Whether it is kick-starting your entrepreneurial venture, footing a costly medical bill or planning your child’s overseas education, a loan against property is an attractive solution to meet these big spends. This is because this loan gives you a large loan amount, a competitive interest rate and a long repayment tenor. To illustrate, while a personal loan typically gives you an amount of up to Rs.25 lakh for 5 years, a Bajaj Finserv Loan Against Property gives you a loan of up to Rs.3.5 crore and a tenor of up to 20 years.
When applying for this long-term loan, remember to keep the loan against property documents required handy. The documents generally gravitate around you, the borrower, and your property, the collateral. These documents not only determine your loan against property eligibility, but also affect how hassle-free and affordable your borrowing experience will be.
Here’s a look at the various documents required for a loan against property and how they influence your loan.
Proof of identity
Lenders ask for IDs such as a driving license, voter’s ID, PAN card or your Aadhaar card copy. This serves a couple of purposes. On the one hand lenders need to eliminate any instances of fraudulent behaviour. On the other hand, loans are customised to individuals. So, for example, if you are aged above 55, lenders will offer you a shorter loan tenor as your salaried years are numbered. You can ensure that you fit the age criteria by checking your lender’s eligibility requirements. For example, when you apply for a Loan Against Property from Bajaj Finserv, you are eligible for the loan if you are between 25 to 70 years if you are self-employed or between 33 to 58 years if you are salaried.
Financial health check
Before giving you the loan, banks and financial institutions will try to gain an overall impression of your financial status and past track record with borrowing and credit. This may take the form of your lender evaluating your bank statements, salary slips and passbooks and your credit score. The healthier your financial picture, the better the chances of you getting a handsome loan amount and a nominal loan against property interest rate.
Validation of property
Since your property is the collateral in this form of loan, lenders undertake efforts to verify the proof of residence. This could take the form of a telephone bill, an electricity bill, a ration card, an Aadhar card and so on. Further, the loan amount you actually get is subject to the value of your property. Lenders generally give a sum amounting to around 60% of the property value.
Also Read: What role CIBIL Score play for Loan Approval
Legal and insurance documents of the property
It is paramount to obtaining a loan against property that your collateral be free from litigation of any sort. To avail of this loan smoothly and quickly it is important to have all legal matters in place. Further, you will need to have the necessary insurance documents handy. For example, to be eligible for a Loan Against Property by Bajaj Finserv, your home needs to be insured against fire and other calamities for the entire tenor of your loan.
With these documents ready, applying for a Bajaj Finserv Loan Against Property is quick and easy. You can finance urgent needs with a loan approval in 48 hours and doorstep services to help you with your application. Offering an amount up to Rs.3.5 crore, quick loan disbursal, zero part-payment and foreclosure fees and easy balance transfer facilities, this comes as an attractive solution for you when you are seeking a loan against property in India. By simply entering basic contact details you get an instant approval and access to a range of customised financial solutions.