Loan Against Property

Loan Against Property is a type of secured loan for salaried or self-employed individuals to cover their substantial monetary expenses. With this financial product, you can borrow funds from lenders by collateralizing your property. After assessing your residential or commercial property, lenders will approve your loan application and determine the applicable loan amount based on the LTV (Loan-to-Value) ratio. To opt for LAP in finance, you can mortgage any self-owned, piece of land or shop. However, the title and ownership of the property involved must be made clear.

Check out important features of LAP:

• Property Types: House, apartment, flat or commercial shop or building
• Eligibility: Salaried, Self-employed, Firm / Company Owners
• High Loan Amount: Depending on the property you are pledging as collateral and your repaying capacity, lenders sanction higher loan amounts as compared to other loan types. Lenders tend to provide up to ?5 Crore as loan amount.
• Competitive Interest Rate: As LAP loans are secured, lenders have a backup to raise the loan amount. Lenders are thus open to offer competitive interest rates as opposed to unsecured loans and other loans involving mortgages. These interest rates usually start from 9% p.a.
• Flexible Tenure for Repayment: The loan payment tenure for LAP is flexible for up to 180 months. With a longer period, the EMI amount is reduced, and it becomes affordable for borrowers to pay this amount on time.
• No End Use Restriction: Unlike other secured loans like Housing Loan or Machinery Loan, LAP loan does not have end use restriction. You can finance requirements like children's education, travel, wedding, home renovation, consolidation of debt and much more.
• Instant Approval: As it is a secured loan, the LAP loan is usually approved instantly. You just need to upload all the required documents for LAP.

Documents Required for LAP:

• Proof of identity: PAN Card/Aadhaar Card/Driving License/Voter ID/Passport
• Address Proof: Electricity bill for owned premises, Rent agreement for Rented premises, Passport
• Bank Account Statement: 6 months
• Property Documents: If finalized along with legal and technical clearance of the property
• Salaried Individuals: Past 3 month's salary slip and Form 16
• Self-employed individuals: Proof of their IT returns of last three years and balance sheets and P and L statements of the same period.
• Firm/Company Owners: Business profile, IT returns proof of the last three years and balance sheet and P and L statement of the same span.