What is LOD Full Form in Banking?

With respect to loans, LOD stands for List of Documents or List of Property Documents. While this list can interpret multiple documents, there are certain documents you need to submit to the bank while applying for a loan.

This article contains all you need to know about LOD in loans, how they work, and the key points you must remember while working with LOD. With a clearer understanding of LOD, you’ll not get stuck while applying for the loan, preparing all the documents, or moving the loan from one bank to another.

Why do I need to submit my LOD?

When applying for a loan in Bank, you must normally provide a complete set of documents to establish your identification, financial situation, and creditability. Basically, the bank (or any other financial institution) needs to verify your credentials and make sure you’re an authentic individual who will take complete responsibility for the loan repayment, adhering to all the regulations. The list of documents gives confidence to the financial institutions to provide a loan.

lod full form in banking

What are the Documents for LOD?

During a loan application, banks request that the applicant submit several documents as per their loan policy. It generally includes,

Identity proofs:

  • Passport
  • Driver’s license
  • Voter ID card
  • Aadhaar card (in India)

Address proof:

  • Any utility bills (electricity, water, gas, etc.)
  • Rental agreement
  • Passport
  • Aadhaar card

Income Proof for salaried individuals:

  • Latest salary slips (usually last 3-6 months)
  • Form 16 or Income Tax Returns (usually last 3-6 months)

Income proof for self-employed individuals:

  • Statement of profit and loss (usually last 3-6 months)
  • Balance sheet for the last 2-3 years
  • Income Tax Returns (usually last 3-6 months)
  • Business license or proof of business continuity

Bank Statements:

  • Bank statements for the last 3-6 months

Employment Verification:

  • Appointment letter
  • Employment verification letter from the current employer

Property Documents:

  • Sale agreement or sale deed
  • Title deed
  • Property tax receipts
  • Approved building plan
  • No Objection Certificate from the apartment builder or society

Credit Information:

  • Credit report or credit score (the lender usually obtains this directly from credit bureaus)

Apart from these documents, the bank might ask for other special documents based on the applicant’s profile, loan type, loan amount, etc.

LOD as Letter of Demand

LOD stands for Letter of Demand when referring to loans. An official notification advising a borrower of their default on loan instalments and requesting repayment of the outstanding balance is called a Letter of Demand. A LOD’s primary objective is to inform the borrower of their default and demand prompt payment of the outstanding balance. It serves as the lender’s official notification of the borrower’s default.

Receiving a LOD is an important issue since it implies that the lender is willing to take additional steps to recover the debt. Borrowers should respond quickly to avoid further penalties or legal action.

What should I do if I receive a LOD?

After receiving a LOD, you should carefully review the letter to understand the obligations. If you’re unable to pay the entire balance right away, contact the lender to explore repayment choices or negotiate terms. Seek legal help if necessary to understand their rights and responsibilities.


In different contexts of banking, LOD means differently. The first one, List of Documents is relevant in the initial phase of a loan application. On the other hand, a Letter of Demand is relevant during loan repayment.

This article will give a clear explanation of both to avoid any confusion.

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