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Loan Against Property – is a Loan that can be availed by pledging your property as a security or a collateral ,Eligible loan amount depends on Individual Financial/ITR. These Loans are also sometime known as mortgage loans/LAP.
Loan Against Property interest rates range between 8.50% p.a. to 18% p.a. You can avail loans of up to Rs.25 crore for a tenure of up to 20 years with LAP.
01
Interest Rate
8.50% p.a. to 18% p.a.
02
Loan Amount
Up to Rs.25 crore
03
Loan Tenure
Up to 20 years
04
Processing Fee
1% - 3% of the loan amount + GST
Why Loan against property ?
1. Lower Interest Rates
A lower interest rate, which lowers your EMI and reduces the financial burden on the borrower.
2. Higher Sanction Amount
Depending on the type of property, whether it is residential or commercial, the lender can vary the credit amount from 70% to as much as 75% of the value of your property.
3. Longer Tenure of Repayment
Lap can be availed for a period of 10 to 20 years .So Emi payment on the loan is less,putting less effect on your cash flow .
4. Quick Approval of Loan
For a LAP, the process of getting approvals for the loan application is much easier.
Also, LAP is available for both self-employed professionals as well as the salaried class.
5. Tax Benefits
If you use your loan amount from your LAP for some specific purposes, you may even get certain tax benefits on interest payments. Section 37(1) of the Income Tax Act allows you to avail tax benefits on the interest and the processing fees if you are using your loan for business purposes. Similarly, under section 24(B) of the Income Tax Act, you can avail of tax deduction up to Rs 2 lakh, if you use your loan amount for purchasing a residential property.
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Eligibility Criteria
- Type of property- The property should be in India, be it a residential or commercial property.
- Minimum and maximum age- 18 to 70 years
- Employment type- Salaried or Self-employed
- Work Experience-Minimum 1 year in the current organisation
- Credit Score- 750 and above
- Net Annual Income-Minimum Rs.1.5 lakh p.a.
- Net monthly income-Rs.12,000 minimum monthly income
- LTV Ratio – Up to 75% of the value of the property
- Legal property documents authorized by the Government of India – Registration Certificate, Property Tax Receipts, Sales Deed, etc.
How to apply for Loan Against Property?
You can apply for Loan against property from a financial lender by following the steps described below:
Step 1: Visit the website of the financial lender to start the process of applying for the loan online.
Step 2: The customer support team of the lender will reach out to you after you submit your application and request you to provide the necessary documents.
Step 3: Once you have submitted the required documents, the lender will carefully verify them to ensure everything is in order.
Step 4: In addition to document verification, the lender will also inspect the property associated with your loan application.
Step 5: If your application meets all the criteria and is approved, the loan amount will be credited directly to your bank account.
FAQ
What types of properties are accepted by lenders providing Loan Against Property (LAP)?
Different lenders have different criteria for the type of property to be accepted against a mortgage loan. However, mostly all lenders accept the residential, commercial or industrial property. It is important to note that the physical condition and age of the property may affect its acceptance by the lenders.
Is there moratorium offered by banks on Loan against Property?
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.
A frequently asked question surrounding your service
A detailed answer to provide information about your business, build trust with potential clients, and help convince the visitor that you are a good fit for them.