Loan Against Property Features
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
FAQ
What types of loans are available?
There are various types of loans, including personal loans, home loans, business loans, Auto Loan (Used/New), Loan against Property LAP, Over draft Limit, Inventory Funding, Loans for Professional, Machinery Loan, SME Loan, Mutual Fund & Insurance
and more. Each type serves a specific purpose.
How do I qualify for a loan?
Eligibility criteria vary based on the type of loan. Generally, factors such as credit score, income, employment history, and debt-to-income ratio are considered.
What is the interest rate on the loan?
Interest rates depend on the type of loan, the lender, and the borrower’s creditworthiness. Fixed rates remain constant, while variable rates can change based on market conditions.
What documents are required for a loan application?
Common documents include proof of identity, income statements, employment verification, credit history, and information about assets or collateral.
Can I get a loan with bad credit ?
Some lenders offer loans to individuals with bad credit, but interest rates may be higher. It’s essential to shop around and explore options.
What is the difference between a fixed-rate and variable-rate loan?
A fixed-rate loan has a constant interest rate throughout the term, while a variable-rate loan’s interest rate can change based on market conditions.
What is the loan term?
The loan term is the duration over which the borrower repays the loan. It varies by loan type and can range from a few months to several decades.
What is the difference between secured and unsecured loans?
Secured loans are backed by collateral (e.g., home or car), while unsecured loans don’t require collateral but may have higher interest rates.