I live in a co-operative society apartment. Can I obtain loan against my property? Will I require permission or authorisation from the society itself? Will there be any changes to the loan disbursal structure in my case?

Nalanda Bhandari, Chandigarh

Ordinarily, loan against property can
 be obtained against any property that you own. Therefore, you can obtain loan against property even if you stay in a co-operative society apartment. However, there are some differences in obtaining loan against a house that is a part of a co-operative society, and any other apartment or independent house. For one, you will need to inform the bank that placing the house as collateral for the loan has the approval of the housing society of which it is a part. To clarify this matter, along with your loan application, you will be required to submit a permission or authorisation letter from the society which states clearly that you are permitted to place your apartment as collateral for the loan with a specified bank. However, there will be no changes to the loan disbursal structure in your case, even if the house is a part of a co-operative society.

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