Funds are inevitable in every stage of your life. Be it for your higher studies, wedding or a dream vacation; funds are necessary to meet the goals. Most of the people run after personal loans to find funds in such situations. But, sometimes, the property you hold may be the key to your needs. A loan against the property is a secure and convenient option that can cover all your financial needs. Most banks provide you online application for the loan against the land. It is important to understand the loan application process to make things easier.
Read on to understand the different steps in processing a loan against property.
Fill the application
Just as in any other process, the application process for a property mortgage loan begins with filling an application form. Fill up the correct personal details, employment details and the details of property pledging as collateral. As the details will be verified afterwards, it is essential to be accurate with the details.
Verify the details
Once you fill-up the application form, the lenders will contact you to verify the financial information and property details. This will be done based on the details you furnished in the application form. The banks will also check your credit score in this step. After running a necessary check on all the details, a loan offer will be made for you.
Submit the documents
Post verification, the next step is submitting the supporting documents. In this step, you need to furnish all the required documents to verify the given information in the application form. These documents also check your eligibility for the loan against property. Usually, the essential materials include identity proof, address proof, salary proof, and the details of the pledged property.
Wait for further verification
The lenders will verify the submitted documents before processing the loan. Banks will check whether the papers provided tally with the details filled in the application form. Lying about the details in the application form can increase the chance of rejection of mortgage loan against property.
Collect the sanction letter
If all the submitted documents are valid, the lenders will sanction you a loan against land, with the property as the security. This happens only when the bank considers you as creditworthy. The lender will confirm the authenticity of the documents. On this stage, you will be able to view the terms and conditions of the offered mortgage loan against property.
Wait for the legal check
Upon accepting the offer, your application will be moving to the next stage of verification. Here, the lender will assess your property on the legal grounds to check if the land has any legal dispute. This process also ensures that the property has the required value.
Receive the funds
Post field investigation, the lender will proceed with the loan disbursal. The process can only take hours to complete, and the amount will be credited to your bank account. You’ll also get access to manage these funds online upon the completion of disbursal.