Loan against property is a secured loan helping borrowers in times of financial crises. Due to its no-usage restriction, the advance is one of the most preferred options. However, one must know the application procedure for a loan against property to ensure hassle free approval.
Here is the entire process discussed in detail.
Step-by-step application procedure for loan against property
Even after applying for a loan, the application process for loan against property side plays a vital role since they take the property as collateral. They will make sure that things stay in place so that if borrower faces any issues and fails to complete the repayment, they can securely take the property under their control.
Here are the steps in brief:
- Loan application
Lenders will move on with the process after completion of the person’s loan application. Ensuring that it is done correctly with proper information is vital in this regard.
- Approval call
Financial representative of that institution will contact the concerned person to confirm details provided in application. They might also ask for the CIBIL score status and other related information of borrower.
- Document verification
Lenders will check and verify all the submitted documents of borrowers. In case they need additional papers, they’ll contact them for the required.
- Receive sanctioned letter
This approves the authentication of documents submitted and verified. Thereafter, a lender will hand the sanction letter to the applicant, containing all the loan terms and conditions.
- Examination of property value
At this stage, lender will initiate the investigation of property value to that nothing crosses the legal boundary. It is generally done during the period when borrower goes over the sanctioned offer.
- Disbursal process
It is the final step of a loan against property which ensures verification and sanction of loan taken. Financial institutions will directly disburse the amount from borrower’s account from hence onwards.
Things to remember while applying for loan against property
Application for any loan can be a complex process if not put in an organized fashion. It is essential to abide by certain significant points other than the ones relevant to each borrower.
- Understand the property’s value
Having a set idea of property value is crucial to get the right loan amount from lender. Every financial institution will run an evaluation process to know the property cost based on various factors. If the person has a rough estimation of the value beforehand, it’ll help them land a suitable loan amount.
- Compare and choose lender
Many lenders hold different perks, extra charges etc. They can vary in terms of foreclosure amount, processing fees etc. Knowing those proficiently will make it easier for borrowers to choose and opt for the one that suits them.
- Go over the interest charges and loan amount
Running through interest rates and landing on the maximum loan amount amidst several prospective lenders is the next big thing. Financial institutions that checks all boxes regarding suitable interest and loan amount is the most feasible one.
- Check eligibility criteria
Every borrower has to meet certain parameters set by lenders. It concerns factors such as whether the person has stable or rigid income status, any pending debts etc. and other factors to qualify for a loan against property. Go over the eligibility criteria for loan against property and proceed likewise.
- Choose a suitable application method
A borrower can opt for an online or offline application procedure. If the financial institution has option for online application, it is much more convenient and easier for borrower. They can also choose to do so offline, for which they need to visit lender’s branch office with list of documents needed for application.
Besides, top NBFCs extend customised pre-approved offers to existing customers. These offers are available on several financial products like loans against property, home loans, etc. Thus, individuals opting for a loan against property can check their pre-approved offers by submitting essential details like name and contact number.
The application procedure for loan against property couldn’t get any easier without proper assistance from financial institutions. Lenders play an important role in this scenario to the point that they can be seen as paving the way. Hence it is significant to keep these processes noted while applying for a loan against property.