If you are planning to apply for a Loan Against Property, the lender will ask you to provide various documents to assess your financial profile, the property’s value, and your ability to repay the Loan. These documents can differ based on lender requirements. Here is some information regarding the documents required to apply for a Loan Against Property:
Identity proofs
You must provide valid government-issued identity proof to verify your identity while applying for a Loan Against Property. Identity proof is the basic document needed to apply for a LAP. The most used government-issued identity proofs include an Aadhaar, passport, voter’s ID, driving license, and PAN card.
Address proofs
An address proof document confirms your current residential address. The documents provided as address proof work as identity proof while applying for a LAP. You can give an Aadhaar, passport, ration ID, utility bills, or bank statements.
Income proofs
It is mandatory for the lender to assess your ability to repay the LAP Loan. If you are a salaried individual, you need to show your income stability through documents such as the latest salary slips, bank statements, income tax returns, and Form 16. On the other hand, if you are self-employed or a business entrepreneur, you can submit audited financial statements of two to three years, Income Tax Returns, and bank statements.
Property documents
Since Property Loans are secured against the property, you need to submit documents related to the property. You must submit the title deed, sale deed or allotment letter, property tax receipts, and encumbrance certificate. You also need to provide an NOC from the housing society if required.
Loan application form
You need to fill out the lender’s Loan application form, which generally requires basic personal details, the Loan amount, the Loan purpose, and details about your property.
Property valuation report
The lender usually conducts a property valuation to assess its market value and the amount it can lend for Loan Against Property Loans. Some lenders might ask you to provide a valuation report from an authorised surveyor before approving your Property Loan.
Business documents
If you are applying as a business owner, then the lender may request additional business-related documents. Business registration documents are essential if you own a partnership firm or a private limited company. Along with business registration documents, you also should provide the GST registration certificate, partnership deed, or Memorandum of Association and Trade License.
Passport-sized photographs
Every lender asks for two to three passport-sized photographs.
Conclusion
The exact documents required to apply for the Loan might be different depending on the lender and specific Property Loan conditions. However, these are the key documents you may be asked for when applying for a LAP. It is best to check with the lender beforehand to ensure you have all the required documents to avoid delays in your Loan processing.
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