List of Documents Required for Loan Against Property in India

Loan Against Property

Real estate properties don’t just offer exponential returns but can save your day during financial emergencies. Did you know that you can borrow a reasonable sum using Loan Against Property (LAP)? LAP is a type of secured loan where borrowers can pledge their property as collateral to obtain funds from the lender. LAP is a popular choice for borrowing money in India.

One of the biggest reasons for this is the low loan against property interest rates as compared to unsecured loans. Also, you can use the amount for various purposes, including business expansion, education, or medical emergencies. However, some essential documents must be submitted to vail of a LAP. Let’s dive deeper into the document list needed for LAP.

List of documents for loan against property

Here are some of the most critical loan against property documents required to process your loan application for a LAP.

  • Identity proof

Borrowers need to submit government-issued identity proof, such as Aadhaar Card, PAN Card, Voter ID, or Passport. The identity proof should have the borrower’s photograph and signature.

  • Address proof

Borrowers must also submit a government-issued address proof, such as Aadhaar Card, Passport, or utility bills. The address proof should have the borrower’s current address.

  • Property papers 

Since the property is pledged as collateral for the loan, borrowers need to submit the original property papers, including the sale deed, title deed, and possession letter. The property should be free from burdens and in the borrower’s name.

  • Income proof

Borrowers need to submit income proof to demonstrate their ability to repay the loan. The income proof can include salary slips, bank statements, income tax returns, or audited financial statements. In addition, self-employed borrowers may need to submit additional documents, such as business proof, GST registration, or balance sheets.

  • Proof of employment 

Borrowers need to submit employment proof, such as a job offer letter, employment contract, or company ID card. Self-employed borrowers may need to submit business registration documents, such as GST registration or partnership deed.

  • Passport-size photographs

Borrowers need to submit passport-size photographs for loan processing and documentation purposes.

  • Property valuation report 

Lenders may require a property valuation report to determine the property’s market value and eligibility for a loan against property. Borrowers may need to pay a fee for the valuation report.

  • NOC from builder

If the property is in a society or builder complex, borrowers need to obtain a No Objection Certificate (NOC) from the society or builder to pledge the property as collateral.

  • Power of attorney

In some cases, lenders may require borrowers to give a Power of Attorney (POA) in favour of the lender or an authorised representative. The POA authorises the lender to take legal action in case of default or non-payment.

Benefits of LAP in India

Now that we have a good idea about the documents required for LAP let’s dive into the key benefits of a LAP in India. 

  • Lower interest rates

LAP has lower interest rates than other unsecured loans, such as personal loans and credit cards, as the lender has the security of the borrower’s property.

  • Longer loan term

LAP comes with longer repayment tenures of up to 15-20 years, making it easier for borrowers to manage their monthly cash flows.

  • Higher loan amount 

LAP allows borrowers to avail of high loan amounts based on the value of their property, making it an attractive option for those who need a large amount of funds.

  • Multiple end-use

Unlike other loans, LAP can be used for various purposes, such as business expansion, education, medical expenses, or even to fund a wedding.

  • Tax benefits

The interest paid on LAP is eligible for tax deductions under Section 24 of the Income Tax Act, making it a tax-efficient way to borrow funds.


A loan against property is one of the best ways to borrow funds from financial institutions in India. However, you must have all the required documents before applying for the loan. A loan against property has numerous benefits, including low-interest rates, longer repayment terms, higher loan amounts, tax benefits, etc. Apply for a LAP loan with Fullerton India today!

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