Documents Required for Loan Against Property - A Complete Checklist

04 Feb 2022

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Meeting significant expenses like the cost of an overseas education, a wedding, home renovation, or medical expenses can be challenging. Your credit card may not be sufficient for meeting these costs. At times like these, your asset holdings – such as a home - come in handy. You can opt to apply for a loan against these assets. This particular type of loan is known as a mortgage loan.

A mortgage loan is a secured loan that you can avail by providing your asset or property as collateral. Your property remains with the lender as security until the loan amount is entirely repaid. The interest rate offered on such a secured loan is usually lower in comparison to the interest rates of unsecured loans since the lender has lower risk due to the presence of collateral.

This particular blog will help you understand the concept of a mortgage loan against property. It will also give you a fair idea about the application process and the documents required for loan against property. In addition, to this, we have also listed down a few essential things that you should keep a check on while applying for this type of a loan.

What is loan against property?

As the name suggests, a loan against property is a loan that is availed by considering your property as security for loan approval. The property owned can be land, a house, or commercial space.

Opting for a loan against property can prove to be quite beneficial. It is a simple way to make funds available when in need. A loan against property allows you to avail a loan of a higher amount for a longer period, thus offering convivence and ease of loan repayment.

Features and benefits of loan against property

  • Bank of Baroda offers loans against property at competitive interest rates so that you can realise your dreams hassle-free
  • Flexible repayment terms with a maximum tenure of 15 years
  • The maximum loan amount you can avail in metro area INR 10 crores, urban area INR 5 crores & semi urban area INR 3 crores
  • Option to deposit surplus money and save on interest accrued
  • Opting for a loan against property is an excellent way to enhance property utilisation
  • Bank of Baroda also offers a balance transfer facility which allows you to transfer your existing loan from your bank to us seamlessly

What is the eligibility for loan against property?

Before we learn about the various documents required for loan approval, let us first know more about the eligibility criteria for loan against property:

  • The applicant should be the rightful owner of the property offered as security.
  • The minimum age of the applicant should at least be 21 years.
  • The applicant should be a salaried or self-employed with a stable and regular source of income.
  • The Minimum Gross Annual Income (GAI) (average of last -3- years’) (inclusive of co-applicant/s’, whose income is considering for eligibility): Rs. 3 Lacs
  • An applicant must be Salaried/Professional, Self Employed, Business persons, Agriculturists & Others, (whose income is considered for eligibility) should be employed /engaged in business/profession for a minimum period of -3- years.

What are the documents required for loan against property?

Here is the list of documents you must keep in handy when applying for a loan against a property.

Bank loan documents required for salaried individuals:

  • A copy of the duly filled application form
  • Identity proof – PAN card/ Aadhaar card /Driving License/Voter ID/Passport
  • Address proof of both residence and office – Aadhaar Card/Voter ID/ or a copy of any utility bill like electricity bill
  • Salary slips for the latest three months
  • A copy of the for last 3 years Form 16
  • Bank statements for the previous six months reflecting salary obtained and current repayments
  • Proof of ownership – Original Property title deed of the property Offered as security. Other property documents such as
  • Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt.
  • Non-encumbrance letter from Co-op Society (wherever applicable).
  • Permission to create Equitable Mortgage from society / Development Authorities. (wherever applicable)
  • Confirmation of society that Bank’s lien on society records is noted. (wherever applicable) Any other documents specified by Bank’s panel advocate in the legal opinion/ title clearance report.

Documents required for loan approval for self–employed individuals:

  • A copy of the duly filled application form
  • Identify proof – PAN card/ Aadhaar Card
  • Address proof residence and office as well - Aadhaar Card/Voter ID/ Driving license or a copy of any utility bill like electricity bill
  • Income returns filing of the previous three years
  • Income certificate issued by a recognised authority like Tehsildar/ BDO/ SDO
  • Bank account statements of the last six months
  • Proof of ownership – Original Property title deed of the property provided as collateral
  • Receipt of payment for the latest water tax, municipal taxes and other maintenance taxes
  • Non – encumbrance letter issued by your housing society
  • No objection letter from your housing society for mortgage

How to apply for a loan against property?

Applying for a loan against property with the Bank of Baroda is very simple. All you need to do is ensure that your documents for loan application are 100% accurate and in place.

Follow these steps to apply for a loan against property:

  • Fill in the loan application form carefully and attach two recent passport-size photographs of yourself
  • Attach all documents requested
  • Submit the form and documents attached at the nearest Bank of Baroda branch to you and kick start your loan application procedure today

Things to keep in mind when applying for a loan against property:

Here is a list of few quick pointers that you should be aware of when applying for a loan against property:

Property should be free from dispute

Before applying for a loan, make sure that the property you provide as collateral is free from any dispute. Unclear property papers and disputes among property owners for ownership can cause rejection of loan application.

Loan amount should be manageable

No one has a better understanding of the way you manage your own finances apart from you. Therefore, apply for a loan amount that you know you are capable of repaying. The bank does issue the loan based on the provided collateral. However, they expect all borrowers to pay EMIs on time. Default in payments can cause you trouble down the road with the bank.

Choose the right tenure

It is important that you keep your repayment capacity and the interest rate in mind when planning on the tenure. You can use an EMI calculator tool to understand what you will owe the lender based on the interest rate and loan amount. This tool can help you choose the right tenure.

Check for your property value

Make sure to do this before applying for a loan. Bank provides loans consider the realizable value not market value of property only if property is purchased more than 3 years back. In case of purchase within -3- years lower of the registered value or realizable value is being considered. Moreover, you are eligible to avail 60% of value accepted by the Bank as a loan. Hence, work out the finances carefully before making a decision.


Taking a mortgage loan is a big decision and requires careful planning. Bank of Baroda knows how hard you work to make your dreams come true and offers you affordable loans. We also offer easy eligibility criteria, minimal documentation, and quick loan disbursal on approval. You can use our Mortgage loan EMI calculator to understand the EMIs you will be paying each month. This way, you can decide on the right tenure and loan amount and have your money planned out before you apply for the loan. We believe in simplifying the entire process of getting a loan so that you can access the finance you need with minimum hassles.

Apply for a loan against property with Bank of Baroda today!

** Kindly note that the list of documents may vary from Bank to Bank and provided list of documents is an indicative one for the purpose of information. To know more details about documents required from Bank of Baroda kindly visit Bank’s website Loan page.

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