How to Get Loan on Property Documents In India 2021 – Peasant people who depend only on agriculture. Sometimes money is not needed due to necessary works and sometimes due to crop failure, too much loss has to be suffered. Due to the variety of tasks of the farmers, it is very difficult to adjust the money when the money is needed. In such a situation, farmers can get loan on their Property.
Many people belonging to the farmer family borrow money from here and there. But sometimes the loan money is not managed. In such a situation, taking a loan on your Property is considered a better solution. Because after taking the loan, gradually that loan can be paid as monthly premium and the interest rate of the loan taken by the bank is also very low.
However, on taking a loan by banks, many types of documents and legal action have to be completed and some processing charges are also collected from you while taking the loan.
Today we will tell you How to Get Loan on Property Documents In India 2021 through this article ? What are the documents required to take loan against Property? What will be the interest rate on taking loan against Property? What is Property loan? Will give information about etc.
What is Property loan?
If a person is a farmer and wants to take a loan by keeping his Property as security. So he can apply for this loan from any bank. Bank in which his account is opened. Loan taken on Property is called Property loan. During which the bank takes some of the Property papers as security.
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If due to any reason you are not able to repay that loan. Then the bank seizes your property. when you take a loan. So its information is given in the application form. If the loan is not repaid for any reason, the bank will be entitled to seize the property. The bank provides money to the farmers at very low interest. Which has to be paid back in the form of monthly installment.
Under Property loan , the farmer has to mortgage his Property with the bank . This does not mean that the farmer cannot cultivate that Property. After taking the land loan, the farmer can easily cultivate his land. If he does not pay the loan. So after the bank seizes that land, that farmer cannot cultivate that land.
How to Get loan on Property?
Required criteria for taking loan against Property?
When any person get loan on his Property. So for that some criteria are told by the bank according to the guidelines of RBI. On the basis of those criteria, the person gets the loan, which is as follows.
- As per RBI guidelines, the person applying for the loan should be minimum 24 years of age and the maximum age of the person should be less than 65 years. Only then the person will be considered eligible to take a loan on the Property.
- To get loan on Property, it is necessary for that person to have own property like land plot etc. Because the bank only keeps your Property papers as a mortgage. Property documents that the bank keeps with them can be of many types. Such as Jamabandi of land, agreement of plot, registry, mutation copy etc.
- It is necessary for the loan applicant to have any other income other than agriculture. Because according to the RBI guideline, it has been told that there can be losses in agriculture many times. In such a situation, it is necessary for the applicant to have another income to cover the loan. Loans are approved only on the basis of income other than agriculture.
- If the Property on which loan is being taken. That Property contains the name of more than one person. So it is necessary to sign the documents and application form of all those persons.
- To get loan on Property, if a person is an income tax payer. So while taking a loan, you must provide income tax information.
- You can use the loan money received on the Property only for certain works. Like to build a house on the land, etc., to build a sports stadium on the land, etc.
What is the maximum loan that can be taken on Property?
According to the guidelines of Reserve Bank of India, no bank can give loan on land more than 90% of the market value of the Property. What is the value of the land?
90% of it is given as loan. The value of the Property depends on the area. The loan is approached on the basis of the value of the Property.
It is illegal to give more than 90% of the loan as per the guidelines of the Reserve Bank. For example, if the value of Property of a person is 10000000 rupees. So he can get an amount of ₹ 9000000 by the bank as a loan.
What is the interest rate on Property loan?
If you take loan on Property. So a fixed interest rate is provided by the bank. Interest is charged on your loan amount based on the same interest rate. There is also a difference in the interest rate according to each bank’s own rules.
Along with this, depending on the bank loan amount and the repayment period, the interest rate is also determined in different ways. when you take a loan. So who decides any bank interest rate based on its tenure.
To find out the interest rate for taking loan on Property, check the bank from which you want to take the loan. You can find out by visiting the branch of that bank. Apart from this, interest rate information can also be obtained on the helpline number of that bank.
Information is also available on the official website of that bank. Apart from this, if we talk about the minimum interest rate, then the interest rate of State Bank of India is 8.5%. Which is very less as compared to other banks. And the lowest interest rate of Property loan is considered.
What is the maximum tenure one can get for loan against Property?
After taking a loan on Property, the loan repayment period varies from bank to bank. But all the criteria are fulfilled as per the guidelines of Reserve Bank of India.
So Rohan’s payout period of maximum 20 years can be achieved. But not all applicants get such a long time. Because all types of documents are required for these and the loan tenure is determined based on your credit score.
Documents required for geting loan on Property?
If you want to get loan on Property. So for that you have to upload many types of documents along with the loan application form given by the bank. Apart from this, many are also necessary as security. which is as follows.
- Passport size photo
- your identity card
- Address proof of the applicant
- Required documents related to Property
- loan application form
The bank takes from you the necessary documents related to the Property as security.
How to apply for loan against Property?
Taking a loan on Property is not very difficult, just here many types of steps have to be followed to take loan on land. On that basis, you can get the loan approved on the land and get it transferred to your bank account.
Now, to get this loan, which stage has to be passed, below we have told step by step, by following which you can easily get loan on Property and fulfill your needs, then let’s know. –
- First of all, you have to collect all your necessary documents to take loan against Property. Collect the above mentioned documents.
- The Property on which the loan is being taken. The names of all the children in that land are attached. Collect the documents of those persons also.
- Now go to your nearest bank branch in which you already have an account. Go there and get complete information about the loan.
- After getting complete information about the loan by the bank employee, the bank employee gives you an application form. That form has to be filled completely.
- After this there is a sign mark at the bottom of that application form. There the signatures of all those persons whose names are there in that land. The Property on which the loan is being taken.
- After the application form is completely filled and signed, all the documents have to be attached with the application form.
- Submit the documents and application form to the bank employee. The bank employee inspects the application form and all those documents.
- After the bank employee inspects the document, he submits the online form and reviews your loan for approval.
- After applying the loan application form in the review, that loan is passed by the Reserve Bank of India and the head employees of that bank.
- It can take around a week or up to 10 days for a loan to be cleared.
- After the loan is approved, the loan amount is transferred to your account by the bank.
All information in short 2021
Mainly, those who are farmers, their Property is everything because they have no other means of income, but whatever money they get from the crops grown on their land, they do the maintenance of the house and other works. .
But it becomes difficult for any farmer to build a house or get a daughter married because the amount of money is not collected from the crop grown on the Property, so that he is not able to meet his good house, daughter’s marriage, or other needs.
Then only this option remains in front of him to get loan on Property, but how to get loan on Property, what should be the qualification for this. As there is no information, due to which he does not get the benefit of it, just keeping this in mind, today we have explained this important information in detail through this post of ours.
I hope that you will understand the given information, and you must have got proper information, if you face any problem in geting loan on Property, then you can ask us by commenting.