Documents Required for Loan Against Property

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Loan Against Property Documents

While making your application for a loan against property (LAP), there are certain documents that you will need to furnish. As is the case with any type of loan, the lender needs those documents to assess and verify your application.

These loan documents would indicate your identity, financial well-being, the purpose of the loan, the details and status of the property raised in collateral, and other details. Since LAP involves collateral, there will be more paperwork required than in unsecured loans.

You would have to provide all the essential documents necessary for a LAP. These include your registration, mortgage deed, etc. However, the more records you furnish, the stronger your application becomes!

In the case of joint borrowers, all the individual applicants have to present their documents and run their proposals with each other to make sure there are no discrepancies.

At Kotak Mahindra Bank, we provide our applicants with a checklist of documents. The mortgage loan checklist may differ for each individual. However, we have two generalized categories. Let us look at them.

Loan Against Property Documents for Self-Employed Individuals

Mandatory Documents
Application Form	For Proprietor/Firm/Company
Compulsory document	Pan card
Identity proof	Driving License/ Passport/ Voter's ID /Aadhaar card (Voluntary)
Address Proof	Address proof for Both Office and Residence; Passport/Driving License/Voter's ID/ Utility Bill/Bank Statement/Bank Account Passbook (Updated and no more than 3 months old) /Aadhaar card(Voluntary)
Ownership proof	Agreement Copy / Electricity Bill / Maintenance Bill with share certificate / Municipal tax bill/Share certificate
Business continuity proof	Shop and Establishment certificate/Tax registrations-VAT/Service tax/GST registrations
Firm Constitution	MOA/AOA/Partner Ship Deed/GST Registration Certificate/Form 32 for knowing latest directors
As per Program
Financial	1. Latest three years audited financials.
	2. Last three years Tax Audit Report. ( Form 3CB + 3CD in case of proprietorship and partnerships and Form 3CA + 3CD in case of Companies)
	3. GST
	4. Breakup of all secured and unsecured loans
	5. As on date List of Directors and Shareholding Pattern
	6. Existing loan Sanction letters and their corresponding EMI reflecting bank statement for last 1 year .
Banking	Last 1 year bank statement (Business Accounts)

List of Loan Against Property Documents Required for Salaried Persons

Mandatory Documents
Application Form	For Salaried
Compulsory document	Pan card
Identity proof	Driving License/ Passport/ Voter's ID/Aadhaar card (Voluntary)
Address Proof	Address proof for Both Office and Residence; Passport/Driving License/Voter's ID/ Utility Bill/Bank Statement/Bank Account Passbook (Updated and no more than 3 months old)/Aadhaar card (Voluntary)
Ownership proof	Agreement Copy / Electricity Bill / Maintenance Bill with share certificate / Municipal tax bill/Share certificate
Relationship Proof	Relationship Proof – If same cannot be proved from KYC documents submitted
As per Program
Financial	1. Latest 3 months’ Salary Slips
	2. Latest Form 16
	3. Employment Proof (Appointment Proof) only if current employer name does not match with that of the Form 16 submitted
Banking	Latest 6 months Bank Statement reflecting Salary as well as existing EMI repayment

You can also check your loan against property eligibility with Kotak Mahindra Bank.

Banks charge a documentation fee to process and act upon the documents that the applicant has sent. In Kotak Mahindra Bank, you will have to pay the documentation charges at the time of submission. For a LAP, these charges are INR 10000/- + GST + statutory dues.

If required, you can also change the documents you have provided in your LAP loan later upon payment of a nominal fee.

Before you make a loan application, you should have complete knowledge about it too. When it comes to a LAP, there are other charges apart from your interest rate. We have also provided these details on our website. You can click here to know more about Kotak Mahindra Bank’s loan against property fees and charges.

Wondering how much installment you will have to pay? Use our online loan against property EMI calculator to calculate your EMI.

While submitting your application, make sure to double-check that you have all the documents needed. Missing out on any records would only lead to disapproval of the loan application and delays. If you do not have a particular copy required, you can always speak to your loan agent or bank representative to find out about other substitutes that you can submit instead.

In total, your application should reflect a good credit score, a property that’s worth the principal amount of the loan, an income source that’s well-equipped to pay the principal, along with the interest and purpose behind the loan.

General Questions on Loan Against Property Documents

1. What are the most common documents required for a loan against property?

In general, banks require the following documents for any sort of loan:

Address and identity proof, like the Aadhaar Card
PAN Card
Bank statement of the past six months-3 years
Proof of employment or self-organization
Income tax return to rule out any legal non-compliance
Notice of previous debts, if any, and whether there are missed or delayed payments
Loan application

However, with collateral in the picture, you would be required to submit instruments that verify your ownership of the property.

2. Where can I submit documents for a loan against property?

You can mail or post the documents to your lender’s main branch or physically submit them to the nearest local bank.
However, with Kotak Mahindra, the process is faster. You can even apply online, and in a few simple clicks, you will have your loan sanctioned.

Click here to apply for your LAP loan.

FAQ's

Can I get a loan against property (LAP) without income proof?

You can easily get a LAP if you show finances that are well-equipped to repay the loan. So, if you do not have income proof, you would need to explain how you plan to repay the loan.

You can present bank statements if you have surplus funds or instruments like insurance papers, investments, etc., which provide some assurance to the bank. Moreover, the lender may ask you to discuss the lack of income sources and whether you plan on remedying that.

Chances of securing a low interest rate become dim without proper income proof. An income proof assures the lender that you are in a position to repay. However, it is possible to get a loan without but at a higher interest rate.

What is the importance of a credit score while availing of a mortgage loan?

For any loan, the lender needs to be confident that they aren’t issuing bad loans. A bad loan is essentially one that doesn’t get repaid as per the schedule and results in losses for the lending institution.

Therefore, the lender uses applicants’ credit scores to assess how likely they will repay the loan. This score is derived using their historical credit payments. It is not that those with poor credit ratings do not get loans. They do, but at an expensive rate of interest.

At Kotak, the interest rate for a loan against property can be as low as 9.25% per annum.

What are the documents required for a loan against property for SMEs?

Like individuals, businesses also need to offer professional stability and financial disposition deemed fit as per their principal amount. SMEs should furnish business records for the past 3 years and profits for the last 2 years from the date of application.

You may also be required to produce your ITR, GST registration, etc. if needed to verify the company’s functionality.

What is the time duration for receiving a loan against property after submission of the documents?

It usually takes 21 business days for any bank to process and sanction a LAP. When loans get approved in minutes nowadays, due diligence is always necessary when a property is involved.

The land records are tallied with the sub-district registrar and further checked with the development authorities to confirm the applicant’s ownership. However, we are always willing to speed up the process for applicants with valid emergencies.