A loan against property is a way to boost funds as per your requirement by pledging your already existing property as collateral. The requirement can be buying a new property, financing your education, etc. You can pledge your existing property and avail of loans against it.
However, the entire process of availing a loan against your property can be challenging. Some banks and NBFCs make this entire process smooth and hustle-free.
There are few basic steps involved in the takeover process of a Loan against property. They are:
1. FILLING OUT THE APPLICATION FORM
This is the first and the foremost step in the process of availing of a loan against your existing property. In this process, you fill-up the application form with your details. Other crucial information about your employment details and income status are also required to be filled in the form. It is also important to fill up the necessary details about the property being pledged. All of this information has to be filled in correctly to ensure smooth and a hustle-free process ahead.
2. DOCUMENTS SUBMISSION
The second step involved submitting all the required and necessary documents to the lender. These documents can include your identity proof, residence proof person, personal income details, employment history, documents of the property being pledged, etc. All of these documents should be verified and attested from the borrower’s end before submitting to the lender
3. VERIFICATION OF DOCUMENTS
There is a verification process taken out from the lender’s end. This is a very important stage as this creates trust and confidence in the borrower. It is also based on this verification process the loan can be sanctioned or rejected. This process can be done online, offline or in-person.
The verification process and the time required to verify the documents varied from lender to lender.
4. SANCTIONED LETTER FROM THE LENDER
After the verification process with the above-mentioned documents, if the process is completed the loan amount is sanctioned to the borrower. Some lenders send in the sanction letter via post to the borrower’s residence or they send in their executives with the approved sanctioned letter
5. EVALUATION OF PROPERTY
This stage is functioned parallelly by the lender. It is one of the most important stages from the lender’s end. Because the entire loan is based on the already existing property it is important to verify the authenticity of the property. This verification is done through legal channels and the report is submitted to the lender.
6. FUND TRANSFER TO THE ACCOUNT
Upon the entire verification process, the loan amount is sanctioned in the borrower’s Loan account. The period from the verification process until the amount transferred in the borrower’s Loan account carries from lender to lender. It can take up to 72 hours to one week for the loan amount to be paid to takeover Lender.
Therefore, the above stages are the steps involved in the takeover process of a loan against a property. The entire process can be challenging. We, at Moneymax help and guide borrowers in this process. For more details, you can write to us at email@example.com and visit www.moneymaxfingrow.com, or call 9092090817.