1 min read
25 May 2021

A loan against property is a secured loan where you need to pledge tangible assets like a plot of land, a flat or home, or a business premise owned by you to avail of funds. The money can be used to address various needs such as business expansion, making a down payment for a car/ house and funding higher education of your children, among others.

The rate of interest on loan against property, and the documents required differ across lenders. To make things simpler, we’ve listed down all the necessary documents that will help you avail of a loan against a property if you are a salaried or self-employed individual.

Address Proof

Your address proof is one of the most important documents required while availing of a loan against property. You need to submit valid address proof records such as a passport, ration card, utility bill, bank account statement, voter card, LIC receipt, or a letter from a recognized public authority, etc., along with your loan application.

Identity Proof

Along with your address proof, you need to submit your identity proof, including your PAN card, Aadhaar card, passport, or voter card. However, select lenders only consider a PAN or Aadhaar card as proof.

Additional Read: How to apply for PAN card online

The documents mentioned above act as age proof, as most lenders maintain an age threshold for borrowers. For instance, Bajaj Finserv offers a loan against property to self-employed individuals aged 25-70 years and salaried individuals aged between 33-58 years.

Additional Read: How can you avail tax benefits nn your loan against property?

Income Proof

If you are a salaried individual, you need to submit the latest payslips along with bank account statements for the past three months. On the other hand, if you are self-employed, you might need to submit your bank account statements for the past 6 months.

This enables lenders to gauge your repayment capability within the pre-decided tenor.

Proof of Ownership of the Property to be Mortgaged

Whether you are salaried or self-employed, you need to furnish property documents and maintenance or utility bills as proof of ownership. As a self-employed individual seeking a loan against property by mortgaging an office property, you must submit proof of the business existence.

Additional Read: How to apply for a loan against property: a step by step guide

Past Income Tax Returns

Most lenders need borrowers, especially salaried individuals, to submit copies of their previous income tax returns. While some lenders may ask for copies of IT returns for the past couple of years, some may require 3 or more. This is done to get an idea about your annual income and gauge your loan-repayment abilities considering other financial commitments.

A high loan amount coupled with competitive interest rates and a flexible tenor makes a mortgage loan a prudent financing option for varied short and long-term needs.
 

Certificates Required For Property

S.No

Certificate Type

1

Encumbrance Certificate

2

Occupancy Certificate

3

Possession Certificate

4

Non-Encumbrance Certificate

 

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