A Step-by-Step Guide to the Application Process for Loan Against Property

Loans against property have gained immense popularity over the last few years. While until a few years ago, loans against property or property loans were considered a risky choice, today borrowers understand that property loans are as safe a loan option as any. Further, benefits, such as low interest rates, high loan sanctions, long repayment tenor and zero end-use restrictions, make this financing tool an even more popular choice these days. 

If you are planning to apply for a property loan, this is what the process entails. 

Loan Against Property Application Process in India

1. The first thing a borrower must do is look for a good and reputable lender. This step will take a lot of time but it is key that you find yourself the best lender there is. Reach out to as many lenders as you can, get clarity on their eligibility criteria and whether you meet these criteria. Also, get full clarity on the terms and conditions they will be willing to extend to you on your loan. Use a loan against property EMI calculator to compare the different loan offers you have in hand and choose to go with not just the lender who is offering you the best loan against property deal but who is also reliable and reputable.

2. The next step of the process is applying for a loan. These days, one can apply both online and offline. While applying for a property loan, you will be required to submit some documents. You can get details of what documents you will need on your lender's website. Keep all the documents ready with you. Attach these documents and pay a one-time processing fee for your application to be considered submitted. 

3. Your lender will now get in touch with you with their answer. If they approve of the loan, you will be asked to submit some additional documents. These documents will help your lender decide your financial stability and ensure that the property you plan to pledge as security is truly in your name. Your lender will hire a legal expert to verify the documents and information provided by you in your loan application. 

4. If you pass the document verification stage, you will move to the property verification stage. During this step of the process, your lender will hire a technical expert to assess the condition of the property you want to pledge as security as well as its fair value. Your lender will sanction you a loan only if the technical expert they hire gives the property their full clearance. 

5. You will now receive a loan against property sanction letter. This sanction letter will contain important details, such as the sanctioned loan amount, property loan interest rate being offered to you, loan tenor, etc. If you agree to these conditions, send a signed copy of the sanction letter to your lender. If you have objections, negotiate with your lender. 

6. After the negotiations are over, your lender will release the final loan agreement. Go through every stipulation of this agreement before you sign it. You will have to visit your lender's office to sign the agreement. No signed soft copies will do. After this, your lender will release the loan money into your account.

for more detailed process read loan against property process in India. The whole process can take up to a few weeks. So, prepare yourself accordingly.