What are the facts to know about a loan against property?

Posted by Sarita Yadav on November 30th, 2021

With the rising number of NPA cases, getting a loan has become difficult. Organizations are more cautious in lending a loan. In a developing country like India, collecting assets through hard cash is a bit difficult. Not everyone has so much cash that you can buy something big on one go. The better option is to go for the loan.

When one applies for a big loan, he/he has to put something in the mortgage. This is done for the safety purposes that if the person is not able to pay back the loan for some reason, it can be retrieved by selling the property. This is called a loan against property. If you have a good cibil score you can also apply for this loan. The money can be used in building a house/office that is a housing loan or as a personal loan. Before applying for the loan the following documents are required:

• The loan is generally provided to an extent of 40-50% of the property.
• The person applying for the loan should have a good CIBIL score.
• Any other loan against that property should not exist
• He/she should be a resident of India
• He/she should have valid ID proof.

All these things are paid attention to before granting a loan against a property. To avoid any kind of discrepancies or fraud, a standard set of documents are required to avail of the loan. These are as follows:

• Bank statement - Last 6 months bank statement
• House ownership Proof: Property Documents/Maintenance Bill/Electricity Bill
• Income proof. Salary slip for the last 3 months
• Existing EMI
• Proof of identity: Copy of passport/voter ID card/driving license/PAN cards
• Application form and your latest photograph
• Investment Proof (if any)
• Proof of address

Because of the limited financial literacy in India, not many people are well versed in the process of loans. In this case, the organization that comes to your rescue is the Shubham housing loan. The company is well known for its financial assistance. They have disbursed an amount of up to 3000 crores and above. They have 84 branches all over India and is spread across 73 cities and 9 states. The company provides formal housing credit to those with informal incomes. They are among the first organization in India to transcend from document-based underwriting to customized credit programs for each customer. Apply for a loan against property today!