Knowing the Steps involved in Availing Loan against Property:

LAP (loan against property), as the name indicates is a special loan facility that is taken by pledging a commercial or residential property as security to the lending institution. The lender takes over the property as a security cover against the amount disbursed to the applicant. The lending institution owns the ownership right of the property pledged until the borrower repays the loan amount completely. Availing loan against property is a systematic process, if you are a first time borrower you must know the steps involved. The steps are discussed below:

Sending the application form:

The first step to avail loan against property is to approach the lender and fill the application form. Make sure that you fill the form correctly and provide the details required. Once you have filled the form, submit it to the lender so that they can review the same and process the application further. 

Processing of Application:

This is the next step. When you submit the application form, the executives at the lending institution carefully review the form and check the details. They review the income details, the loan amount applied for and the duration of the loan. Depending on the details you fill in, the executives at the lending institution would call you to further discuss the loan disbursement. While going for the discussion with the lender it is advisable that you take all the original documents to provide evidence of your income. 

After the discussion is over, the lender appoints a special team to investigate and verify the authenticity of your financial documents. Some of the important documents that you would require to submit are proof of income, papers relating to the property that you wish to mortgage and age proof. At this stage, you would need to pay the vendor the processing fees. 

Issuing a sanction letter:

After the lending institution verifies your financial credentials and is satisfied with it, the lender would send you a loan offer. The offer letter contains all the important details of the loan including the maximum amount of money the lender is willing to offer, the rate of interest applied, duration of the loan, type of interest applied and other terms and conditions. When you receive the offer letter, it is completely your prerogative to either accept or reject the offer. 

Verification of the property:

Once you accept the offer, the lending institution appoints a specialist team to investigate the legal validity of the property that you want to mortgage. During the verification process, it is better to keep your documents ready so as to avoid delaying of the disbursement. 

Forwarding the amount:

Once you submit all the essential documents and the lender is satisfied with the credibility of the property and your income, the lender pays the amount through demand draft (DD) or through a cheque. 

If you are availing home loans or loan against property from Indiabulls Housing Finance Ltd, our executives would work closely with you and guide you through every step. We take pro-active measures to help you get the required funds at the earliest.