loan against property or a secured loan, one must consider the loan against property documents required to get an easy approval. It becomes relatively simpler if you have all the documents in place for a loan against property.Following are the loan against property documents required by the lending institutions:

• PAN Card
• Aadhaar Card
• Passport
• Driving License
• Voter’s ID

• PAN Card
• Aadhaar Card
• Birth Certificate
• Voter’s ID
• Driving License

• Passport

• Salary slip
• Income tax returns
• Letter from the employer
• Income Tax Returns of the past 3 years
• Statement of Profit and Loss Account
• Balance Sheet
• Business Address Proof
• License of Practice

1. Proof of identification – Foremost, the lending institutions will require you to submit identification proofs in order to establish and verify your identity. ID documents acceptable are:
2. Proof of age – Lending institutions need to establish your age so that the tenure of the loan can be decided accordingly. Following documents are acceptable as age proof:
3. Proof of residence – Residence documents are needed to verify the type of property one is residing in and for establishing whether it is a rented property, self-owned, etc. Following documents are acceptable as proof of residence:
4. Income documents – Income documents are required to determine the loan-repaying capability of the borrower. Following income documents are applicable if you are salaried or self-employed:
5. Property documents – Amongst all the loan against property documents, property documents are the most crucial.Following are the property documents required to be submitted:

• Voter’s ID
• Ration Card
• Utility Bills (Electricity, Telephone, Gas, etc.)

• Non-Objectionable Certificate (NOC) from the society/builder
• Registered Sale Deed
• Allotment Letter
• Sale Agreement.
• Occupancy Certificate
• Property Tax Receipts, Maintenance Bills and Electricity bills
• Approved floor plan
• Payment receipt or the bank account statement showing payment to the builder

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.