There are times when people are in an urgent need of money and instead of badgering friends and family, getting a loan against property is easy and safe. Isn’t it great to know that besides providing shelter, our homes can also help us in troublesome situations?  Your property can be an asset which can be used in times of emergency.

With a loan against property, you cannot just use your house for residential purpose but also an innumerable of reasons. In today’s time, you can easily avail it as long as you are capable of repaying it. And as the name suggests, this type of loan is secured and comes with a high loan amount.

Here are some things to note before you apply for a loan against property online:

Identify the value of your property

Every property has its value in the market based on the locality, the reputation of the builder, size, and amenities offered, and how old is the residential or commercial property. It is equally important to know the exact value of the property so that it provides the desired loan amount when you pledge it. The loan is provided depending on the current value of the property and not past or potential value. It would be better if you possess a property in a good locality as it will help you receive loan faster.

Examine the eligibility criteria

Both types of individuals: salaried and self-employed can apply for a loan against property. The process differs from lender to lender and depends on your own credit history, property value, documentation, and income. The loan against property eligibility criteria include certain factors such as the applicant must be an Indian national, he/she should be the age of 21 years, he/she must be employed in present business, he/she must earn a specific amount, and the applicant must have a good record of timely EMIs and card bill repayments.

Documents required for the loan against property

It is necessary to ensure that you have all the required documents pertaining to your property, personal details, and income. The loan against property documents required is:

For Salaried Individuals

  • Residence proof and identity card (AADHAR, PAN, VOTER ID)
  • Last three months salary slip
  • Present employer-issued form 14
  • Past six months bank statement of salary account
  • A cheque including the processing fees/administrative costs collected by the bank in processing the application

For Self-Employed Business Persons

  • Residence proof and identity cards
  • Educational qualification certificates
  • IT Returns of the previous three years
  • Bank statements of the previous six months

For Self-Employed Professionals

  • Identity and residence proof
  • Certificates that prove the academic qualifications/credentials of the applicant
  • All registration/licensing certificate pertaining to the profession of the applicant
  • Current business proof
  • Last three years’ Balance Sheets as well as Profit & Loss Statement of the company
  • Approved Income Tax statements of the company and concerned person for the last three years
  • Bank statement of the last six months

Compare numerous lenders and their interest rates

You should evaluate the interest rates of two to three lenders and check which one is providing the lowest loan against property interest rates and meeting your expectations the best. Other than this, do not forget to check the processing fee, pre-payment liability and any other changes before borrowing the loan finally.

Also, check the liability of your bank in case of loss of your property papers as the original papers are kept with the lenders until you clear all the concerned dues. In the present scenario, the interest rates vary from 8.75% to 14% based on the lender. You should negotiate and evaluate thoroughly before signing any document.

Get an estimate of the amount you need to borrow

Having an estimate in mind helps to borrow the right amount as a loan, for example, if you are using the funds to procure office space, determine the price of the chosen property while adding costs for interiors or necessary equipment. Also, make a note of your financial requirements since it will aid you to review your finances and select a loan amount that meets your expectations and caters to your financial situation.

Many a time, as an individual, it becomes challenging to select the correct loan provider to seek a loan against residential, commercial, and industrial property for any purpose. In such cases, IndiakaLoan.com can help you to get the right assistance from experts thus, making the loan process quite easy for you.

With an immense experience of 25 years in the field, it has around 40+ tie-ups with banks and NBFCs and presence in more than 500 cities with more than 100 offices to aid you to get the loan from the suited provider.