A loan against property is a secured loan, which can be availed by both salaried as well as self-employed individuals. You can avail 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
There are many lenders that feature Loan Against Property in their product portfolio. However, financial prudence calls for conducting a thorough research before settling on a lender. Compare the applicable interest rate and the accompanying fees and 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. The loan amount depends on your property’s market value and the maximum amount you can avail differs across lenders.
For instance, Bajaj Finserv Loan Against Property for salaried and self-employed individuals can go up to Rs.1 crore or Rs.3.5 crore respectively.
- Check the eligibility criteria
Every lender has a specific eligibility criterion that you need to fulfill. You need to 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 physically visit the nearest branch office of your lender with all the required documents. For online application, fill the Application Form of Loan Against Property along with the relevant documents and the lender would get in touch with you.
Post submission of the application form along with the supporting documents, lenders evaluate the risk associated with lending. This is generally done by analysing the market value of the mortgaged asset, payment record of existing liabilities, income, savings and employment or business risk.
Additional Read: Why is Bajaj Finserv The Most Preferred Loan Against Property Lender in India?
Once they complete the necessary evaluation, the loan amount is disbursed into your account. At Bajaj Finserv, the processing of your loan against property request takes up to 72 hours, resulting in quick disbursal of funds.
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