The Khata is important for getting any document related to the construction or sale of a property sanctioned. This document allows you to obtain a trade licence, building licence, building plan approval and loans from financial institutions. It is also necessary when applying for a water or electricity connection in Bangalore with the Bruhat Bengaluru Mahanagara Palike (BBMP) or for selling a property.

Khata Extract is an extract taken from the assessment register of the BBMP giving details of the property concerned, such as the name of the property, its size, the use to which it is put (commercial purpose, residential), and its annual value, fixed when it was last assessed.

Khata extract is required to

a. apply for obtaining a trade license, or
b. to buy a property.

There are various services offered under Sakala, including obtaining a Khata for your Property. The Sakala website mentions the list of documents required for submitting your Khata registration application:

1. Application in prescribed form
2. Attested copy of the title deed
3. Copy of Encumbrance Certificate (in form 15) for the past 10 years
4. Conversion Certificate of the Land Conversion of the issued by the competent authority
5. Survey sketch / Tippani copies
6. Copies of the NOC from Town Planning Authority (BDA) for bifurcation of land (in case of land measurements less than the measurements in land conversion certificate)

What is a deed? A deed is a formal document that defines how a property is owned, transferred, and inherited. It often includes information on how much land an individual has or their rights on that land. A title deed is a written contract decided upon by the buyer and seller during the transfer of property. The Khata document is an assessment of the property to facilitate the payment of taxes and also for maintaining records in the municipal and revenue registry, whereas, a title deed is the proof of ownership of property.

Mother deed acts as the key legal document as it the sign of the evidence ownership of a property. Ownership of property changes hands through a series of transactions. It is very important to trace the ownership of a property, especially when it is either being purchased or is being offered as a security. Mother deed acts as the main legal document as evidence ownership of property. It also acts as the main document for further sale by the buyer as it establishes proof of his ownership.

Mother deed is an important document in a property transaction. This is the document that traces the origin of property as well as all other relevant conveyance deeds. It is the main document to determine ownership of a property. If such documents are not made available, certified copies have to be obtained from the registering authorities. Earlier documents are called mother or parent documents.

An Encumbrance Certificate (EC) is a document used as evidence of possession of a property. The document is needed while purchasing or selling a property or when applying for a home loan or loan against property to confirm that the particular property is free of any economic or legal liabilities.

Importance of Obtaining an Encumbrance Certificate

1. Encumbrance certificate is a vital document for buying any land or property in India as it is an evidence of ownership title. Hence transferring of property requires an EC.
2. Encumbrance certificate must be furnished when applying for a loan against the property in any banks or financial institutions as it confirms that the property is free from any legal liabilities.
3. EC is an important document to get mutation of property (Khata Registration / Khata Transfer) done.
4. This certificate requires updating the land tax records if the property or land tax is not paid for more than three years.
5. The encumbrance certificate is an essential document to withdraw for a property purchase or house construction.

A mortgage loan on B khata is a secured loan that allows you to avail funds by providing an immovable asset, such as a house or commercial property, as collateral to the lender. The lender keeps the asset until you repay the loan.

All private banks will provide loans with 8.5% ROI for B Khata Property.

Mortgage loan are of 3 types

1. Home loan
2. Commercial property loan
3. Loan against property

A commercial property loan allows you to avail high-value funding by mortgaging commercial real estate you own. The commercial property the one you use for your business or any other profit-generating purpose.

Eligibility and Documents required

To get a loan against commercial property, you must be an Indian national possessing a steady source of income. You must belong to the eligible age bracket (varies for salaried and self-employed individuals), and you must own a commercial property that is free of legal concerns. It is ideal to have a CIBIL score of 750 or more.

The documents you may need include:

• Proof your identity and residence: PAN card/ Voter’s ID/ Driving License/ Passport
• Proof of income: Bank account statements, Income Tax Returns
• Property-related: Buyer agreement/ title deeds (if applicable),Mother Deed ,EC, Khata and Khata extract, Plan copy
• Other documents: In case of Balance Transfer – Existing Loan repayment track record (RTR), LOD (List of Document) for documents submitted to existing bank

A construction loan on B khata is a loan given exclusively for the purpose of constructing a house on a piece of land already owned by the borrower.
The biggest advantage of a construction loan on B khata is the lower interest rate and longer tenure. Currently the home construction loans have interest rates ranging from 7%.

The loan can be taken only if the property is under the borrower’s name. That is the borrower needs to be co-owner of a property for him/her to be eligible for the construction loan on B khata. In such cases the son or daughter cannot take the loan on behalf of their parents.

The whole amount required for the construction cannot be obtained as banks only provide loans to a maximum of 80% to 85% of the construction cost.
The funds will be released in time intervals that is in a phase after an officer from the bank has inspected the construction site to verify if the construction is going according to plan. So, there will be an oversight and the if the funds are not released on time the construction will be held up.

The composite loan on B khata which is a plot come construction loan. In which a loan can be sanctioned to purchase a plot for the construction of the house. The construction should take place within specific years from the date of the loan sanctioned. If fails to construct a home on B khata property within specific years then this composite loan gets converted into a commercial loan at a higher rate of interest. Hence, it is a combination of plot loan and construction loan so it covers the cost of the plot and construction cost up to 70-80% depending upon of CIBIL score.

In the case of composite loans on B khata property, the bank will disburse the amount in tranches or instalments. The first instalment will be disbursed for land purchase and the subsequent one will be for house construction on the basis of your construction plans and progress.

The composite home loan is provided by banks to the individuals who want to buy a piece of land and construct a house. This kind of loan is given to finance the cost against the land and construction of B khata property on that particular land. The composite Home loan on B khata property is given to lenders not only for the land, but also for construction of house within a particular time frame.
A composite home loan is different from a regular plot/land or home construction loan. It is a combination of land and construction loans.

• We provide an extensive range of home and non-home loan products that include – home purchase loan, composite loan and mortgage loan.
• We help you to choose the best scheme at flexible interest rates.
• Our customer support team will always be there to provide details of the loan process
• Our professionals work on best quality information system and network to ensure on-time work.

Land Purchase loan / site purchase loan on B khata is a unique financing for purchasing a plot of land for residential construction. While owning a ready to move home does have its perks, customising your home to your needs can be infinitely more satisfying.

These land loan / site purchase loan is different from a home loan because home loan are offered to buy a ready to move in property. But, a loan for sit purchase covers every aspect of the purpose effectively. This loan can be illustrated in 2 ways: – Plan to buy a resale plot, Plan to purchase a piece of land through direct allotment

Home Loan / mortgage loan / personal loan Balance Transfer (BT) on B khata Facility basically enables a borrower to transfer their current loan obligations from one lender to another. Typically, a borrower home opts for a Home Loan / mortgage loan / personal loan Balance Transfer facility when some other lender is offering a better rate of interest to them on the very same loan he/she is currently honouring the terms of with their bank.

Transfer a home loan / mortgage loan / personal loan when the outstanding loan amount is higher. Like any other EMI, a home loan EMI constitutes the principal amount and the interest amount. As the loan matures, the principal amount gradually gets paid, thus reducing the outstanding loan amount.

Documents required for Balance Transfer of B Khata.

• Consent Letter
• NOC (No Objection Certificate)
• Loan Agreement
• Foreclosure Letter
• Home Loan Statement
• Property Documents

KYC Documents

• Identification Proof
• Pan Card
• Aadhar Card
• Driving License
• Voter’s ID Card
• An employment ID card
• Passport

Financial Documents (For Salaried employee)

• Form 16 from your employer
• Latest Salary slips
• Last six months bank statements of your salary account
• Existing Loan repayment track record (RTR)
• LOD (List of Document) for documents submitted to existing bank

Financial Documents (For Self employee)

• 3 years IT return duly acknowledged by IT authorities with computation
• 1 years 26 AS
• Last 3 years Balance Sheet and Profit & Loss A/c statements, with Annexures/Schedules
• (Balance sheet and P&L should be of both the individual and the business entity and
attested by a CA)
• Last six months bank statements of your salary account
• Existing Loan repayment track record (RTR)
• LOD (List of Document) for documents submitted to existing bank

Property related documents for home loan / mortgage loan transfer

• Property purchase documents or documents to prove ownership of the property.
• NOC from the property developer or housing society
• Registration certificate
• Stamp duty papers and payment receipt

A residential plot loan on B khata is a secured loan that is provided against the security of land funded by the bank’s loan. Plots loans for B khata are given for residential as well as commercial purpose. Residential plot loan on B khata in Bangalore is taken by the borrower from the bank against the land that is brought on the part by the borrower giving the bank a conditional ownership of the land. It means, if the borrower fails to repay the loan amount, the bank has the right to sell the land to retrieve the loan amount.

A plot loan on B khata is a type of home loan that allows getting a loan for the residential plot. Plots can be purchased by direct allotment in real estate housing societies/projects or directly from development authorities.

List of documents that will be needed for Residential plot loan on B Khata

• Proof your identity and residence: PAN card/ Voter’s ID/ Driving License/ Passport.
• Proof of income: Bank account statements, Income Tax Returns
• Property-related: Buyer agreement/ title deeds (if applicable),Mother Deed, EC, Khata and Khata extract, Plan copy
• Other documents: In case of Balance Transfer – Existing Loan repayment track record (RTR), LOD (List of Document) for documents submitted to existing bank.

✅ Yes, You Can — But With Conditions

Taking a home loan does not prevent you from converting B Khata to A Khata. However, conversion depends entirely on:

1. Property eligibility for regularisation
2. Compliance with municipal rules
3. Payment of penalties and betterment charges
4. Absence of major legal violations

The presence of a loan does not block conversion. However, since the property is mortgaged to the bank, you may need:

• Bank’s No Objection Certificate (NOC)
• Updated records reflecting bank charge

B Khata can generally be converted to A Khata if:

• The property is in an approved layout
• Land use matches zoning regulations
• No major building violations exist
• All property taxes are cleared
• Betterment charges are paid

If the property is on revenue land or in a completely unauthorised layout, conversion may not be possible unless the government announces a regularisation scheme.

Conversion may not be allowed if:

• The property is built on lakebed or government land
• There are court disputes
• The layout is fundamentally illegal
• There are heavy structural deviations
• It violates master plan zoning rules

In such cases, even if you have taken a loan, A Khata conversion may not happen.

If you have already taken a loan:

• The property is mortgaged to the bank
• The bank’s name is recorded as charge holder
• Any document modification may require bank consent

Steps typically required:

1. Inform the bank
2. Obtain NOC if required
3. Submit updated Khata to bank after conversion
4. Update mortgage records if needed

Most banks actually prefer A Khata, so they usually support conversion.