Are you worried about your child’s higher education abroad? Or perhaps in need of urgent funds to kickstart your startup company? Then a loan against property (also known as property loans or mortgage loans) could be your best bet! The process to apply for loan against property is simple. However, for first-time borrowers, the whole application and documentation process may be a bit confusing. This article overviews the step-by-step guide to applying for a property loan.

What Is a Loan Against Property?

A loan against property is a secured loan that allows the borrower to leverage their property/asset in exchange for cash for a certain period. The amount borrowed can be used for any purpose. Since the risk involved with such loans is high on the borrower’s part, the property loan interest rates charged are lower than for any other type of loan. This adds to its popularity among customers.

Steps to Apply for Loan Against Property 

The easiest and most convenient way of applying for a property loan is through the online method. It is fast and time-saving, as borrowers need not visit the lender personally. The steps to apply for loan against property are as follows –

Step 1: Select the lender and visit their official portal

Step 2: Look for the ‘LAP’ tab on the screen and click on the ‘Apply’ button

Step 3: Key in your PIN Code and hit the ‘Proceed button

Step 4: Enter your name and mobile number

Step 5: Choose the type of loan you want to opt for, the desired loan amount, PIN code, monthly income etc.

Step 6: Generate the OTP and submit the same for mobile number verification

Step 7: Provide other details, like the location of the property, monthly obligations, current EMI, PAN card etc.

Step 8: Click on the ‘Submit’ button

That’s pretty much it! The lender’s representative will get in touch with you and guide you through the next steps.

Documents Required to Apply for Loan Against Property

While applying for a mortgage loan, applicants are required to submit a few documents related to their personal information and details related to the concerned property. Here is a checklist of the documents needed for a loan against property –

• Residential/ ID Proof – Passport, Aadhaar card, Driving license, Voter’s ID, NREGA job card, letter from NPR 
• Income proof 
• Documents related to property
• Last 6 months account details
• Business proof

Loan Against Property Eligibility 

To ensure a smooth LAP loan application, borrowers must check the loan against property eligibility so they know if they are qualified for the loan.

Particulars	Criteria
Nationality	Must be an Indian national residing in India with a property in the city from where the loan is being borrowed
Age	25 to 85 years
CIBIL Score	Must be 750+
Occupation	Salaried individuals must be working professionals with at least 3 years of experience in government/private sectors and MNCs  Self-employed individuals must have at least 5 years of experience running the business
Monthly Income	INR 25,000/-

Summary

A property loan is one of the best financial tools offering a substantial amount while taking your property or asset mortgage. Anybody meeting the property loan eligibility criteria can apply for the loan; there is no restriction on end usage. Make sure you satisfy all the criteria to avoid the loan application being rejected. To apply for loan against property online, borrowers can visit the lender’s portal and fill out the online application form with details.