Friday, June 21, 2024

Ready To Apply For a Loan Against Property? Here's Your Ultimate Step-By-Step Guide


Borrowing money from a financial institution can help you fulfil your desires and requirements when you are short on funds. The end use of some loans like education and home is pre-determined, so you cannot use them for any other purpose.

However, if you apply for a Loan Against Property (LAP), you can use the funds as per your requirements.

Here is a step-by-step guide to getting a LAP.

What Is A Loan Against Property?

A LAP is a secured loan; you mortgage your home or apartment, and the financial institutions sanction your loan against it. You can get up to 65% of the market value as a loan on a property.

Since this loan is sanctioned against collateral, lenders assume lower risk on them, and the property loan interest rate is lower when compared to unsecured loans like personal loans. 

The step-by-step guide to a Loan Against Property is listed below.

Step 1 – Fill Out The Application Form

The first step is to fill out the application form for the loan application. You can do this online, on the lender’s website, or by visiting the housing finance company’s branch near you. 

You have to fill in details like your name, address, employment details, and the details of the property you pledge for the loan. Ensure you enter all details correctly, as the lender will verify these details before they proceed to the next step.

Once you fill out the form, a representative will contact you to confirm the details.

They also check your CIBIL score to assess your creditworthiness. A good score can help you get a lower property loan interest rate on the LAP.

Step 3 – Submit Documents

The next step is to submit the required documents for verification. You have to submit your age, address, and identity proof documents. The housing finance companies also ask for your salary slip for the last three months or proof of the existence of business and bank statements for the past 6-12 months (as the case may be). 

Apart from that, you will have to submit a processing fee cheque and copies of the title document of the property and the approved plan. 

Step 4 – Verification Process

Once you submit the documents, the financial institution will verify their authenticity. They will verify your identity, address, income proof validity and genuineness. 

They may visit your home or office to ascertain that the details submitted about your address and employment are correct.

Step 5 – Receive Sanction Letter

Once the above steps are complete and the financial institution finds all the documents and details acceptable, the lender will send you a sanction letter for your loan. 

The letter has various loan details; you should go through the document carefully to ascertain all loan terms like property loan interest rate, tenure, pre-payment clause etc. 

Step 6 – Property Evaluation And Legal Check

After you accept the loan offer, the financial institution goes to the next verification level. They assess the mortgaged property and get a legal opinion about the house or flat and the documents you have submitted to ascertain the accurate property value and if there are any disputes related to it. 

Step 7 – Get Funds

Once your lender completes the process, they start with the loan’s disbursal. You get the funds directly to your bank account within two to three working days. 


A loan on a property helps you meet many financial commitments and you don’t even have to vacate your home. When looking for a LAP, choose a reliable, customer-friendly lender like Pand understand the loan terms well.