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
    • Passport
    • 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
    • Photograph

If you want to apply for Loan Against Property, you can go with FinBucket.

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
    • Paperwork
    • 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.

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