Loans against property or property loans are an excellent way to arrange funds at low-interest rates and for an extended tenor. Property loans allow borrowers to get access to a substantial loan amount. More importantly, the loan money comes with zero end-use restrictions and the borrower can use the money as they like. These benefits have made loans against property quite popular. If you are planning to avail yourself of a property loan, here’s a small guide on what to expect when you apply for a loan against property online. 

1. Loans against property are high-value and long-tenor loans. Thus, one must try their best to avail of these loans on the best terms and conditions possible and only thorough research can help one find the right loan partner for them and negotiate for the best possible terms and conditions. So, borrowers must never apply for a loan against the property before doing proper research and getting a clear idea of what each lender is offering in general and what each lender may be willing to offer them in specific. 

2. Once, backed by proper research, you have decided on the lender you wish to go with, apply for loan against the property. Property loan applications can be made both online and offline. Please note that if a property has more than one owner, applying for a loan against that property is possible only if all the owners are okay with the idea and are willing to sign the loan papers. 

3. Applying for a loan against property would require you to attach some documents along with your application. Your lender will ask for KYC and address proof documents. They will also ask for income proof documents to ascertain your repayment capacity and therefore, the eligibility for the loan amount you wish to borrow. They will also ask for all property documents. Keep all these documents ready with you for a hassle-free loan application process. 

4. Once you have made an application your lender will decide whether to approve or reject your application. You will know their answer within a few days.

5. If they do approve your loan against the property application they will verify all the information as well as documents provided by you. If you have falsified information or lied anywhere in your loan application, your application will get rejected. 

6. If you pass the document verification step of the process, your lender will hire a technical expert to check the property you wish to pledge as collateral. This will take some time. The quality of the collateral helps lenders decide the terms and conditions of the loan in the case of property loans.

7. If you pass both the document verification and property verification phases, your lender will extend you a loan offer. Read the offer carefully and understand every single thing mentioned in the offer. If you do not understand something, hire an expert. Help them make you understand. If you don’t agree with any of the terms and conditions, renegotiate with your lender. Sign your loan agreement when you fully understand everything mentioned in the agreement and agree with all the terms and conditions. 

This is what the loan against property process entails. The whole process can take from a few days to a few weeks. So, plan accordingly.