Loan Against Property

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Loan Against Property

A Loan Against Property is a secured loan that is given to you against mortgage of a residential or a commercial property with the lender for various needs or any other personal purpose. The asset remains as collateral with the lender until the entire loan amount is repaid.
Any Resident, Indian Individual (salaried/ self-employed professional/self-employed nonprofessional) can avail loan against property.
  • Step 1: Submit your loan application along with required set of documents.
  • Step 2: Your application would be assessed on the basis of various eligibility and funding norms.
  • Step 3: A property valuation and title check may be carried out by the company representative to determine the property value and legal clearance of the property.
  • Step 4: Submission of the original property documents are required along with signing of documents.
  • Step 5: Upon finding all the documents in order, QuickPaisa will disburse the loan amount.
Having a co-applicant will increase your eligibility and your chances of getting the home loan sanctioned. However, it depends on the policy of the financial institutions or banks whether a co-applicant to the loan is mandatory or not.
A co-applicant can be any of the following on the basis of general acceptance:
  • 1. If you are an individual: Your parents, your spouse or even your major children who are earning members of the family can be your co-applicant.
  • 2. A co-owner of your property has to be a co-applicant (even if he is non-earning member) but a co-applicant need not be a co-owner.
  • 3. Non-Individual organizations like a partnership firm, an LLP, and a private limited company can also be a co-applicant.
The eligibility of a Loan against Property is calculated on the basis of age, income, property value, stability, nature of work, liabilities etc.
EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is completely paid off. It comprises of the interest as well as the principal amount.
Normally a guarantor is not required. However, this will depend upon the loan facility and financial strength of the customer. Further, it depends on the policy of financial institutions or banks depending upon the risk categorization of the borrower.
Salaried customers
  • 1. Two passport size photographs,
  • 2. KYC documents,
  • 3. Six months bank statement,
  • 4. Salary slip of last three months,
  • 5. Form 16 (Latest)
  • 6. Statement of account of existing loans if any.
Self Employed Professional / Self Employed Non-Professional
  • 1. Two passport size photographs,
  • 2. KYC documents,
  • 3. Last three years ITR and CA certified/audited financial statements for last two financial years,
  • 4. Six months current account bank statement
  • 5. Statement of account of existing loans if any.
Note: This list of documents specified above is a general set of documents required at the time of application of loan, however, there may be a need of any other document depending upon the requirement of financial institution
Fixed rate of interest means rate that remains constant during the entire tenure of the loan.
A floating rate of interest means rate in which interest rate varies periodically over the loan tenure depending upon the market conditions.
Loan against property has a maximum tenure of 15 years generally, but it may vary from one financial institution to another.
Loan to Value (LTV) is a term that is used to express the ratio of a loan to the value of the asset mortgaged. The loan is usually offered in the range of 60% to 70% of the market value of the property.
In most of the cases Property insurance is mandatory in order to protect your property against uncertainties like earthquake, fire or any damage and destruction due to natural and man-made calamities, during the tenure of the loan. However, it depends on the discretion of the financial institution or bank to get the property insured or not.