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Overview

(Maximum Loan on your property) (Loan from 10 Lakhs to 10 Crore) (Low Rate of Interest) (Maximum Tenure) (No End-Use Restrictions)

99.9% Success Rate Guarantee

Flexible with Your Repayments

Features

  1. Secured Loan: Loan Against Property (LAP)
    • LAP is a secured loan where you pledge your residential or commercial property as collateral to borrow money. The property acts as a guarantee for the loan repayment.
  2. Loan Amount
    • The loan amount you can avail is typically 40% to 70% of the market value of the property being pledged, depending on the lender’s policies and the type of property.
  3. Lower Interest Rates
    • As the loan is secured, it generally comes with lower interest rates compared to unsecured loans like personal loans.
  4. Longer Repayment Tenure
    • LAP usually offers a longer repayment period, which can range from 5 to 20 years, making monthly payments more manageable.
  5. Flexibility in Usage
    • The funds obtained through LAP can be used for various purposes such as business expansion, home renovation, education, medical emergencies, or any other personal need.
  6. Eligibility Criteria
    • The eligibility for LAP depends on the borrower’s property value, income, credit score, and repayment capacity. Typically, the borrower needs to be an individual (self-employed or salaried) or a business entity.
  7. Quick Processing
    • While the processing time is longer than unsecured loans, it is still faster than traditional loans due to the security of the collateral. The property will be evaluated for its market value, and after necessary checks, the loan can be disbursed.
  8. Prepayment and Foreclosure Options
    • Many lenders offer the option to prepay or foreclose the loan, although this may come with some conditions or fees.
  9. No End-Use Restrictions
    • Unlike some loans that are meant for specific purposes, the funds from a LAP can be used freely according to the borrower’s needs.
  10. Collateral Valuation
    • Lenders require the property to be valued by an independent valuer to determine the loan amount. The property’s location, condition, and market value all play a role in this assessment.
  11. Documentation
    • To avail LAP, the borrower typically needs to provide proof of property ownership, identity proof, income proof, and other personal or business-related documents.
  12. Tax Benefits
    • In some cases, interest paid on a Loan Against Property may be eligible for tax deductions if the loan is used for business purposes.
  13. Lower Processing Fees
    • Processing fees for LAP are generally lower than unsecured loans, although they may still vary depending on the lender.

Loan Against Property Eligibility and Documents

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Eligibility

Home loan eligibility refers to the criteria that a borrower must meet to qualify for a home loan from a financial institution, such as a bank or finance company. These requirements are used to assess the borrower’s financial stability and ability to repay the loan. Here are the key factors typically considered for home loan eligibility:

  1. Age
    • Salaried Employees: Borrowers must generally be within a specific age range (e.g., 21 to 60 years) at the time of loan application.
    • Self-Employed / Business Owners: Borrowers must generally be within a specific age range (e.g., 21 to 65 years) at the time of loan application.
    • Note: The age limit ensures the borrower can comfortably repay the loan before retirement.
  2. Income
    • Minimum Income Requirements: Lenders assess the borrower’s monthly or annual income to ensure they can handle the loan repayments.
    • Salaried Employees: Minimum annual income required is 1,80,000.
    • Self-Employed / Business Owners: Minimum annual income required is 5,00,000.
  3. Credit Score
    • Good Credit Score: A higher credit score (typically above 650-700) indicates a history of responsible borrowing and makes it easier to get loan approval with better terms.
    • Low Credit Score: A lower score may require the borrower to pay a higher interest rate or provide a larger down payment.
  4. Employment Status
    • Salaried Employees: Minimum 2 year of service is required and continuous service for 1 year in one organisation.
    • Self-Employed / Business Owners: Minimum 3 years of business standing is required.
  5. Property Type

    The type of property you are purchasing (residential, commercial, under-construction, etc.) affects eligibility based on the property type and its value.

  6. Down Payment

    Usually, you need to make down payment of 10-20% of the property value. The higher your down payment, the better your chances of approval.

  7. Existing Liabilities

    If you have existing debts (e.g., personal loans, credit card debt), they will be considered in your eligibility. Lenders ensure you’re not over-leveraged by considering your existing liabilities alongside the new loan.

  8. Loan Amount

    We assess the loan amount you request in relation to your income, credit score, and property value. The loan amount should not exceed what you can afford to repay based on your financial situation.

  9. Residence and Nationality
    • Residency Status: We typically require borrowers to be residents of the country in which they are applying for the loan. Some may also offer loans to non-residents under specific conditions.
    • Nationality: Some institutions may have specific eligibility requirements based on citizenship, particularly for government-backed loans.

Documents Required

  1. Personal Information
    • Proof of Photo Identity: PAN Card & Aadhar Card
    • Address Proof: Passport/Driving License/Voter ID/Aadhar Card/Ration Card/Light Bill
    • Photographs: Recent passport-size photographs (as per requirement)
  2. Age & Employment Details
    • Proof of Age: Birth certificate, passport, or any government-issued ID
    • Employment Details:
      • Employment ID card, salary slips for the last 3-6 months
      • Employer certificate/Joining letter/confirmation letter
      • For Self-Employed:
        • Last 3 years Income Tax Returns, profit/loss statements, and business registration details
      • If applicable, proof of business ownership or partnership agreement.
      • Udyam Registration certificate.
      • GST registration certificate (If applicable).
  3. Income Proof
    • Salaried Employees:
      • Latest 3-6 months' salary slips
      • Bank statements for the last 1 year
    • Self-Employed:
      • CA certified Income Tax Returns (ITR) with audited balance sheet and profit & loss statement for the last 3 years
      • All bank account statements for the last 1 year
      • 1 year GST statement (if applicable)
  4. Credit Score
    • Credit Report: Check your credit score and ensure it meets the lender’s requirements. A score above 650-700 is generally favorable.
  5. Existing Loans or Liabilities
    • Proof of Existing Loans: Documentation for any ongoing loans (personal, car, educational), including statements showing outstanding balances
    • Other Liabilities: Credit card bills, monthly installments, or other obligations
  6. Property-Related Documents
    • Property Title Deeds: Proof of ownership, if the property is already owned.
    • Sale Agreement: If you're purchasing a new property.
    • NOC from the Builder: For properties under construction (if applicable).
    • Legal/Technical Clearance: Any clearance from the local authorities or government agencies.
    • Occupancy Certificate: If the property is ready for occupancy.
    • Building Plan Approval: In case of new construction or renovation.
  7. Down Payment & Savings Proof
    • Bank Statements: To show the source of the down payment (typically 10-20% of the property value)
  8. Property Valuation
    • Valuation Report: Independent valuation of the property will be done by an approved expert.
  9. Co-Applicant Details (if applicable)
    • Co-Applicant Identity Proof: If a co-applicant is involved, their identity and address proof.
    • Income Proof of Co-Applicant: Income verification documents (if the co-applicant will be contributing to the loan repayment).
    • Co-Applicant’s Credit Score: A check on the co-applicant's credit score for assessment.
  10. Loan Application Forms
    • Completed Application Form: Filled and signed home loan application form with all required details.
  11. Loan Repayment Plan
    • EMI Calculation: Consider calculating potential EMIs using online calculators to ensure the loan is affordable.
    • Loan Term & Amount: Decide on the loan tenure (e.g., 10, 15, 20, or 30 years) and the amount you wish to borrow.
  12. Insurance (if applicable)
    • Home Loan Protection Insurance: We offer home loan protection plans, which provide insurance in case of unforeseen events.
    • Life/Health Insurance: For the borrower and co-applicant, to ensure financial security in case of any untoward incident.

Charges

When applying for a Loan against Property loan, there are various fees and charges bthat borrowers should be aware of. These fees vary depending on the lender and the type of loan but generally include the following:

Charge Type Range
Processing Fee 0.5% to 2% of loan amount or flat fee
Documentation Charges ₹500 to ₹2,500
Legal and Technical Charges ₹5,000 to ₹20,000
Valuation Fees ₹3,000 to ₹10,000
Prepayment/Foreclosure Charges 0% to 2% of outstanding loan amount
EMI Bounce Charges ₹500 to ₹2,000 per bounced EMI
CIBIL/Credit Report Charges ₹200 to ₹1,000

Reviews

Great Experience!" "I was looking for a personal loan and found this website very helpful. The application process was quick and easy, with clear instructions throughout. The interest rates were competitive, and I was able to get approval within a few days. Customer support was excellent—answered all my questions promptly. Highly recommend this site for anyone looking for hassle-free loan services!

Rahul Singh

Smooth & Fast Process" "I applied for a home loan through this website, and it was a smooth process from start to finish. The loan options available are comprehensive, and the terms were explained clearly. The team guided me through the paperwork and made sure everything was processed quickly. Overall, a fantastic experience with quick approval and minimal paperwork.

Saurabh Patel

Reliable and Trustworthy" "I’ve used this loan website for both a personal loan and a loan against property, and I’ve always had a positive experience. The website is user-friendly, and the loan products offered are tailored to different needs. The application process is straightforward, and the staff is professional and responsive. I trust them with my financial needs and highly recommend their services.

kavita Sharma

FAQ's

  • A Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to borrow funds. The loan amount is based on the property’s market value and can be used for various purposes like business expansion, medical emergencies, education, etc.

  • You can use both residential and commercial properties as collateral for a Loan Against Property. Some lenders may also accept industrial or agricultural land, depending on their policies.

  • The loan amount depends on the market value of your property and the lender's policies. Typically, you can borrow 40% to 70% of the property’s value.

  • The loan tenure for LAP typically ranges from 5 to 20 years, depending on the lender’s terms and the borrower's repayment capacity.

  • Interest rates for LAP are generally lower than unsecured loans like personal loans because the loan is secured by property. Rates typically range between 8% to 15% per annum, depending on the lender, borrower’s credit score, and the property’s value.

  • Refer to our eligibility section.

  • Refer to our documents section.

  • The processing time for a LAP generally takes 7 to 15 days, depending on the lender. This includes time for property valuation, legal checks, and documentation.

  • Yes, most lenders allow prepayment or foreclosure of the LAP, though some may charge a fee for it. Be sure to check the terms regarding prepayment or foreclosure penalties.

  • Yes, you can still apply for a LAP if your property is already mortgaged, but the total amount of the new loan (plus the existing mortgage) cannot exceed the lender’s maximum loan-to-value ratio, typically around 70% of the property’s market value.

  • The loan amount itself is not tax-exempt, but the interest paid on the loan may be eligible for tax deductions if the loan is used for business purposes. However, for personal use, there are no tax benefits.

  • If you fail to repay the LAP, the lender may take legal action and initiate foreclosure proceedings, where your property can be seized and sold to recover the outstanding loan amount.

  • Yes, self-employed individuals (such as business owners or professionals) are eligible for LAP, provided they meet the eligibility criteria, including having a stable income and a good credit score. You’ll also need to show your business financials (like income tax returns and profit-loss statements).

  • The lender will typically assess the market value of the property through an independent property evaluation. Factors such as location, condition, and the prevailing real estate market will influence the valuation.

  • Yes, LAP is commonly used by business owners to fund their business expansion, pay off debts, or for working capital needs. Self-employed individuals can use LAP for various business purposes.

  • The loan amount is already based on the current market value of the property. A decrease in property value during the loan tenure doesn’t affect your existing loan or repayment schedule. However, in the case of foreclosure, the lender may have a different valuation.

  • This depends on the lender’s policies. Generally, most lenders prefer completed properties rather than under-construction ones as they are considered riskier. However, some lenders may offer loans for under-construction properties in specific cases.

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