Loan Against Property : Overview

Loan against Property / Mortgage loan is obtained by the way of mortgaging the asset with the lending institute. The value of an asset or property should be enough to qualify the sanction of the loan amount as needed by the borrower. Loan against Property (Mortgage loan) is opted for when the amount required is considerably more and cannot be raised by the means of unsecured loans and the repayment period is comparatively more than 5 years. Generally the properties having appreciating value in market are considered good for mortgage Loan like Land, Residential or commercial premises etc.

The lending institutions follow the procedure of assessing or the valuating the property to ascertain its market & future value and also the authentication of ownership. The borrower cannot mortgage the property not owned by him or her. In that case the owner of the said property can be a co-borrower and share the liability towards repayment of the loan. This mortgaged property may be liquidated by the lending institute in case a borrower fails to pay the loan.The interest rates are higher than Home Loan but cheaper than Personal Loans or Loans against Securities.

Loan Against Property : Documents

Documents required for applying for loan against property (MORTGAGE LOAN) are same to those for home loans there are some additional documents for loan against property. List of documents for loan against property are as follows.

PRE SANCTION DOCUMENTS for Loan against property / Mortgage loan :

1. Pan Card is Mandatory.
2. For proof of Identity : Pan Card/ Passport/ Voting I Card/ Driving license.
3. Age Proof : Pan Card/ Passport/ Driving License.
4. Residence Proof : Electricity bill/ Passport/ Telephone bill.
5. Income documents for :
   • Self employed -- 3 yrs Income Tax Returns.
   • Salaried --- Form 16 for last 3 yrs & Salary certificate for previous three months.
6. Copy of bank statement for previous six months, reflecting salary or the regular business transactions.
7. Work Experience :- Minimum two years for salaried as well as self employed.
8. 4 Photos

POST SANCTION DOCUMENTS For Loan Against Property / Mortgage Loan :

1. Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.

This are following steps taken by banks during process of loan.

• Application form is login
• Personal Discussion is done by bank officer with coustomer
• Bank's Field Investigation (All documents are Verifif by bank which given with application form)
• Bank cheques CIBIL report
• Sanction Letter
• Signing of agreements and submitting post-dated cheques
• Disbursement