As the name suggests, loan against property is all about putting your valuable property at stake with the banks or financial institutions. This is just a kind of guarantee with the banks or financial institutions, that in case, the borrowing party is unable to pay off the taken loan then the concerned bank has full authority to seize the property in question. In a nutshell, the banks get an assurance in the form of the mortgaged property. It is like a mutual deal and agreement between the two parties i.e. borrowing and lending party. It is basically a type of secured loan wherein a property is secured by the relevant financial institution. This fact is also applicable to people who live in co-operative societies provided they obtain a no-objection certificate signed by the concerned society. The scope associated with loan against property is actually wonderful for the simple reason that it has multiple utility. Students can opt to study abroad if they have an option to do so, reconstruction work can be done for homes or there may be wedding expenditures or a purchase of some business equipments. Whenever a customer is putting his property at stake, he must realise that their property is suitable and appropriate to the loan money. Loan against property is not a social stigma like before. On the contrary, its like a prestige issue among the rich class to claim that they put their property at stake and they publicly declare their mortgaged property. You may be now wondering about the formalities associated with the loan against property. It's actually very convenient and involves simple proceedings. All those salaried people can show their proof of identity like voter-id, residence evidences like electricity bill. There is also a requirement to show the passbook that would have your bank statements and involve all the recent transactions of the last six months. You may now be wondering about the formalities associated with the loan against property. In case, you are into business then you might need a certified financial statement which should be at least two years old. Sometimes, situations are unfavourable for the defaulters in case you have a poor credit record because the banks cannot afford to make a loss through the secured loans. Sometimes, credit defaulters with several backlogs in their financial statements are even rejected merely due to a bad credit background.