Loan against property is one of the most secure and versatile methods of availing credit and can be used to finance different types of expenses. Since you can utilize it without any restriction, it is suitable for meeting a variety of expenditures like –
- Financing your kid’s education abroad
- Traveling overseas
- Handling expenses related to medical emergencies
- Business expansions
- Property purchase/construction, etc.
You can also avail a self-employed loan to meet particular business needs. For instance, if you are a doctor, you may need to improve your clinic’s infrastructure by installing advanced equipment. Or, if you are a practicing chartered accountant or engineer, you may need to hire experienced assistants who can support your growing business. Furthermore, professionals and business persons can also meet their other one-time investment needs, as mentioned above, with a loan against property.
The application process of a loan against property in India is similar to any other type of credit. An applicant has to meet the necessary eligibility criteria, submit the necessary documents, and allow the lender to evaluate the application before disbursing the amount. However, the required documents differ from ordinary loans as you avail the credit against a mortgaged asset. Let’s take a look at the necessary documents required to avail a loan against property.
Know The Documents Required For Loan Against Property
A self-employed individual must keep the following loan against property documents required handy when applying for this credit.
Documents Of Property To Be Mortgaged
The foremost necessity to avail a loan against property is having the property documents in place. It is a type of mortgage loan and you must back up with respective property documents. The sanctioning institution will calculate the Loan to Value and your subsequent eligibility to sanction a particular loan amount depending on the market value of the asset.
Here, it is essential to understand that Loan to Value or LTV is the ratio calculated based on your mortgaged property’s current market value. Now, check the documents you need to keep ready with you when applying for a loan against property for self-employed.
- Sale Deed
- Original copy of sale agreement
- Share certificate if the house property belongs in a society
- No Objection Certificate from the society if it is situated in one
These are the primary mortgage documents required. You may have to furnish any other property documents asked for depending on the lender you apply with.
To avail hassle-free finance, you may approach lenders like Bajaj Finserv that provide pre-approved offers, thus making the process of availing finance easy and save time. These offers are available on home loans, business loans, personal loans, and many other financial products.
Now, check other documents required to validate your identity and income with your lender.
Proof of Identity
Keep these documents ready as your identity proof –
- PAN Card
- Aadhaar Card
- Voter ID Card
- Driving License
- Passport
- Any valid identity card with photo issued by an authorized government body
Proof of Address
You may validate your address to the lending institution with documents like –
- Voter ID Card
- Aadhaar card
- Passport
- Utility bills like electricity bill, post-paid mobile bill, etc.
- Stamped rent agreement
- Certificate of residential address from any authorized body
- Any other document issued by the government standing as a proof of applicant’s address
Proof of Income
To avail a loan against property for self-employed, a person must also furnish income proof with documents like last 6 months’ bank account statement, IT returns, etc. However, these documents merely verify the stated facts. When availing loan against property, your property’s value gains more weight.
Additionally, you also need to meet the eligibility criteria laid down by your lender.
Eligibility Criteria to Meet
A self-employed individual must meet the following loan against property eligibility to successfully apply for the loan.
- Must have a regular source of income.
- Should the age between 25 and 70 years.
- Must be an Indian resident living in cities specified by the lender.
If you meet loan against property eligibility you may follow the process of availing a loan against property to enjoy fast disbursal within 4 days from lenders like Bajaj Finserv. Enjoy the exclusive loan against property features and meet all necessary expenses. Make repayment over an extended loan against property tenure of up to 18 years with affordable EMIs.
