Are you currently facing a financial challenge that seems insurmountable? Although financing your needs through loans can be a good option, securing a standard loan is often considered a long and arduous task.
But what if we tell you there is a more straightforward, cheaper solution right under your feet? Yes, a loan against land is an often overlooked alternative, but it offers many benefits, making it a better financing option than most loans.
In this article, we will explore more about this financing tool and discuss more on loan against property documents required and the benefits it offers.
What is a loan against land?
A loan against property, or a loan against land, is a type of secured loan where you can pledge your property to finance your personal or business needs. By pledging your commercial or residential property for a loan against property, you can access 75% to 90% of the property’s value, depending on the inspection.
Benefits of loan against land
When you opt for a loan against land, you unlock many benefits that come with it:
1. Lower interest rates
The major benefit of LAP is that you can get lower interest rates. Since it is a secured loan, it reduces the risk for lenders, which allows for attractive interest rates.
2. Minimal documentation
LAP requires minimal documentation. Moreover some institutions like Tata Capital, offers the option to submit your loan application and documents online from the comfort of your couch.
3. Property usage
While your property serves as collateral, you retain normal usage rights as long as timely EMI payments are upheld, whether the property is commercial or residential.
4. Longer loan duration
Enjoy an extended loan tenure of up to 15 years, accompanied by a higher loan amount, allowing flexibility to select a tenure aligning with your preferred monthly repayment capacity.
Loan against property documents required
In most cases, the loan against property documents required is minimal. For a seamless loan process, you only need to show the following documents:
1. Loan application form
2. Passport-sized photographs
3. Photo Identity proof (Any one of the following):Aadhar card, Voter ID, Passport, Driving License
4. Address proof (Any one of the following):Ration card, Electricity bill, Passport
5. Signature verification#6. Income proof (For Salaried): Form 16 for the last two years, bank statements for the last twelve months, salary slips for the last three months
6. Income proof (For Self-employed): Income tax returns, P&L statement, Business balance sheet, bank statements for the last twelve months
How to apply for a loan against land?
Applying for a loan against land is extremely easy. Just follow the steps given below:
Step 1: The first and foremost step is to check if you fulfil the set eligibility criteria.
Step 2: Opt for a loan amount and tenure that aligns with your preferences. To make an efficient decision, you can use our LAP EMI calculator.
Step 3: After deciding on your desired loan amount and tenure, complete the application form. Provide accurate personal, property, and financial details.
Step 4: Provide the necessary documents and submit the application form.
Upon submission of the completed loan application form and necessary documents, the lender assesses the application. If all details are comprehensive and meet the lender's satisfaction, the approved loan amount will be disbursed into your account.
To Sum Up
Opting for a loan against property is one of the cheapest and quickest ways to access substantial funds. But before you decide, it is crucial to gather appropriate knowledge by knowing the benefits, comparing the pros and cons, and equipping yourself with the loan against property documents required to finance your needs.
Once you have decided to apply for a LAP, look no further than Tata Capital. Offering competitive interest rates, a seamless application process, and quick fund disbursal, Tata Capital is the trusted financial partner you need in this long journey.
FAQs
1. What are the documents required for a loan against property?
The documents required for a loan against property include identity proof, address proof, photographs, signature verification, and income proof. You can submit all these documents either online or offline.
2. What is the process of securing a loan against land?
Tata Capital ensures a seamless and hassle-free loaning process for its customers. Just follow the steps below:
- Check our eligibility criteria before applying for a loan against land
- Apply for a loan against land through our website
- Fill up the application form and submit the required documents
After successful verification, the approved loan amount will be disbursed into your bank account
3. Do we need to submit original documents for a loan against property?
No, you don’t have to submit the original loan against land documents. At Tata Capital, we offer you the option of applying online and submitting your documents digitally. However, if you wish to apply offline, you only have to submit a self-attested photocopy of your documents.
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08 February 2024
5 mins read
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