Secured Loan

SECURED LOAN:

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower, for example, foreclosure of a home. From the creditor’s perspective, this is a category of debt in which a lender has been granted a portion of the bundle of rights to a specified property. If the sale of the collateral does not raise enough money to pay off the debt, the creditor can often obtain a deficiency judgment against the borrower for the remaining amount.

A home mortgage is a very common type of secured loan, one using real estate as collateral. The lender is more confident you will repay the loan in a timely fashion because you could lose the collateral – your home! – if you fail to make payments.

Assets That Can Secure a Personal Loan

Not all secured loans are structured the same way.

A Home

An Automobile

Other Money: Savings, certificates of Deposits   

Valuables                                                               

Documents required:- (All copies of documents should be self-attested by the customer)

You will, of course, need to submit a bunch of documents to the lender or bank, so that they can establish your identity, address, and other details. Documents you will require for different kinds of secured loans are:

Mortgage loan:

Proof of identity – This should be an official document which contains your name and photograph. Could be either your driving license, passport, voter’s ID, PAN card, Employee ID (if the company is registered), etc.

Proof of age – Should be a verifiable document that determines your age, such as a birth certificate, passport, voter’s ID, etc.

Proof of income 

-For Salaried Individual: 3 month salary slip, Form 16 and bank statement.

-For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant.

-For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant.

Proof of residence – This should also be a certified document that verifies your residential address in the eyes of the law. Could be either your phone/internet bill, rental agreement, bank account statement, etc.

Original property documents of the property that is being pledged as collateral against the loan.

Bank statements for the last 6 months.

Guarantor (optional).

 Car loan:

 Proof of age – Should be a verifiable document that determines your age, such as a birth certificate, passport, voter’s ID, etc.

Duly filled in application form. This is available from the bank itself.

Proof of identity – This should be an official document which contains your name and photograph. Could be either your driving license, passport, voter’s ID, PAN card, Employee ID (if the company is registered), etc.

Passport sized photographs.

Proof of income 

-For Salaried Individual: 3 month salary slip, Form 16 and bank statement.

-For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant.

-For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant.

Bank statements for the last 6 months.

Proforma Invoice of the Vehicle to be purchased/Quotation.

Proof of residence – A certified document that verifies your residential address in the eyes of the law. Could be either your phone/internet bill, rental agreement, bank account statement.

 Home loan:

 Proof of residence – A certified document that verifies your residential address in the eyes of the law. Could be either your phone/internet bill, rental agreement, bank account statement.

Proof of identity – This should be an official document which contains your name and photograph. Could be either your driving license, passport, voter’s ID, PAN card, Employee ID (if the company is registered), etc.

Property Documents – Sale deed, Katha, transfer of ownership

Proof of income 

-For Salaried Individual: 3 month salary slip, Form 16 and bank statement.

-For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant.

-For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant.

Bank statements for the last 6 months.

Guarantor (optional).

 Business loan:

 Company profile and product range – a description of your company, the products or services it exchanges for money, its managers and functions.

Promoter profile.

Audited balance sheets for the last 3 years along with Tax Audit Reports if any.

Proof of address –Certificate of Incorporation/ Rental Agreement/ Lease deed.

Proof of identity – Certificate of Incorporation, MOA/AOA.