How to apply for an overdraft loan against property?

Here are the steps to apply for an overdraft loan against property with the banks or Non-banking Financial Companies (NBFCs):

• First, identify the property you want to pledge as collateral. This is usually your home or commercial property. Ensure you have clear title deeds.
• Approach banks or NBFCs that offer overdraft loans against property. Compare interest rates, terms and conditions.
• The loan provider will evaluate eligibility based on factors such as property value, location, income, credit score, and repayment capacity.
• Submit the completed application form along with Know Your Customer (KYC) documents such as ID/address proof, property papers, income statements, etc., as required.
• The financial institution will get the property valued by an authorised valuer to ascertain the market price and loan amount you can get.
• If your application is approved, the loan provider will ask you to submit the property's original title deeds and sign a mortgage agreement pledging it as security.
• The agreement contains loan details like interest rate, tenure, limits, repayment schedule, conditions for default, etc. Read it carefully before signing.
• Once the mortgage is created and you complete documentation formalities, the loan provider disburses the overdraft limit into your account.
• You can then start withdrawing from the sanctioned limit as per your needs by issuing checks or withdrawal slips.