How Loan Against Property Application Process Work in India?

Loan against property is one of the easiest to obtain as long as you are the owner of the property. If the property is owned by two or more individuals, then all the owners must be co-applicants of the loan. You can use self-occupied residential as well as commercial property to get a loan from a lending institution. Some lenders offer customized loan against property products that meet the requirements of different individuals.

This article is designed to act as a quick guide for your loan against the property application process.

• Visit the lender’s branch or website
• Familiarize yourself with the loan against property eligibility and make sure you are meeting these criteria which will include age, income and residence.
• Collect all the documents listed and make sure they are attached or uploaded with the application form. Most lenders will ask for proof of ownership. 
• Once you have submitted the application, the lender will verify the details shared before approving the loan. If your application does not pass muster, it will lead to rejection, which will lower your overall credit score.
• If your application is approved, the money is transferred to your account. You can use the loan amount to pay for a wedding, start a new business or invest in a new one, pay for urgent surgery or medical emergencies, etc. However, you cannot use the money you get from loan against property for speculative purposes or activities prohibited by the government. 

Use the loan to value or LTV ratio to determine the maximum loan amount you can get. In case of doubts, always reach out to the customer care executive of the lender and get your queries answered.

Must Read: Top 6 Benefits of Loan Against Property That you Must Need to Know