A Loan Against Property (LAP) is a type of secured loan where individuals can borrow funds by pledging their residential, commercial, or industrial property as collateral. The loan amount sanctioned is typically a percentage of the property's market value, and it can be used for a variety of personal or business needs, such as expanding a business, funding education, or covering medical expenses. Since LAP is secured by property, it generally offers lower interest rates and longer repayment tenures compared to unsecured loans. The ownership of the property remains with the borrower, and the property is released once the loan is fully repaid. A Loan Against Property is an ideal solution for individuals seeking substantial funds without liquidating their assets.

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.

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.

Documentation for Loan Against Property Loan

1. Proof of identity/residence

2. Proof of income

3. Property-related documents

4. Proof of Business (for self-employed)

5. Account statement for the last 6 months

Fees and Charges for Personal Loan

The fees and charges of personal 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 personal loans:

Personal Loan FAQs