Leveraging Your Property: Essential Documentation for a Loan Against Property

Loan Against Property (LAP) or mortgage loans are secured loans that help you with a high loan amount (depending on the value of your collateral), flexible loan tenures, and low-interest rates.

The best feature of LAP loans is that the amount comes with unrestricted usage. This makes these loans similar to personal loans; however, you need residential or commercial property as collateral before you apply for a loan against property.

On the other hand, mortgage loans differ from home loans, especially when it comes to usage of funds. Considering home loan vs mortgage, the home loan amount can only be used to either purchase a property or get one constructed. LAP loan amounts can be used for various purposes like home renovation, financial emergencies, important occasions in the family, business or educational purposes, etc.

In this post, we will cover the list of loan-against property documents that you will require to apply for a loan.

Read on!

Common Documents Required by Salaried and Self-Employed to Apply for LAP:

Given below is the list of the loan against property documents required for both salaried individuals and self-employed people:

  • Proof of Identity, which can include your Aadhar Card, Passport, Pan Card, Voter ID Card, etc.
  • Proof of Address, which can include a Passport, Aadhar Card, Voter ID Card, Utility Bills, Financial Bank Statements, Rent Agreement, etc.
  • Proof of Age, which can include an Aadhar Card, Pan Card, Passport, etc.
  • Property Documents like sales deed/copy of Agreement, share certificate, and the latest maintenance bills

Specific Documents Required for Salaried

  • Form 16, Income Tax return for the last three years, along with salary slips of the past six months
  • Bank statements or passbook for the last six months
  • Proof of Job, which can include a job appointment letter, employment certificate, experience certificate, etc.
  • You must also submit a sanction letter and payment track record of existing loans
  • If you have made any investments, you must submit investment proof which includes documents related to shares, mutual funds, fixed deposits, fixed assets, etc.

Specific Documents Required by Self-Employed

  • Proof of Business Existence which includes Registration Copy of Sales, VAT, Excise, or Service Tax
  • Partnership Deed Copy
  • Trade License
  • Certificate of Practice
  • Registration Certificate issued by the Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI)
  • Signature Proof which can include Banker’s Verification, Passport, PAN Card, or Proof of Income
  • Last three years’ Income Tax Returns (ITRs), Income Statement, Profit & Loss Statement, and Balance Sheet
  • Bank Account Statement (previous six months), and Business Continuity Proof (for three years)

Important Points to Remember when Submitting Documents for LAP Approvals

  • There is no need to submit the originals. Instead of presenting the originals for cross-verification purposes, you can simply submit a copy of the self-attested required documents online for application purposes.
  • You can further add property insurance documents and mortgage loan insurance documents (if you have taken one)
  • Few elite financial institutions offer doorstep document collection process, wherein professionals visit your residence to collect the documents

Eligibility Criteria and Documentation Process of Loans Against Property

To apply for loans against property, you must meet the following criteria:

  • Your age should be between 25-75
  • For salaried, you should have stable employment, and for self-employed, you should be in business for a minimum of 3 years
  • You can apply up to 75%-90% of property value as a loan amount
  • You can choose from a flexible loan tenure ranging up to 10 years


Mortgage loans are secured loans that offer low rates of interest, easy tenure, and high amounts, which contribute to their popularity. If you want to opt for unsecured loans, then personal loans are the right choice; however, if you want to maintain a mix of credit, which also builds your credit rating, you must go for a loan against property.

LAP documentation required for LAPs is more extensive and expansive than personal loans.

If you are pledging your property as collateral, and the financial institution is offering you a large amount against it, the documents required should also cover all aspects.

So make sure you gather all the necessary documents meticulously to streamline the loan application process.

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