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Apply for Loan Against Property
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Loan Against Property Features
Flexible Loan Eligibility
Loans value from Rs.10 Lakh to Rs. 5 Crore
Loans against commercial, residential or industrial property
Loan for your business as well as personal needs
Features and Benefits of our Loan Against Property
- Secured Loan : The loan is secured against the value of your property. The property acts as collateral, reducing the risk for the lender. This generally leads to lower interest rates compared to unsecured loans.
- Loan Amount: The loan amount is determined based on the value of the property you pledge. Generally, you can get a higher loan amount compared to personal loans or other unsecured loans.
- Flexible Tenure : The tenure (repayment period) for a Loan Against Property is usually longer compared to other types of loans, often ranging from 5 to 20 years. This allows for lower monthly installments.
- Multipurpose : The loan amount can be used for a wide range of purposes, giving you the flexibility to address various financial needs without any restrictions.
- Improves Credit Scores : Successfully repaying a Loan Against Property can positively impact your credit score, as it demonstrates responsible borrowing behavior.
Loan Against Property Eligibility and Documents
Read on to know the criteria required to apply for our Loan Against Property.
Eligibility Criteria for Loan against Property
Nationality: You need to be a Citizen of India with documents to prove your claim.
Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.
Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.
Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.
Market Value of Property: Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.
Title of Property: Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.
Documents Required to Apply for Loan Against Property
- Proof of identity/residence
- Proof of income
- Property-related documents
- Proof of Business (for self-employed)
- Account statement for the last 6 months
Loan Against Property EMI Calculator
A Loan Against Property may be termed as a Mortgage Loan since to avail an LAP, you need to mortgage your property to cover risk of non-payment or default in repayment of the funds borrowed. For any lender to approve such a borrowing, the lender will first analyse your personal and financial profile, which will include criteria such nationality, age, occupation, income, and market value of the collateral you are willing to keep. A mortgage loan calculator then calculates the financial implications of such a loan based on certain parameters based on eligibility criteria to enable approval of your Mortgage Loan.
How is Loan Against Property EMI Calculated?
Loan Against Property EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:
EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Where:
EMI = Equated Monthly Installment
P = Loan Against Property principal amount
r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)
n = Loan Against Property tenure in months
Fees and Charges for Loan Against Property Loan
The fees and charges of property loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to property loans:
Particulars
Charges
Loan Processing Fees
0.5% to 4% of Loan Amount
Loan Cancellation
Usually 3000 to 5% of Loan Amount
Stamp Duty Charges
As per the Value of the Property and State Tax
Legal Fees
As per actual
Penal Charges
Usually 2% per month
EMI / Cheque Bonus
Approx 499/- to 599/-
FAQs
A Loan Against Property is a secured loan where you use your property as collateral to borrow money for various purposes, like business expansion, education, medical expenses, and more.
LAP funds can be used for diverse needs, including New Business expansion and growth, working capital, machinery purchase, medical emergencies, debt consolidation, and home renovations.
The loan amount depends on the property's value, usually ranging from 50% to 70% of its market value, determined by factors like property type and location.
LAP typically offers longer repayment periods, spanning from 5 to 20 years, depending on the lender's terms and your repayment capability.
LAP interest rates are relatively lower than unsecured loans, and they can be fixed or floating, depending on market conditions, lender policies, and your creditworthiness.
Apply at banks, NBFCs, or financial institutions offering LAP. Provide property and income-related documents for verification. After approval, the property's value is assessed to determine the loan amount.
You can use the property while making regular payments. However, selling or transferring ownership is restricted until the loan is settled.
LAP OD is an overdraft facility against your property's value. It allows flexible fund withdrawal and repayment, similar to a credit card.
LAP OD offers flexibility, interest savings on utilized amounts, revolving credit, emergency funds, cash flow management, and business support.
Yes you can do Balance transfer in LAP if you get a lower rate of Interest or better terms of Loan.
Yes you can take Top-up from existing Bank as well as you can do a Balance Transfer in another Bank and take a Top up.
A borrower can overdraw funds from their current account up to a certain limit, but at the same time the actual withdrawal limit of the overdraft reduces every month from the sanctioned limit.
