How to borrow Loan Against Lal Dora Property in Delhi NCR ?

In view of the increasing demand for Loan Against Lal Dora Property, there are some HFCs or NBFCs which have started providing Mortgage Loan Against Lal Dora Property or Loan on Lal Dora Property with certain rules and conditions.

What is Lal Dora Property / Area ?

Lal Dora land is one of the most important and historic land pieces of Delhi-NCR. The term “Lal Dora” was first used in 1908 to denote a piece of land that was part of the village’s “Abadi / Population”. In those days, the part of the village which was used for residential purposes was demarcated with red thread around them. This demarcated land is known as “Lal Dora” land. The “Lal Dora” land is to be used for the support of livestock and for non-agricultural purposes only.

There are more than 360 villages in Delhi, which are classified as Lal Dora villages. These villages have been given several types of relaxation in the rules related to the laws and construction norms related to the Delhi Municipal Act 1963. As a result, a number of problems have arisen in the “Lal Dora” area, such as rampant illegal construction, gross commercialization, poor infrastructure, construction beyond permissible limits, illegal addition of multiple floors.

“Lal Dora” certificate

This certificate is used to establish that a person is the legal owner of a particular property / land in the “Abadi / Populated” area of ​​a village (i.e. the area demarcated for residence). This certificate is one of the most important documents for the purpose of obtaining a water / electricity connection in a village. The “Lal Dora” certificate can be obtained from the office of the Sub Divisional Magistrate under whose jurisdiction one resides.

Documents required to get “Lal Dora” certificate –

1. Application form duly filled by the applicant.
2. Form containing complete details of Land, Khasra Number and Owner’s Name.
3. Details of land, details of Khasra land, Name of landowner to request for Lal Dora certificate
4. Affidavit stating the purpose.
5. Sijra of the ground / property.
6. Copy of ration card
7. Copy of Khasra-Khatauni.

Criteria for obtaining Lal Dora certificate

The duly filled application is first sent to the Tehsildar’s office for verification. The office of the Tehsildar verifies the application and prepares a report on it. If the application details are verified by the Tehsildar, the applicant is issued a “Lal Dora” certificate. This entire process takes about 21 working days.

Mortgage Loan Against Lal Dora Property

If you have land in Lal Dora Area then it is very difficult for you to take a loan on such property. Most Banks and large HFCs do not offer Mortgage Loan Against Lal Dora Property or Loan on Lal Dora Property in Delhi. Banks usually have very stringent policies regarding loans on property and even a slight deviation from their policy can cause banks to reject your mortgage loan application.

The main reason for Banks not providing Loan Against Lal Dora property in Delhi is the lack of municipal approved maps. If you want to get a loan on property, then you must have a property with an approved map and constructed property as per approved map. Properties in Lal Dora villages are exempted from laws and construction norms under the Delhi Municipal Act, 1963. As a result, problems like illegal construction, gross commercialization, poor infrastructure, etc. have increased considerably in Lal Dora villages. These developments do not follow any guidelines or rules.

The basic premise behind a loan on property is to make a good mortgage. Due to the reasons mentioned above, banks are unable to create a full mortgage and a clear title credit score range for application for Mortgage Loan Against Lal Dora property. Therefore, most Banks and HFCs reject mortgage loan applications against Lal Dora Property. But, this is not the end of the root for applicants residing in these villages. To meet the increasing demand for Mortgage loans in the Lal Dora region, some HFCs or NBFCs have come forward to offer Mortgage Loan Against Lal Dora Property with certain special terms and conditions.

Required Documents for Loan Against Lal Dora Property

Loan Against Lal Dora Property : Required Documents for Salaried Main Applicant  Photo Pan Card Copy Aadhar Copy Current Residence Proof Employee Id Copy Latest 3 Months Slip Latest 6 Months Bank Statement Salary Account Latest One Year Bank Statement of Saving Account Latest 2 Years Form-16, Part-A&B or ITR with Financial Running Loan Account Statement Processing Fee Cheque Co-Applicant Photo Pan Card Copy Aadhar Copy Relationship Proof with Main Applicant Property Documents Minimum 13 Years ownership transfer chain Copy of Lal Dora Certificate

Mortgage Loan Against Lal Dora Property : Required Documents for Self Employee Business Owner Main Applicant  Photo Pan Card Copy Aadhar Copy Current Residence Proof Business Registration and Business Address Proof Latest 12 Months GST Return Copy Latest 6 Months Bank Statement Current Account Latest One Year Bank Statement of Saving Account Latest 3 Years ITR with Financial Running Loan Account Statement Processing Fee Cheque Co-Applicant Photo Pan Card Copy Aadhar Copy Relationship Proof with Main Applicant Property Documents Minimum 13 Years ownership transfer chain Copy of Lal Dora Certificate

Loan Against Lal Dora Property : Required Documents for Self Employee Professional Main Applicant  Photo Pan Card Copy Aadhar Copy Current Residence Proof Professional Education Proof Business Registration and Business Address Proof Latest 6 Months Bank Statement Current Account Latest One Year Bank Statement of Saving Account Latest 2 Years ITR with Financial Running Loan Account Statement Processing Fee Cheque Co-Applicant Photo Pan Card Copy Aadhar Copy Relationship Proof with Main Applicant Property Documents Minimum 13 Years ownership transfer chain Copy of Lal Dora Certificate