Understanding the Application Process for Loan Against Property

Loans against property, also referred to as property loans or mortgage loans, are a kind of secured financing. Borrowers who own a property, residential or commercial, can avail of a loan against it by pledging it as collateral. Such loans that are availed of against real estate are called loans against property or property loans. The demand for these loans has increased significantly due to various factors, such as low interest rate, long repayment tenor and high loan amounts. If you are planning to apply for a property loan, you must familiarize yourself with the loan against property application process. This will help you navigate the entire process quickly and without experiencing any major hassles.

Loan Against Property Application Process: Here’s What the Process Entails

1. The first step in the process is finding out a lender who you can trust and rely on. Talk to family and friends, do some research and zero in on one lender.
2. Once you have decided on the lender, the next step in the process is applying for a property loan. These days, borrowers can apply for loan against property both online and offline. Most people prefer the online application process as it allows them to apply for a loan while sitting comfortably within their homes.
3. While filling out the loan against property application form, you will be asked to disclose information about you, such as your name, email address, income, etc. You will also be required to pay a one-time fee.
4. After receiving your loan application, your lender will decide whether to extend you a loan. If they decide in your favour, they will ask you to submit certain documents, such as income, and address proof documents, etc.
5. Once you have submitted all the documents, your lender will hire a legal expert to verify the authenticity of the information provided by you as well as verify all the documents.
6. If you pass the document verification stage, your lender will release the loan against property sanction letter. This letter will contain details of the loan offer being made to you by your lender, such as the loan amount, rate of interest, interest rate type, loan tenor, etc.
7. Go through the terms and conditions mentioned in the loan sanction letter carefully. If you agree with these terms and conditions, send a signed copy of the sanction letter to your lender. If you object to some of the terms and conditions mentioned in the sanction letter, talk to your lender and renegotiate.
8. Once you send a signed copy of the loan sanction letter to your lender, they will hire legal and technical experts to check the physical condition of your property as well as ensure that all the property papers are in place. If you pass this stage, your lender will release the loan amount in your loan account.
9. After this, you will start paying loan against property EMIs to your lender and this is when you repayment journey actually begins.