A loan against property is a secured loan, which both salaried and self-employed individuals can avail. You can avail of this loan by mortgaging any residential or commercial property and using the borrowed amount to address various needs such as funding wedding expenses, expanding your business and managing medical emergencies, among others. If you are looking to apply for a loan against property, following these steps would ensure a hassle-free and smooth borrowing exercise:
Conduct a thorough research
Many lenders feature loan against property in their product portfolio. However, you should conduct thorough research before settling on a lender. Compare the applicable interest rate and the accompanying charges like processing fee, statement charges, foreclosure charges, EMI bounce charges, etc., of various lenders before sealing the deal.
Find out the maximum loan amount
Once you have zeroed in on prospective lenders, find the maximum loan amount you can avail of. The loan amount depends on your property’s market value, and the maximum amount you can avail of differs across lenders.
For instance, Bajaj Finserv Loan Against Property for salaried and self-employed individuals is Rs. 5 crores and even more.
Check the eligibility criteria
Every lender has a specific eligibility criterion that you need to fulfil. You should be an Indian resident, either salaried or self-employed, within a certain age bracket.
Additional Read: Fees and Charges for Loan Against Property: Explained
You also need to submit a few documents like identity and address proof, bank account statement of past months, proof of ownership of the property to be pledged as collateral, IT returns, etc., along with the loan application.
Fill the application form
You have two options to apply for a loan against property - online or offline. If you wish to apply offline, you need to visit the nearest branch office of your lender with all the required documents. For online application, fill the application form of loan against property with the relevant documents, and the lender will get in touch with you.
Post submission of the application form and the supporting documents, lenders evaluate the risk associated with lending by analysing the market value of the mortgaged asset, payment record of existing liabilities, income, savings and employment or business risk.
Once they complete the necessary evaluation, the loan amount is disbursed into your account. At Bajaj Finserv, processing your loan against property request takes up to 72* hours, resulting in quick disbursal of funds.
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