A Loan against Property (LAP) is a good way raising money for expanding your business or starting a new business, financing your child’s education, managing sudden medical expenditures or even handling your own wedding expenses.
The Loan against Property is a type of secured personal loan since the borrower here uses his/her property as collateral. This is also one of the reasons why the interest rates for Loan against property (LAP) are generally lower than any regular personal loans. Loan against Property is also termed as Mortgage Loans. Loan against property is one of the best options available if you own a self-occupied residence or even a plot of land or a commercial property. Even if you have availed loan against the property you will still have a complete control of the property without any restrictions.
• Identity proof • Last 3 months’ salary slips • Residence proof • Form-16 • Last 6 months’ bank statements of your salary account • Cheque for loan processing fees
• Identity as well as residence proof • Education qualification Proofs • License/registration certificates • Proof of existence of your business • Business profile in detail • Last 3 years’ profit and loss sheet (P&L) and balance sheets • Last 3 years’ Income tax returns • Last 6 months’ bank statements
• Identity as well as residence proof • Education qualification Proofs • Last three years Income tax returns • Last 6 months’ bank statements
Mentioned below is the step-by-step process for loan against property application in India:
Step 1: Visit the official website of the bank or the financial institution and then fill up the loan against property online application form. You may also visit the bank branch for an enquiry and fill up the form in person
Step 2: You will receive a call from the bank or the financial institution within 24 hours from receiving the application
Step 3: You may receive the loan application approval within 48 hours of applying from the same
Step 4: Submit all the necessary documents to the bank’s executive
It is important to understand the features of Loan against Property even before you apply for one. Let’s have a look at the different features as well as benefits that Loan against property (LAP) offers:
The LAP is a type of secured loan. In short, it is provided only as a loan against a commercial or a residential property, against the property provided as a security to the lender
You can easily avail a loan of up to Rs. 10 crore with the help of loan against property
The interest rates on loan against property are usually lower and may vary case to case and mainly is decided basis the type of property and various other factors.
The tenure for the loan against property would be around 15 years or more.
You can avail loan against property for any purpose that includes both personal or professional requirement, education, business purposes, property purchase, marriage, medical needs, etc.
The processing fee as low as 1% of the total loan amount would be generally sanctioned
The interest rates for loan against property are much lower as compared to other types of loans such as personal loan
In case your eligibility criteria matches with that of the bank or the financial institutions, your application for the loan against property would be done easily and hassle free
You can repay the loan against property value in easy monthly instalments (EMI)
Usually the requirements of a financial institution or the bank for loan against property is quite liberal. Your residential or commercial property is kept as a collateral for being eligible for loan against property. The eligibility criteria of every bank differs. However, the most common criteria’s are mentioned below:
You should be an Indian National.
You should be minimum 21 years old while applying for a loan against property
You should be currently employed by your current organization or should be self-employed in your current businesses for certain number of years as decided by your bank..
You need to satisfy the minimum requirement of your income as imposed by the lender
The moment you apply for a loan against property, an application reference number is generated which you can utilize for checking the status of your loan application on the bank’s or the financial institutions website. In case your loan against property gets sanctioned, you will receive a text message on your registered mobile number for the same. After this, the funds would be credited to your bank account shortly
Yes, you can apply for a loan against property in case the co-applicant of the loan is the joint owner of your residential or commercial property. In cases like these, there are chances of getting a higher loan amount for joint properties.
Yes, there are some lenders who offer Loan against Property to Non-resident Indians. However, it completely depends on various terms and conditions of the bank or the financial institution, who you wish to avail the loan against property from.
Yes, there are charges of property evaluation as well as for legal verification process, as set by every bank or financial institution
You can select reasons such as personal, business related or debt consolidation
No, the loan against property interest rates would vary from one lender to another. Also, 18% GST will be applicable on account of banking services as well as products.
Q. Is the interest rate standard for the loan Against Property between lenders?
A. No, the loan against property interest rates would vary from one lender to another. Also, 18% GST will be applicable on account of banking services as well as products.
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