Loan Against Property
Loan Against Property can get you a higher loan amount for your business or personal needs with the benefit of lower EMI. ... Quick and hassle free loan with speedy approvals. Residential and commercial properties accepted as collateral.
What is Loan Against Property?
A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 60 per cent.
Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
Why Loan Against Property?
Multiple Purposes
The loan against property can be availed for multiple purposes. It could be for business, education, medical needs, property purchase, marriage or any other personal or professional need.
Low Processing Fee
Most banks charge a low processing fee of 1% of the loan amount sanctioned.
Longer Tenure
Loans against property can be taken for tenure periods ranging up to 15 years or more, enabling the borrower gets sufficient time to clear the loan.
Lower Interest Rates
Loans against property come at lower interest rates compared to normal home loans, where the interest rate can be as high as 20%.
Eligibility Criteria for Loan Against Property:
Salaried Individuals
Professional
Self-Employed Individual
Property Eligibility
The property in question should be free from legal tangles and should have clear titles registered in the name of the applicant.