Getting funds for important and major expenses like going abroad for education, home renovation, wedding, and medical expenses can be quite challenging. If you do not have enough savings or your credit card limit is low to cover these expenses, then in such times, the assets you own, like a residential property, can come in handy. You can leverage your assets and apply for a loan against property.

A loan against property (LAP) is also commonly known as a mortgage loan. It is a secured form of credit that you can avail of by providing your valuable asset as collateral. Your property remains with the lenders as a security cover for the amount you have against it, and it will be in the lender's possession until you repay the full amount.

The interest rates for such a secured loan are usually lower than for an unsecured loan, such as a personal or a credit card loan. This is because, in a loan against property, the lenders have the security of the asset you pledge, and therefore, the risk of loss is less for them.

While getting a loan against property is easy nowadays as there are many lenders in India that offer this credit at competitive interest rate, to get the funds, you must comply with the formalities. One such formality is to submit the necessary documents required for mortgage loan as required by the lender.

While the list of mortgage loan documents required may vary from one lender to another, you must do your research well in advance about it and choose a lender carefully that has minimal documents requirements.

Here is a general document required for the property loan checklist, as required by most lenders in India.

 §  The application form duly filled out and signed

§  Proof of identity (you can submit one of the following documents)

·       PAN card

·       Aadhaar Card

·       Driving License

·       Passport

·       Voter ID

§  Proof of residence (you can submit one of the following documents)

·       Voter ID

·       Passport

·       Aadhaar Card

·       Copy of any utility bill like electricity bill or gas bill

§  Bank state for the last six months reflecting the salary credit or business income

§  Copy of the Form 16 or ITR (income tax returns) field for the last three years

§  Proof of ownership of the property (you can submit one of the following documents)

·       Copy of the title deed

·       Copy of the sale agreement

·       Latest maintenance bills

·       The water tax or municipal tax receipts for the last six months

·       Non-encumbrance letter received from the cooperative housing society

·       Permission letter to create a fair mortgage from the joint owners of the property

§  Copy of payment receipt made to the developer

§  Confirmation from the society that the Bank's lien on society records is noted

How to apply for a loan against property?

Now that you know about the mortgage loan document list, you must also know the steps involved in applying for a loan against property. Today, as most of the reputed lenders offer 100% digital services, applying for a loan has become easier than ever before. You can apply for the loan from the comfort of your home or office and avoid the hassles of visiting the nearest branch.

While the steps involved in online application for loan against property may vary from one lender to another, most of the reputed lenders like IIFL Home Loans have a simple process. Here is a step-by-step guide to apply for LAP.

Step 1

Visit the official IIFL Home Loan website and click on the ‘apply loan online’ button available on the webpage.

Step 2

Choose the type of loan you wish to apply for, it could be a home loan or a loan against property (secured business loan)

Step 3

An application form will appear on your screen. Fill in the necessary details such as your full name, contact details, age, etc.

Step 4

After you fill the details and submit, you will be prompted to get an OTP (one-time password) on the mobile number you have provided in the form. Enter the OTP to verify the contact information.

Step 5

After phone number verification, generate your OTP and submit it.

Step 6

Enter the PAN number, current location (city), and other details.

Step 7

Click the 'submit' button to complete the application process.

At this stage, before you hit the submit button, make sure that you double-check all the details you have mentioned, correct if there are any errors, and rectify them.

Step 8

After you submit the form, wait until you get a call from the IIFL Home Loans representative. They will call you to guide through the further process and even assist you at every step until you get the disbursement.

Loan against property for business needs

Generally, most people apply for a loan against property and use the funds they borrow to meet their personal expenses like renovating their home, paying for a child's marriage, etc. However, you can leverage your assets and use the LAP to meet your business needs. The quick approval process offered by lenders like IIFL Home Loan ensures that you have enough working capital to leverage any business expansion opportunity or purchase raw materials to keep the production process going.

Why opt for a loan against property from IIFL Home Loans?

IIFL Home Loans is one of the leading NBFCs in India that offers a comprehensive business loan option to meet your financial needs and business goals. They give quick loans for small businesses with minimal documents, and you can get the funds you need at competitive interest rates. Also, you can get the loan for an extended tenure of up to 12 years, allowing you to easily repay the amount. Lastly, you can secure a loan of up to Rs. 10 Crore, which gives you the flexibility to understand significant business expansion, invest in new equipment or purchase raw materials and take your business to the next level. Whether you’re buying a loan against property from nbfc or a bank ensure you assess your requirements. Use a loan against property emi calculator for more insights.