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Today, there are options aplenty for getting funds for any kind of financial emergency. One of the ways to obtain hefty funds is through a loan against property. This type of loan gives you immediate access to funds, while requiring you to pledge your residential or commercial property as collateral.
This secured loan provides you with ample funds, enabling you to expand your business, sponsor your child’s higher education, pay for wedding expenses, or handle an unexpected medical emergency.
The loan against property eligibility criteria and application process are slightly different from those of other types of loans because the lender performs additional checks and verification before approving the loan.
Here’s a look at how a loan against property is processed to help you understand the application process and improve your loan experience:
Step 1: Check the eligibility criteria
The first and foremost step is an assessment of your eligibility for a loan against property. The eligibility criteria can vary from lender to lender, and meeting the requirements will increase your chances of being approved.
Step 2: Fill out the application form correctly
Start filling out the application form with the requisite details, including your personal information, loan amount, income details, property details, tax status, and so on. Ensure that the information entered is accurate and free of errors. Even a minor informational error could cause your application to be rejected.
Step 3: Confirm the details
After you’ve applied for a loan against property, a representative from the lender will get in touch with you to verify your personal, financial, and property details. Your credit report will subsequently undergo examination.
Step 4: Submit the required documents
This is the most crucial step, in which you must submit documents verifying the information and your eligibility for the loan against property. The list of documents includes your identity proof, address proof, income proof, ITR, and property documents. Make sure you provide the most recent documents, and that the property is not involved in any kind of legal dispute.
Step 5: Await the document verification
After receiving the paperwork, the lender will carry out a thorough background investigation, including finding out your employment history, credit history, income status, and other personal records. The lender may also request a face-to-face verification to better understand your needs and financial situation. These checks are carried out to make sure the loan amount will be repaid on time.
Step 6: Assessment of the property
The lender will subsequently assess the property, determining the authenticity of the documents and estimating the market value. The property’s true market value will eventually determine the final loan amount that will be sanctioned.
Step 7: Loan approval and disbursement
After successfully completing the verification process, the lender will contact you to discuss the loan against property interest rate they can offer and other loan terms and conditions. Once you sign the loan agreement, the lender will approve the loan, disbursing the funds in your account.
Final Thoughts
Do keep in mind the aforementioned process if you’re considering applying for a loan against property. If you’re seeking a lender that provides attractive interest rates and a flexible repayment tenure, IndusInd Bank is a good option. They enable you to unlock the hidden value of your property and offer immediate long-term funds you can use to meet your professional or personal needs.
