How to Get a Loan for Property Purchase in India 2025

Purchasing a piece of real estate is a hefty expenditure and requires a lot of funds, and not everyone has these funds available. He/she needs a source of funds in order to fulfil the financial requirements. This is where financial institutions come in and provide loans for property purchase. Let’s explore what a loan for property is, how it works, the steps involved in the process of acquiring a loan for property purchase, and more.

What is a Loan for Property Purchase?

A loan for property purchase is a type of loan that financial institutions provide for the purpose of acquiring property. This may include a ready house, a plot of land, a property under construction, or even one intended for investment.

Types of Loans for Property Purchase in India

Depending on the lenders and issuers, there are different types of loans for property available:

• A Standard Home Loan
• A Home Construction Loan
• Land or Plot Loan
• NRI Home Loans
• Investment Property Loans

Benefits of a Loan for Property

Availing a property loan can bring the following benefits:

• Competitive Interest Rates
• Faster Processing and Approval
• Higher Loan Amount Eligibility
• Multiple Usage Options
• Streamlined Documentation

How to get a loan for Property Purchase in India?

Loan for Property Purchase Application Process: 

The application process is different for different financial institutions, but the following are the general steps required to get a loan for Property Purchase in India:

 1. Register on the application portal

Firstly, the customer needs to sign in to the online application portal and obtain their login credentials. These credentials are essential as they will be used to log in every time.  

2. Fill in the provided loan application form

The next step involves filling out the applicable form for the loan scheme chosen. These forms usually involve providing contact and residential information of the customer.

3. Upload all the necessary documents

After filling out the provided form, the customer needs to upload all the scanned copies of all the documents required by the financial institution.

4. Pay the required processing fees

Property loans require a processing fee, usually expressed as a percentage of the amount needed, which needs to be paid by the customer.

5. Get Loan Approval

Once all the loan application formalities are completed, the customer needs to wait to get the loan approval while the bank processes the documents submitted and makes a decision regarding the same.

Loan for Property Purchase Documents Required:

While the documents required vary with the lenders, the following are some generic papers:

• Completed the loan application form

• Passport-sized photographs

• Employer Identity Card (for salaried applicants)

• Proof of identity (PAN, Aadhaar, Passport, Voter ID, etc.)

• Proof of residence (Aadhaar, Passport, Utility bills, etc.)

• Proof of business address (for self-employed individuals)

• Last 6 months’ Bank Account Statement/Passbook

• Income proof:

• Salaried: Latest salary slips/Form 16/ITR

• Self-employed: ITR for last 2–3 years, balance sheet, profit & loss account

• Personal Assets & Liabilities Statement

• Property-related documents (sale deed, title deed, property tax receipts, NOC, etc.)

Loan for Property Purchase Eligibility Criteria:

While the documents required vary with the lenders, the following are the documents that are usually required in order to avail the loan:

• Should be an Indian Resident 
• Applicant’s age limit: 18 - 65 years (varies by lender)
• Both salaried and self-employed individuals are eligible.
• A CIBIL score of 700 or above for better approval chances.
• Applicants must own the property being mortgaged, with a clear title and valid documentation.

Loan for Property vs Loan against Property

One might think that both of these terms have the same meaning, but these loans are contrasting in nature. Loan Against Property (LAP) is a loan under which a piece of property is kept as collateral with the bank, with the purpose of availing funds. In contrast, loans for property are loans that are availed from financial institutions with the goal of acquiring property.

My Mudra Tip

With My Mudra, not only can you find the right loan, but we also help you understand which add-ons are truly worth it. This helps you make informed choices while keeping your financial well-being intact.

Summing Up

With the various institutions providing such loans, comparing the interest rates and other benefits is essential. Also, consider simplified online procedures and personalised options to make a smarter choice. My Mudra aims not just to help you get the right loan, but also the right protection. Speak to our team today. Secure your loan. Secure your future.