Categories of borrowers

Categories of borrowers

Personal loans are available for different categories of borrowers who are people in different walks of life. This makes it a route that is quite easy to access and hence also represents a way in which all categories of borrowers can take care of their personal finances. The presence of this route increases the choice for all categories of borrowers and hence this has to be considered. The loan against property is available for

* Salaried employees
* Professionals
* Self-employed people
* Other income tax assessees

There is a minimum amount of salary that has to be earned by those who are employed and also a minimum limit of annual income earned by the professionals and other self-employed people. This condition is there to ensure that the people who can afford to repay the loans against property can only make use of the facility.

Documents required

There are several documents that are required to be produced by the borrower for taking a loan against property. These documents are important because they enable the bank to understand the financial position of the borrower and based upon the conditions that are present here the exact amount of the loan will be available.

For a salaried individual, there are two main documents that are required and which will complete the entire process of the documentation. These are:

* Latest salary slip to know the current earnings.
* Form 16 for the purpose of knowing the total benefits for the year.

When it comes to professionals and self-employed persons, there are a whole lot of documents that will be required to ensure that the loan against property is passed and made available. These include:

* Income tax returns for the past 3 years. This kind of long time period documents are required to check for the consistency and stability of the earnings.
* Latest income tax assessment order for specific loans that are slightly larger in size.
* Last 6 months’ bank statements. These have to be from the main bank of the borrower.

In addition, there are some other common documents related to the property that are also required to be produced.

* Original title deed of the property that is being offered for the loan against property.
* Receipt of the latest taxes that have been paid like municipal tax, water tax and so on.
* Non-encumbrance letter from the society.
* Permission to create a mortgage from the society.