It is now quite easier to apply for a loan against property. Individuals can complete the entire application process online from the comfort of their homes. Moreover, the documentation process is also very simple, needing just a few essential ones.
However, it is essential to provide all the necessary documents for hassle-free approval. Prospective applicants aiming to apply for a loan against property must take note of the list of documents required for property loan. This will ensure a smooth transition of the entire process.
What documents are required for availing a mortgage loan?
Most loan providers have a similar requirement when it comes to documentation. The required documents for salaried individuals looking to apply for a loan against property are:
- Identity and address proof: Passport, Voter ID card, PAN card, Aadhaar card, Driving License or utility bills. Any other Government approved photo ID, or address proof will also do.
- Employment proof: Employee ID card
- Income proof: Latest payslips, bank transactions for the last 3 months, Form 60 and Income Tax Returns.
- Property documents: Documents of the property that an individual plans to mortgage, Title documents as specified by the legal team.
Documents required for self-employed individuals are:
- Identity and address proof: Same as that of salaried individuals
- Employment proof: Documents related to ownership of the business, like registration certificate, partnership agreement, etc.
- Income proof: Primary bank account transactions for the last 6 months, IT returns, business-related financial documents like Profit and loss statements, balance sheet, etc.
- Property documents: Similar to that of salaried applicants
Please remember the above list of documents is only indicative. The loan provider may ask applicants to submit additional documents as and when necessary.
What are the eligibility criteria for a property loan?
For salaried applicants, the loan against property eligibility criteria are as follows:
- Nationality: Indian
- Age: 25 to 58 years
- Record of employment: At least 3 years of employment in a public or private organisation or an MNC
- CIBIL score: 750 or greater
The eligibility criteria for self-employed applicants are:
- Nationality: Indian
- Age: 25 to 70 years
- Record of employment: Minimum 5 years in the current business
- CIBIL score: 750 or greater
Apart from these eligibility criteria, there are certain factors that come into play:
- The upper age limit indicates an applicant’s age at the time of loan maturity. Thus, while giving the loan, lenders check the number of years an individual can provide active service. For borrowers nearing their retirement age, loan providers will offer a shorter loan tenor.
- Individuals’ Fixed Obligation to Income Ratio (FOIR) also plays a vital role in determining their eligibility. The lower their FOIR higher will be their eligibility.
Before applying for the loan, prospective applicants must use a loan against property eligibility calculator to get an idea of their eligibility status.
How to apply for a loan against property online?
Borrowers planning to apply loan against property online can follow the steps given below:
Step 1: Visit the official BHFL website
Step 2: Fill in the loan against property application form
Step 3: Submit all documents as required
Step 4: Wait for property verification.
Step 5: The loan will be submitted to the borrower’s account after the necessary verification
Usually, in the case of most loan providers, representatives from their end will contact the applicant in order to guide them through the document submission and verification procedure.
Now, there are several financial institutions that provide prospective loan applicants with pre-approved offers enabling a simple and easy loan approval process. Individuals can avail them on various financial products like home loans and others. They can check the pre-approved offers by mentioning their names and phone numbers.
These are the documents that borrowers must keep handy before applying for a mortgage loan. Interested individuals must always check with their preferred loan provider the loan against property interest rates before filling the application. This will assist them in calculating their desired principal amount, suitable tenor and also their expenditure on monthly payments.
