When applying for a Loan Against Property (LAP), lenders require a range of documents to assess your eligibility, verify ownership, and evaluate your repayment capacity. Here’s a comprehensive documents checklist for a Loan Against Property mortgage:
1. KYC Documents (Know Your Customer):
- Identity Proof (any one of the following):
- Aadhaar Card
- PAN Card
- Passport
- Voter ID Card
- Driving License
- Address Proof (any one of the following):
- Aadhaar Card
- Passport
- Utility Bills (electricity, water, gas, etc.)
- Rent Agreement (if applicable)
- Bank Passbook with Address
- Driving License (if updated with current address)
2. Property Documents:
- Title Deed: Original sale deed or title deed that proves ownership of the property.
- Chain of Sale Deeds: Complete property ownership documents tracing back to the previous owners, if applicable.
- Encumbrance Certificate: This certifies that the property is free from legal liabilities and encumbrances.
- Building Plan: Approved by the municipal corporation or other local authority, especially for constructed properties.
- Property Tax Receipts: Up-to-date property tax payments for the pledged property.
- Occupancy Certificate (OC): If the property is ready for possession.
- Allotment Letter: If the property is part of a housing society, builder, or development authority project.
- No Objection Certificate (NOC): From the builder or society, if applicable.
3. Income Proof (for Salaried Individuals):
- Latest Salary Slips: Usually for the last 3-6 months.
- Form 16: Issued by your employer for the last 2 years.
- Bank Account Statements: For the last 6 months, showing salary credits and financial transactions.
- Income Tax Returns (ITR): Typically for the last 2-3 years.
4. Income Proof (for Self-Employed Individuals or Business Owners):
- Profit & Loss Statement and Balance Sheet: For the last 2-3 years, audited by a certified Chartered Accountant (CA).
- Income Tax Returns (ITR): For the last 2-3 years, including computation of income.
- Bank Account Statements: Business and personal accounts for the last 6-12 months.
- Business Registration Proof: Depending on the type of business (e.g., GST registration, partnership deed, certificate of incorporation for companies).
- Proof of Business Continuity: This can be trade licenses, sales tax registrations, or other documents proving the existence of the business for a specific period.
5. Bank Account Statements:
- Salaried: Personal bank account statements for the last 6-12 months.
- Self-employed: Both personal and business bank account statements for the last 6-12 months.
6. Photographs:
- Passport-Size Photographs: Usually 2-4 recent photos.
7. Loan Application Form:
- Completed and signed loan application form provided by the lender.
8. Existing Loan Details (if applicable):
- Loan Account Statements: For any existing loans (such as home loans, car loans, personal loans), for the past 12 months.
- Sanction Letter or Loan Agreement: For any ongoing loans, showing loan terms and repayment details.
9. Credit Report:
- The lender will typically pull your credit report from credit bureaus like CIBIL, Equifax, or Experian. It’s advisable to have your own credit report ready to review beforehand.
10. Power of Attorney (if applicable):
- General Power of Attorney (GPA) or Special Power of Attorney (SPA) if someone is applying on your behalf or if the property is jointly owned.
11. Co-Applicant/Guarantor Documents (if applicable):
- If you’re applying with a co-applicant or have a guarantor, their KYC documents, income proof, and photographs will also be required.
12. Other Documents (Lender-Specific):
- Some lenders may ask for additional documents based on specific requirements, such as:
- NOC from Previous Lender: If the property was previously mortgaged and the loan has been paid off.
- Utility Bill Payments: To verify address and property status.
- Affidavit of No Encumbrances: Certifying that the property is free from liens or claims.
Summary:
To ensure smooth processing of your Loan Against Property application, having all the necessary documents in order is essential. By submitting accurate and complete documents, you can expedite the approval process and improve your chances of securing the loan at favorable terms.