Loan Against Property Documents Required

The documents required while applying for loan against property are similar to those for home loans except for three additional documents. Besides the pre-requisites such as proof of identity, income and residence, you will also need to provide property documents, a declaration, and a valuation report.

Detailed list of documents required

Proof of income: Copies of last three years income tax returns (along with copies of Computation of Income/Annual accounts, if any), Form 16/Form 16A, last three months salary slips, copies of the last 6 months statements of all the active bank accounts that reflect your salary/business income details etc.

Age proof: Copy of the school leaving certificate/driver’s license/passport/ration card/PAN card/voter identity card etc.

Address proof: Utilities bills, such as phone and electricity bills, need to be provided to prove that you are actually staying at your current address.

Identification proof: Documents with your photograph.

Sometimes, one document, if it contains a photograph, the current residential address, and the correct age can be the proof for all three mentioned above.

Employment details: If your company is not well-known, a short summary about the nature of the company, its business lines, its main customers, its competitors, number of offices, number of employees, turnover, profit, etc. may be needed. Usually, the company profile that is available on the standard website of the company is enough.

Property papers: The bank may require title deeds and other documents relevant to the property. This will be important as the loan can be taken only against free-hold property. Also, it can be only about 40-60 per cent of the cost of property. It is important for the bank to establish the value of the property and its legal status before the offer can be considered.