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Important loan against property documents checklist

2 Mins 24 Feb 2022 0 COMMENT


A loan against property, or mortgage loan, is a type of loan taken by pledging one’s property. This property can be of any kind - a residential building, a commercial space, or a plot and acts as collateral.

The first and foremost requirement to borrow this type of loan is a property registered under your name. Lenders evaluate the market value of your asset before sanctioning the loan. Generally, the lender approves a particular percentage of the market value of the property as a loan.

Various reasons to borrow a loan against property

A loan against property is a popular choice among borrowers because of several reasons. The two key advantages are instant availability of funds and the freedom to use the funds wherever you require. For example, you can use a housing loan to purchase a home and a home improvement loan for its renovation. However, the loan amount in a mortgage loan is free from end-use restrictions.

Some of the common ways to utilize these funds include:

  • Fund higher education
  • Host a grand wedding
  • Clear bills for medical emergencies
  • Pay downpayment for a high-value purchase
  • Consolidate an existing debt
  • Expand an existing business
  • Travel overseas for business
  • Purchase stock inventory
  • Invest in marketing and promotion strategies

A loan against property comes with many benefits, such as minimal documentation, longer tenure, balance transfer facility, and more.

Documents required for loan against property

A mortgage loan is available for both salaried professionals and self-employed individuals. When you apply for a loan against property, the documents required are as follows:

Proof of Identity

  • PAN Card
  • Passport
  • Voter ID
  • Aadhaar Card
  • Driving License
  • Any other GOI issued Photo ID

Proof of Address

  • Aadhaar Card
  • Voter ID
  • GOI issued Photo ID
  • Electricity Bill
  • Gas Bill
  • Telephone Bill
  • Property Tax Receipt

Proof of Income

  • For salaried individuals - salary slips of last 6 months
  • For self-employed applicants - computation of income, P&L, Balance sheet sealed and signed by a reputed CA
  • Bank account statements
  • Income tax returns
  • Form 16

Property documents

  • Title deeds
  • No encumbrance documents.

Additional documents

  • Recent passport size photographs of applicants
  • Appointment letter, if you haven’t been working in your current company for more than a year
  • In case of an ongoing loan, bank account statements of the past 6 months showcasing loan repayments

Every applicant must also have a duly filled and signed application form to apply for a loan against property. If the property is owned jointly, each owner should be a co-applicant and submit the documents required for a loan against property.

Additional Read: Questions About Loan Against Property Answered

Eligibility criteria for loan against property

The eligibility requirements for a loan against property are basic. Applicants must fulfill the following:

  • Age between 25 and 65 years
  • Indian citizenship
  • Work experience/Business
  • Income

The eligible ages can vary from one lender to another. Moreover, if you are a self-employed applicant, most banks and NBFCs prefer that your business is generating a steady flow of income for at least 6 months to 1 year.

Additional Read: How to Get Out of a Debt Trap


A mortgage loan provides financial support to businesses of all sizes, small, medium, and large. Once you submit all the documents required for a loan against property, the lender assesses the loan amount based on your financials and the value of the property you are offering as collateral. The loan amount can range between Rs. 10 lakh and Rs. 5 crores. In certain cases, the loan amount can even go beyond Rs. 5 crores. The loan generally has a longer tenure of up to 15 years, thereby reducing EMI amounts.


 ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd. for loan against property related services & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc.