Documents required for Loan against Property in Mumbai - Feature & Benefit

Some expenses in life come all of a sudden; and during those turbulent times, arranging for the funds could be quite tedious. Personal Loan is not the ideal product for many, owing to the high interest rate on loan against property, and shorter tenure which may add further to the financial stress of the bearer.

Many a times, expenses are more evident than the income source. For example: funds required for the child’s education, or marriage expenses or impending medical bills for deteriorating health complications are some expenses that cannot be precluded.

In such situations, owning a property can always be a blessing in disguise. You can opt for a secured loan and take a step towards managing your finances. A Loan Against Property is certainly more economical than opting for An Unsecured Personal Loan.

Let’s further elucidate the benefits and prerequisites for Loan Against Property in Mumbai:

What is Loan Against Property?  

Loan against property is a loan that is availed against the property that you own. It signifies a secured loan, which is availed by keeping the property as collateral. Additionally, here the value of the property is the deciding factor for the amount or the potential of the loan that you can avail or the bank would sanction. Almost all major banks provide hassle-free Loan Against Property in Mumbai, the metro city in the country.

Different types of LAPs can be availed. You can avail a LAP against following property types:

• A self-owned piece of land
• Self-owned residential property
• Self-owned and self-occupied residential property
• Self-owned, but rented residential property
• Self-owned, commercial property
• Self-owned, but rented commercial property

Benefits of Loan Against Property

The Loan Against Property interest rate is less as compared to Personal Loans.

You can draw more with “Loan Against Property” as the amount of potential loan depends on the value of the property.

The tenure is much longer almost 15 years, which makes it a comfortable option for loan repayment.

The only downside is that the bank takes hold of the property documents and can take possession of the property if the loan is not paid.

Eligibility Criteria for LAP in India  

To Avail a Loan Against Property, you need to meet the following criteria.

If you are salaried, you should be –

In the age range of 33 to 58 years.

A salaried employee in either a public sector or a private company or an MNC.

An Indian resident living or owning a property in any of the following cities:

• Hyderabad
• Delhi
• NCR
• Kolkata
• Mumbai
• Thane
• Navi Mumbai
• Pune
• Pimpri-Chinchwad
• Ahmedabad
• Chennai
• Bangalore

If you are self-employed, you should:

Be in the age range of 25 to 70 years.

• Have a regular source of income.
• Resident of India.

Loan Against Property Documents Required for Salaried Persons 

Other than the basic eligibility criterion, various other documents required for loan against property, in case you are salaried.

Identity Proof (any one of the following)

• Passport
• Pan Card
• Voters ID Card
• Driving License

Address Proof (any one of the following).

• Ration Card
• Passport
• Utility Bills

Property Ownership Proof (any one of the following).

• Property Documents
• Maintenance Bill
• Electricity Bill
• Income Proof:

Latest 3 months Salary Slips

• Form-16

Continuity of Job Proof (any one of the following).

Current Employment Certificate

Current Job’s Appointment letter

Experience Certificate from the previous employer, along with the appointment and relieving letter of the same.

Bank Statement of the Salary Account for the past one year.

Property documents for the home/land against which you need to avail the loan.

Copy of agreement executed/ Sales Deed.

• Share Certificate
• Latest Maintenance Bill

If available, list of documents & sanction letter given by existing bank or banker

A cheque for advance processing, which is required to process loan documents for sanction.

Investment Proofs like Fixed Deposit, Shares, Fixed Assets, etc.,

• 1 passport sized colour photograph

If you have existing Loans, provide one of the following:

• Sanction letter.
• Payment Track Record

In case you are a practicing professional, submit professional degree certificate.

Documents Required for Self-Employed Business Persons LAP   

Other than the basic eligibility criterion discussed above, various other documents are required by the self-employed or business owners.

Identity Proof (any one of the following).

• Passport
• Pan Card
• Voter ID Card
• Driving License

Address Proof (any one of the following).

• Ration Card
• Passport
• Utility Bills

Property Ownership Proof (any one of the following).

• Property Documents
• Maintenance Bill
• Electricity Bill

Office Address Proof (any one of the following).

• Property Documents
• Maintenance Bill
• Utility Bill

If applicable, Office Ownership Proof (any one of the following).

• Property Documents
• Maintenance Bill
• Electricity Bill

Proof of Business Existence (any one of the following).

• 3 years’ Saral Copy
• Tax Registration Copy
• Company Registration license
• Income Proof:

Latest 3 years’ Income Tax Returns including Computation of Income, Profit & Loss Account, Balance Sheet, Audit Report, etc.

• Bank Statement:

Past year’s bank statement for both Current and Savings Accounts.

Property Documents against which you need a loan.

• Copy of agreement/ Sales Deed
• Share Certificate
• Latest Maintenance Bill

Cheque for advance processing, which is required to process loan documents for sanction.

Investment Proofs like Fixed Deposit, Shares, Fixed Assets, etc.

1 passport sized colour photograph

If you have existing loans, submit the following: 

• Sanction letter
• Payment Track Record

In case of servicing professionals, submit a professional degree certificate

Also Read: 5 Rules to Follow When Purchasing a Loan Against Property

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 5 million+ happy customers since 1989.