Your Comprehensive Checklist for Loan Against Property

Before reviewing the documents required for a property loan, let's first explore the fundamentals of a loan against property and why you should choose one.

What is a loan against property?

A loan against property, as the name implies, is obtained from a bank against your property. It is a secured loan where the property acts as collateral for the loan. A loan against property can be sanctioned against your home, commercial property, or land.

The current market value of your property usually determines the loan amount for which you are eligible. A loan against property is a great option if you are a salaried individual or a small business owner looking to raise money.

What are the advantages of a loan against property?

Loans against property provide tax advantages under Sections 24(b) and 37(1) of the Income Tax Act 1961. Here are some additional major advantages:

• Increased Sanction Amount

• Extended Period of Repayment

• Continued Possession of Property

• Quick Loan Disbursement

• Taxation Benefits

At IIFL Home Loans, we offer loans with repayment terms as long as 10 years and loan sanctions within 30 mins!

What documents are required for a property loan?

The majority of lenders adhere to a standard list of mortgage loan documents. Here is the common mortgage loan document checklist for salaried and self-employed applicants applicable for both Shakthi Loan and Secured Business Loan.

In addition to the basic KYC documentation, applicants must submit other mortgage loan documents in case of a secured business loan.

List of Documents Required for a Loan Against Property for Salaried Applicants

The Secured Business Loan against property document list for salaried applicants is as follows:

Income Proof:

• Form 16/ income tax returns

• Bank statements (or passbook)

• Salary Slips

Property Documents:

• Copy of Chain documents of the property (if applicable )

• Copy of Receipt made to the developer (if applicable)

• Copy of Buyer Agreement

• Copy of Agreement to Sell (if executed)

List of Documents Required for a Loan Against Property for Self-employed Applicants:

The mortgage document list for self-employed applicants is as follows:

Income Proof:

• Form 16/ income tax returns

• Bank statements (or passbook)

Property Documents:

• Copy of Chain documents of the property (if applicable )

• Copy of Receipt made to the developer (if applicable)

• Copy of Buyer Agreement

• Copy of Agreement to Sell (if executed)

In conclusion

Loan Against property documentation requirements are simple, making it easier to qualify for the loan. When all of these features of a loan against property are considered, it can be the most viable option for obtaining funds to finance a substantial expense.

At IIFL Home Loans, our Shakthi Loan and Secured Business Loan follow a minimal documentation approach and offer loans starting from Rs. 2 lakhs. We understand your requirements and provide quick processing time, with loan approvals issued within 30 minutes! Apply Now with IIFL Home Loans and get access to funds almost immediately!

FAQs

1. Can I get a loan against the property without income proof?

You can get a loan against property without income proof, provided you submit all other necessary documents.

2. Is it possible to avail of a loan against my business property?

Yes, you can secure a loan against your commercial or residential property.

3. Is a loan against property a secured loan?

Yes, a loan against property is secured, as your property acts as a collateral asset.

4. Can a loan against property be used for any purpose?

Yes, a loan against property can be used for business or personal use.

5. Can I get a loan against property without a job?

Yes, most lenders provide loans against property to self-employed individuals as well.