Any self employed and who is capable of paying Interest can avail a Drop Line Over Draft.

The process involved in availing the Drop Line Over Draft is as follows

• Application

• Processing

• Documentation

• Property Valuation

• Personal discussion

• Sanctioning of the Loan

• Disbursement

Drop Line Over Draft generally is available for 1year to 15 years.

Following are the list of the documents for Loan Against Property:

For Self-Employed:

• Application form with photograph

• Identity proof and Address Proof

• Proof of business existence

• Last 3 years ITR

• Last 3 years P&L and Balance Sheet with Audit Report

• Bank Statements (Last 12months)

• All Loan Sanction Letter (if any)

• Processing fee cheque

• Spouse income

• Property Papers

It mainly depends on your financial profile, credit reputation, and your loan repayment ability. Lenders evaluate these factors to consider what the amount of a Drop Line Over Draft should be. Generally it is up to 10 Cr.

Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.

Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.

The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.

CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Drop Line Over Draft CC is very much important document required for sanctioning your loan.

OC means Occupation Certificate. This certificate issued by the local municipal body to the builder/developer once the said building is complete in all respects and fit for occupation. During Drop Line Over Draft OC is very important document required for sanctioning your loan.

Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.

In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Drop Line Over Draft Share Certificate is very much important document required for sanctioning your loan.

It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.

The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.

In Drop Line Over Draft chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Drop Line Over Draft process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.

The minimum area required in Drop Line Over Draft is 400sqft.It may vary from bank to bank.

In Drop Line Over Draft legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.

In Drop Line Over Draft technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.

NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared.

MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.

LTV - Loan to Value Ratio
It is the percentage of Loan amount that can be provided with respect to the Value of the property.

The case is disbursed when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.

An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.

In this case property is registered with sub-registrar and charge is created against the property in Government records.

Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier.
Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.

Drop Line Over Draft balance transfer is a process where the customer transfers the existing Drop Line Over Draft from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.

The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.

In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.