Simplifying the Process: Applying for a Loan Against Property - Loan Trivia


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Thursday 8 February 2024

Simplifying the Process: Applying for a Loan Against Property

If you are planning to apply for a loan against property, you must familiarize yourself with the loan application process. Doing so would allow you to navigate the challenges associated with the loan application process easily and also reduce the loan application and approval time. This is what the loan against property application process entails. 

1. The first step in the loan against property application process is finding a reputed, reliable lender who is known for their customer-friendly policies. There is no scarcity of lenders in the market right now. However, finding the right one will require you to dedicate time and energy. 

2. Once you have decided on the lender, the next step is to apply for a property loan. These days, individuals can apply for property loan both online and offline. Most people prefer the offline method of applying for a loan as it helps save time and energy.

3. While applying for a loan, your lender will ask you to disclose certain personal information about you, such as your income, age, existing loan EMIs, etc. This information will allow them to get better at who you are and what loan offer would be right for you.

4. After your lender receives your loan application and if they decide to extend you a loan, they will ask you to submit certain documents, such as income, identity and address proof documents. 

5. Once you submit these documents, your lender will verify all the information provided by you. They will hire someone to verify the authenticity of the documents provided by you as well as the information contained in these documents. If they see no reason to doubt your repayment capacity and creditworthiness, they will extend you a loan offer through a sanction letter. 

6. If the terms and conditions of the loan are agreeable to you, you can sign a soft copy of the loan sanction letter and send it back to your lender. Once your lender receives this copy, they will move to the next stage. 

7. The next stage is verifying all the property papers and physically checking the property you plan to pledge as collateral. Your lender will send a technical expert to check the property. They will also hire a legal expert to check all the property papers. If these experts give the property a nod, your lender will release the final loan agreement. 

8. Your lender will now release the loan money in your loan account. After this will start your loan EMIs.

The loan against property application process is fairly simple. However, the entire process is quite long. Loans against property involve a hefty sum and therefore, lenders are quite careful about who they lend money to. Further, lenders lend money only when the pledged collateral is a high-value collateral with high resale value. To minimize the risk involved for them, lenders make their best efforts to make sure they lend to only the most creditworthy and reliable borrowers. Therefore, the entire loan against property verification process takes time. Loan applicants must keep anywhere between a few days to a few weeks for such loans. If they need money urgently, they must opt for a different financing tool, such as a personal loan or a top-up loan on a home loan.

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