Getting a loan by mortgaging a property, is one of the most common ways to raise a lump sum of money whenever necessary at an affordable interest rate. While borrowing, one should ensure that you are not borrowing way beyond your income. It is always recommended that you take a loan with EMI worth only 65%of your net income. It is also important that you take loans for a shorter period. People are often tempted to take loans for a longer duration because the EMI payable is comparatively lower than in the case of a shorter-duration loan. Longer duration loans are not recommended because the interest that is payable on these loans are comparatively higher.

Assetscan-home loanAnother golden rule to follow while availing of a loan is that you should be sure to make your monthly payments on time. On failure to do so, you may incur a penalty and it may also affect your credit score. Thus affecting your capacity to avail of the loan in the future. I should also be kept in mind to take insurance on the loan to ensure that you and your family do not face any form of financial difficulty in the repayment of the property or even lose the property. The loan documents are generally longer and you must read all the terms and conditions of the loan agreement to avoid any unforeseeable situations in the future.

  • The application form is filled and duly signed.
  • Income proof – salary slips, Form 16, and bank account statements (for salaried applicants). Bank statement, financial statements, and income tax returns (if you are self-employed)
  • All documents related to the title of the property

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Various documents for availing of a loan against property.

The various document necessary are:

  • Identity proof:

The borrower should submit either one of the following as identity proof: PAN card, Passport, Driving License, Voter’s ID, Employee ID, Bank passbook, and Ration card. He is also required to furnish the address proof by providing documents such as Passport, Utility bill (telephone, electricity, water, gas) less than 2 months old, Letter from a recognized public authority verifying the customer’s residence address, Bank passbook, or Bank account statement, Voter’s ID, Ration card, LIC policy/ receipt, etc.

  • Income proof:

The income proof required may vary from being employed to a self-employed or professional fee. The required documents for those that are employed or a salaried applicant includes documents such as your payslip, Increment or Promotion letter, Income Tax returns (for 3 years), Form 16, and a certified letter from your employer. You will also have to submit proof of your job continuity.

You should also submit your bank statement of your salary account for the last 6 months. If there is a loan that is pending it is also important to ensure that you provide the details of the same along with the sanction letter and the payment track record. If the person has investments then he is responsible to submit the same as well with details of fixed deposit, fixed assets, shares, etc.

  • Property documents:

The various property documents that need to be submitted include sales deed, latest maintenance bill, link documents, encumbrance certificate, a title deed, Conveyance/ Lease Deed, etc. In case of applying for a bank loan to carry out the construction process, then an approved plan by the concerned authorities needs to be submitted. You are also expected to submit documents showing that all the taxes due on the property are also paid.

In cases of businessmen or self-employed person, he may submit a Sales deed/ agreement (executed), Saral copy (3 years old), Copy of tax registration, Company registration license, etc. show the existence of the business. He should also show Income Tax Return and Profit & Loss Account balanced duly certified by a Chartered Accountant.

Along with all these documents, you must provide a cheque to furnish the cost of processing the documents for the loan sanction.

The various documents required for availing loan against property have been summarized in the table below.


It is to be stated that securing a loan against property is the most secure mode of availing credit facilities. One of the reasons why people prefer to take a loan against property is because it is easy to acquire the loan and is hassle-free. You just have to get the documents of the property verified and avail the loan against property. You should also keep the No Objection Certificate (NOC) along with the property documents. The loan against property can be obtained by anyone self-employed, salaried, partnership firms, and private limited companies.

The application for the loan against property can also be made online through the lender’s website. You can fill the e-form by providing your details, property, and employment details. You can also upload documents after scanning them. You will also be needed to submit the OTP generated on the registered number for the authentication of the transaction. Some lenders also may demand other documents depending on the employment type, type of mortgage loan, etc. It is also to be noted that all these documents need to be attested.


Summing up it can be stated that availing of a loan against property is the easiest way to loan. The loan can be acquired by attaching residential, commercial, or industrial property. The borrower can avail of a lesser interest rate if the mortgaged property is residential. The main advantages of acquiring this loan include lower EMI, Lower interest rate, faster loan approvals, etc. Thus it is to be concluded by stating that credit availed through this mode is the easiest and hassle-free method of obtaining the same.