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Loan Against Property

Have plans for enhancing your business (or) daughter’s marriage (or) child’s higher education in abroad? We at LoanBazaarOnline guide you with several sources available to get funds for fulfilling your dreams.

Loan against property is one such type of loan that meets your emergency fund requirements and fulfills your aspirations. This is a type of loan offered against mortgage of your personal or commercial property. The eligibility for an LAP is determined based on your income and the value of the property. The loan is disbursed as a certain percentage of the market value of the property for several purposes that include:

  • Renovate your home
  • For children marriage (or) Higher education expenses
  • For Business Improvement
  • For medical treatments
  • Other fund requirements

Who can be a Co-applicant for a Loan against Property?

  • Co-owners of the property
  • Spouse of applicant
  • Brothers (both primary and secondary applicant must be brothers)
  • Son and father
  • Son and mother
  • Unmarried daughter and parents

Eligibility

  • Salaried individual
  • Self employed individual
  • Self employed professional like doctor, chartered accountant, etc.
  • Aged above 21 years
  • Have a good CIBIL credit score
  • Good repayment capacity with fixed & stable income source
  • Work for a stable company

Checklists

  • Residence and Identity proof
  • Last 6 months salary slip (for Salaried Individuals) / Proof of Business and Income source (for Businessmen or self-employed)
  • Last 6 months bank statement
  • Form 16 (for Salaried individuals) / Profit & Loss Balance sheet along with last 3 years IT returns (for Businessmen or self-employed)
  • Passport size photographs
  • Processing Fee Check

Benefits

  • Loan against personal or commercial property
  • Lower interest rates and cheaper EMIs than the personal loans.
  • Can be availed by Salaried & Self-employed individuals
  • Can get up to 40-70% of the market value of the property
  • Loan tenure up to 15 years for ease of repayment

FAQs

1.Who can avail a Mortgage Loan?

Both Salaried as well as Self­Employed people can avail Mortgage Loan, irrespective of the income.

2.Which factors determine the eligibility of a mortgage loan?

The general factors taken into account while determining the eligibility of loan against property are listed below:

  • Income
  • Age (Min. 21 Years)
  • Property Valuation
  • Existing Liabilities (if any)
  • Current Work Experience
  • Financial Documents
  • Number of Dependants

3.How would the value of my property be determined?

The value of the property would be determined through a valuation conducted by the Loan Provider.

4.What is the difference between a Home Loan and Loan against Property?

There is a huge difference between a Home Loan and a Loan against property. Home Loan is taken only for the purpose of buying a residential property whereas a Loan against Property can be taken for any purpose.

5.What are the stages involved in availing the loan?

  • Application
  • Processing
  • Documentation
  • Verification/Valuation
  • Sanctioning of the Loan
  • Disbursement

6.Is there any processing fee charged by the Bank?

Yes, a nominal fees and charges are to be paid to the Bank depending upon their term and conditions.

7.How much time does the Bank take to disburse the loan?

The processing of the loans usually takes 7 to 10 working days once all the documents are submitted. It also depends upon your profile and documentation.

8.How can I repay my loan?

The repayment of loan is done through Equated Monthly Installments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS)

9.Can I pre­pay my loan?

The loan against property can be pre­paid along with the pre­payment charges. Usually the bank charges 2% of the principal pre­paid.

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