Loan Against Property
Loan Against Property
Loan against property is a type of secured loan that allows individuals to borrow money by keeping their property as collateral. The loan amount approved depends on the value of the property pledged as collateral. The borrower can use the funds for any purpose, including business expansion, education, medical expenses, or debt consolidation. The interest rates on these loans are usually lower than those on unsecured loans, and the repayment period can be up to 20 years.
How we get Loan Against Property Loan?
Loan against property is a popular option among home and business owners who need quick access to funds without selling their property. However, if the borrower fails to repay the loan, the lender has the right to seize the property and recover the outstanding amount.
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One of the key advantages of a loan against property is the high loan amount that can be availed. As the loan is secured against property, lenders are more willing to offer larger loan amounts compared to unsecured loans. The loan amount can range from a few lakhs to crores of rupees, depending on the value of the property.
More About Loan Against Property ?
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.
Documents required to apply for Loan Against Property ?
- Proof of identity/residence
- Proof of income
- Property-related documents
- Proof of Business (for self-employed)
- Account statement for the last 6 months
