- Documents required for a loan against property
- If the borrower is self-employed
- Documents for salaried people
- Documents for all kind of people
- How to manage the EMI on loan against property
- Use lump sum amount to repay
- Try to pay extra EMI every year
- Refinance loan to cut the burden
- Make repayment your priority
Loan against property is also known as a secured loan. There is various reason to avail loan against property. However, the loan is availed by mortgaging
- An existing property like
- Commercial property
- Residential property
- Industrial property
- Falt, plot, land, etc.
- However, the amount of the loan is decided by the lender based on
- The income of the borrower,
- The value of the property
Documents required for a loan against property
If the borrower is self-employed
- Form 26 (AS) for the current financial year.
- Profit of the last 2 years
- Profit and loss statement
- Credit report
- List of creditors and debtors
- Amortization schedule
- Statement of an account which supports another current loan (if any)
- Bank statement of last 6 months
- The current statement of the bank of the last 12 years
- Last three years of financial statements
- Income Tax Return
- Computation of Income
- Tax Audit Report with the complete set of financials
- Value Added Tax
- Service Tax report
- Sanction letters such as
- CC limit
- WC limit
- OD and term loans
- Acknowledgment receipts
- For ITR filed without a digital signature.
Documents for salaried people
- Last 3 months of payslip
- Amortization Schedule
- Statement of accounts
- last 2 years form 16
- ITR of the last two years
- Bank statement of last 6 months at least
- Appointment letter
- Increment letter (if any)
Documents for all kind of people
- Copy of Pan card
- If there is more than one applicant then relationship proof of the applicants
- Marriage certificate
- Birth certificate of a child
- Ration card
- Residential address proof
- Telephone bill landline
- Phone bill
- Electricity bill
- Processing fees cheque in favor of the bank
- Application form
- With a signature, and
How to manage the EMI on loan against property
Once your loan application is sanctioned, further, you have involved efficient management of the monthly EMIs. Here are a few ways by which you will get to know how to manage the monthly EMIs in the more efficient ways
Use lump sum amount to repay
- If you receive any bonus or gain profit then it is the golden chance to pay the lump sum amount of the loan.
- Paying lumpsum amount at once will reduce the tenure of your loan and charge less interest rate comparatively.
- It will also reduce the burden.
Try to pay extra EMI every year
- By paying off an extra EMI every year will reduce your allover outstanding amount of loan.
- It will let you reduce the tenure of the loan.
Refinance loan to cut the burden
- However, if you find that the cost of your loan can become lower and another lender offering better rates.
- Switch to that lender who is offering better rates at different intervals.
- Furthermore, the opportunity allows you to save a large amount of interest by shifting the lower rate of interest.
- However, the switch will bring out again to the
- Appraisal process
- Payment of a fee
Make repayment your priority
- Paying EMIs on time will increase the creditworthiness.
- Decide your EMI close to the sate of your salary date.
- It will save you from penalties and other troubles also.