Secured Loans

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 judgement 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 Deposit
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

This should be an official / certified document which contains the details of your income and tax paid (TDS). Could be either your salary slips for the past 3 months or Form 16 duly filled in and attached to a salary certificate.

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

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

Bank statements

Bank statements for the last 6 months.




Guarantor

Guarantor (optional).





Copy of lease agreement

Copy of lease agreement for LRD (Lease Rental Discounting).


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 and stamp-sized photographs.

Proof of income

An official / certified document which contains the details of your income and tax paid (TDS). Could be either your salary slips for the past 3 months or Form 16 duly filled in and attached to a salary certificate.


Bank statements

Bank statements for the last 6 months.





Verified proof of signature

The lender will require many specimen signatures, verifiable against certified documents that already contain your signature.


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.

Bank statements

Bank statements for the last 6 months.






Guarantor

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.

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.