Loan Against Property
Can help fulfill your Business and Personal needs
What is Loan Against Property (LAP) ?
Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as a collateral to support the finance provided by the lender. The margin for Loan against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value).
Different Types of Loan Against Property for Your Various Needs
- Property value and nature of the property
- Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.
How to Apply for a Loan Against Property (LAP)?
Features & Benefits of Loan Against Property (LAP)
Fees and Charges for Loan Against Property (LAP)
You should be ready to pay the processing fees for your housing loan. Some banks charge less processing fees, but may make up for that somewhere else. On the other hand, some banks and financial institutions consolidate their charges and include them in the processing fees. Let us look at some common charges you will most likely incur when you apply for home loan.
Loan Against Property Eligibility
Various factors go into the determination of your Loan Against Property eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons.
Loan Against Property (LAP) Documents Required
Every customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income
- PAN Card
- Aadhar Card
- Voter ID
- Driving Licence
- Registered Rent agreement
- Aadhar Card
- Driving License
- Lease agreement
- Latest Gas or electricity bill
- Loan application form duly filled in
- Signature Proof
- Copies of all property documents that can establish the chain of ownership for the past 30 years.
- Encumbrance certificate for 30 years
- Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer).
Income Proof Documents:
- Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16).
- IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well).
- Statement of A/c for the past 1 year where your salary is credited (in case of salaried people).
- Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons.
- Sales tax, GST registration certificates, if applicable.
- Partnership deed in case of partnership firms (if the applicant is one of the partners).
- Certificate of Incorporation in case of limited companies(if the applicant is one of the directors).
Loan Against Property EMI Calculator
When you decide to apply for a Loan Against Property, you need to assess your repayment capability so that you don’t end up in any financial problems and can find the cheapest Loan Against Property. Loan Against Property EMI Calculator is a useful tool in this regard for calculating the EMI (equated monthly instalment) of a Loan Against Property. It is a free of cost user-friendly tool that can be used anytime and from anywhere to calculate the monthly instalments you will have to pay. The Loan Against Property EMI Calculator requires you to enter a few Loan Against Property details to give you an accurate result, such as loan amount, interest rate, and repayment tenure.
Latest Loan Against Property News & Blogs
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