9 Essential Documents to Make Your Dream Loan Come True
Have a dream? Need a loan to get it going? If you’re looking for a loan on your property, make sure that these 9 documents are authentic and safely in your possession. These documents are at the heart of any property ownership, and form the basis for a loan from institutions such as State Bank of India, Punjab National Bank, HDFC Bank, and Standard Chartered.
Here are the 9 documents that you’ll need
1. Allotment Letter: The allotment letter contains details regarding the agreed price, payment and construction schedule, house plans, delivery date and builder’s liability in case of late completion or problems after possession. It is issued to the buyer on payment of the 15 per cent of the property value to the developer.
2. Lease Deed: A Lease Deed is a document by which an authority, such as the NOIDA Authority, transfers its property, for a certain period on receiving rent thereupon, in favour of other person by keeping ownership of the property with itself. Under lease, no ownership is transferred. Instead, only the rights and liabilities of the property get transferred to the opposite party i.e. the lessee.
3. Possession Certificate: This is a letter handed over by a developer to a customer stating that the property is complete and ready for occupation. This letter also indicates the final dues payable by the customer before the keys are handed over to him.
4. Completion Certificate: Another important document, the Completion Certificate is issued after the developer completes all required formalities. Some of these formalities include getting water and electricity connections for the project and the construction complete according to permissions given in the commencement certificate and the approved plans.
5. Payment Receipt: This one’s self-explanatory.
6. Transfer Memorandum: The authority issues a Transfer Memorandum after the lessee and sub-lessee seek permission from it for leasing the property. A letter is submitted jointly by the lessee and sub-lessee to the authority for transferring the property in sub-lessee’s name. The authority issues the Transfer Memorandum asking the sub-lessee to get the rights transferred in his name.
7. Agreement to Sale: On Rs.100 stamp paper, the lessee and sub-lessee or the buyer and seller express their agreement to sell and purchase the property. The terms and conditions decided between the two parties are mentioned in this instrument.
8. Seller’s Pan Card, Identity Card and Bank Account Number with Branch Address
9. Buyer’s Pan Card, Identity Card, Bank Account Number with Branch Address, Bank Account Statement for Six Months, last three years’ Income Tax Return and Salary Certificate, if employed.
Priyanka Bhatia is the co-founder of One Tree Spaces, a niche wealth creation and real estate business that caters exclusively to women.