Documents Required for Loan Against Property

A loan against property is a secured loan where you pledge your property as collateral to raise funds for personal or business needs. To apply for such loans seamlessly, you need to provide specific documents required for loan against property, which enable lenders to assess your eligibility and approve your application. Submitting an accurate loan against property documents ensures a quicker evaluation process and avoids delays.

Loan Against Property KYC Documents Required

Documents Types	Age Proof	Address Proof	Photo ID Proof
Aadhar Card	y	y	y
PAN Card	y	y	y
Passport	y	y	y
Voter ID		y	y
Rent agreement / current Address proof			y
List of Additional documents related to your existing loan		Forclosure letter \| List of documents submitted to the bank \| Statement of account

List of Documents Required for Home Loan

Aadhar Card

Age Proof: Yes

Address Proof: Yes

Photo ID Proof: Yes

Passport

Age Proof: Yes

Address Proof: Yes

Photo ID Proof: Yes

PAN Card

Age Proof: Yes

Address Proof: No

Photo ID Proof: Yes

Voter ID

Age Proof: No

Address Proof: Yes

Photo ID Proof: Yes

Utility Bill

Age Proof: No

Address Proof: Yes

Photo ID Proof: No

Driving Licence

Age Proof: No

Address Proof: Yes

Photo ID Proof: No

Registered Rent Agreement

Age Proof: No

Address Proof: Yes

Photo ID Proof: No

Income Documents Required

To ensure smooth processing of your loan application, please provide the required income proof documents. These documents help us assess your financial capacity and determine your loan eligibility

Income Proof
Salaried Individuals	Self-Employed Professionals	Self-Employed: Non-Professionals
Salary slips for the last 3 months	Latest two ITRs (personal and business) with computation of income	Latest 2 years ITRs with computation for individual applicants and co-applicants (if borrower is an individual)
Bank statements for 1 year	Advance tax challans (if available)	Bank account statements (current and savings accounts) for the last 1 year
iii. Latest Form 16	Latest two years of P&L accounts and balance sheets (with schedules), certified by a CA (both personal and business)	Latest 2 years of audited/CA-certified profit & loss accounts and balance sheets of the firm/company (if borrower is a firm/company)
	Bank account statements (current and savings accounts) for the last 1 year
Additional documents can be asked

FAQs & Support

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Can I get any tax benefit on a Loan Against Property?

Under Section 24(b), you can get a loan against property tax benefits on the interest paid on your loan if the funds are used for financing your new home. The maximum benefit that you can avail of under this section is Rs. 2 lakh.

What is a Loan Against Property?

A Loan Against Property (LAP) is a secured loan where you pledge your property as collateral. You can borrow funds against the market value of your property for business or personal or need.

What is the maximum and minimum amount I can borrow for a Property Loan?

You can borrow between ₹30 lakh* to ₹7 crore*, depending on the value of the property and your eligibility criteria.

Can I pay extra EMI for a loan against the property?

Yes, paying extra EMIs or making part-prepayments can help reduce the principal amount and interest burden, thereby shortening the loan tenure.

What are the different forms of loans offered under Loan Against Property?

You can avail loans such as term loans with fixed EMIs or overdraft/line of credit facilities, where you withdraw funds as needed within the approved limit.

What is the processing fee for a Loan Against Property?

The processing fee for a Loan Against Property is up to 3% of the sanctioned amount plus applicable taxes.

What can a Loan Against Property be used for?

You can use the funds for multiple needs such as business expansion, working capital, education expenses, wedding, medical costs, or debt consolidation. There are usually no end-use restrictions (except for speculative or unlawful purposes).

What are the parameters for arriving at Loan Against Property eligibility?

Eligibility parameters for Loan Against Property with L&T Finance include:
Salaried: Salaried employee of any public, private, or multinational organisation and age from 23 years to 62 years

Self-employed: Self-employed with a steady income from business and age: 25 years to 70 years

Total income and property value are also taken into consideration.