List of Documents Required for Loan Against Property and Home Loan The applicants must prepare their Loan Against Property and Home Loan applications thoroughly including all supporting documentation. Proper documentation is crucial as it facilitates the entire application process and enhances its success rate. If one knows which papers are necessary beforehand, it makes the entire process simpler and quicker.
Loan Against Property Required Documents
For a Loan Against Property, lenders require quite a few documents that show your eligibility: basis on which they also perform property valuation. The documentation required includes:
1. Identity Proof
- Aadhaar Card
- PAN Card
- Voter ID
- Passport
- Driving License
2. Address Proof
- Utility bills- electricity/ water/ gas
- Aadhaar Card
- Passport
- Rent agreement if any
3. Income Proof
- Employed Applicants:
- Current salary slips (last 3 months)
- Form 16 or income tax returns for the last two years
- Self Employed Applicants:
- Profit/Loss statement and balance sheet for the last three years
- ITR for the last three years
- Business registration certificate/ proof of business existence.
4. Property Documents
- Title deed or sale deed of property
- Approved layout plan of the property
- Encumbrance cert. – to show that the property has no disputes
- Proof of payment of property taxes
5. Bank Statements
Bank statements for the last 6 months in order to determine income and financial stability
6. Other Documents
- Dully filled Loan application form.
- Recent passport size photographs.
- Documents Required for a Home loan
Documents for Home loan are slightly irregular in nature, given that, the buyer’s repayment capacity as well as the bought property’s value is assessed.
1. Proof of Identity and Address: As in the case of a LAP, any one of the Aadhaar Card, PAN Card, or Passport may be attached.
2. Proof of Income:
- Salaried Applicants:
- Recent salary slips (3–6 months)
- Form 16
Self Employed Applicants:
- Verification of business registration and business registration certificates
- Profit & Loss Account along with balance sheet
- ITRs for at least 2–3 years
3. Documents Relating to Property
- Sale agreement and or allotment letter
- NOC from builder / society
- Approved Building Plan
- Clearance certificate title
4. Statements from Banks: Submission of bank statements covering a period of 6 months to a year as proof of financial solidity.
5. Other Relevant Documents
- Evidence of the down payment (receipt or transaction slip).
- Completed loan application form alongside passport-sized photographs.
Key Differences in Documentation for LAP and Home Loan
| Category | Loan Against Property | Home Loan |
| Purpose | Loan based on owned property value | Loan to purchase a new property |
| Property Documents | Title deed and proof of ownership | Sale agreement, NOC from builder/society |
| Additional Needs | Encumbrance certificate | Proof of down payment |
Tips to Ensure Hassle Free Processing
- Organize Documents: Ensure that all documents to be submitted are gathered along with any other necessary papers.
- Check Property Papers: Examine the documents to determine if they are complete and whether the properties are properly registered.
- whether there are any special requirements by your lender and ensure that you have all the needed documents.
- Ensure Accuracy- Go through all forms and details to prevent any delays or refusals.
Conclusion
Whether you are looking for, Loan Against Property or Home Loan, you need to have the correct documents for a hassle free experience. Different lenders might have different requirements so it is best to confirm it with the respective corp. If you keep your documentation in order and take the time to call the lender to see what is expected for the type of loan, you can expect approvals on a faster scale with fewer problems in the application process.
