Loan against property (LAP) is a loan that you get by providing your residential or commercial property as collateral. Your property, in this case, acts as a guarantee of your repayment. It also decides the amount of loan that a lender / financial institution will sanction for you.
What is the maximum loan amount one can get against a property?
The loan amount would depend upon the value of the property you wish to mortgage as security. Generally, a lender / financial institution would sanction a loan of up to 80% of the value of the property you put up as security.
What is the loan against property interest rates?
The rate of interest for loan against property (LAP) would range anywhere between 10% to 11% for salaried professionals.
What is the loan against property eligibility criteria?
- You should have a property in your name.
- You should have a steady and regular income.
- The value of your property that you have mortgaged will be taken into consideration along with all your past debts as well as savings
- Records for your past repayments like credit cards and loans.
What are the documents required for loan against property?
-Latest Salary Slips as income proof
-Last 3 months bank account statements
-PAN Card/Aadhaar Card
-Copy of the documents of the property to be mortgaged
What is the tenure of the loan?
The tenure of the loan against property available at Finserv MARKETS is up to 2 to 20 years for salaried professionals and 2 to 18 years for self-employed.
What type of properties will I be able to take a loan against?
- Self-owned including self-occupied residential properties.
- Self-owned residential properties.
- Self-owned but rented residential properties.
- Self-owned commercial properties.
- Self-owned but rented commercial properties.
What is the End Use of Loan Against Property?
LAP can be used for business expansion, to convert your working capital limit to term loan, debt consolidation, purchase of machinery or plant, to convert your current loan at a better rate of interest, marriage, education, travel or other personal requirements.
Important Points to Keep in Mind Before Going in for LAP
Keep the below points in mind before you apply for loan against property:
Opt for a Shorter Tenure
Though a longer tenure of 30 years may seem quite tempting due to lower EMIs, in the long run, you would end up paying more interest. Hence, it’s advisable to go in for a shorter tenure. The best thing you could do is to ask your lender to increase your EMIs every year with the rise in your income. This would allow you to repay your loan sooner.
Make Your EMI Payments on Time
We at Finserv MARKETS couldn’t stress on this more. When it comes to paying your monthly EMIs, it’s very important that you follow strict guidelines and pay them on your fixed dates every month. This will help you stay away from late payment penalties and will also maintain a good credit score rating as well. Irregular repayments will make it difficult for you to apply for a loan again. You can also opt for our flexible repayment tenure option. You can also read about how EMI is calculated.
Whenever you take a huge loan amount it’s advisable that you also take an insurance cover too. Finserv MARKETS also offers customized insurance plans to protect your family as well. This would help decrease the burden and stress on your family under unfortunate circumstances. You could go in for insurance that is equal to the loan amount or even a regular term plan insurance which would go on even after your loan is all paid up.
Visit the Finserv MARKETS website to know more about our Bajaj Finserv Loan Against Property.
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