Loan Against Property (LAP) is a secured credit instrument that you can avail by pledging your property as collateral. These loans also go by the name of mortgage loans.
The basics of these loans are similar to other forms of credits that you can avail. The interest rates on these loans start from 9.25%. Another defining feature of this loan is that you can avail amounts as high as ₹15 Crores.
However, there are few things, such as interest rates, features, and benefits, you should know before availing this loan. To that end, read on to know more about a loan against property.
On This Page: Our Loan Against Property Partners | How to Apply | Eligibility Criteria | Documents Required| How to Calculate Loan Against Property EMI | FAQs
Loan Amount |
Up to ₹15 Crores |
Interest rate |
9.25% per annum onwards |
Repayment tenure |
Up to 25 years (300 months) |
Processing Fee |
Between 0.35% and 3% + taxes |
Foreclosure charges |
Up to 4% of the outstanding loan amount + taxes |
Disclaimer: The above-mentioned rates and charges are subject to change at the lender’s discretion.
Compare Loan Against Property offerings by top lending partners at Bajaj Markets and choose as per your requirement.
Our Partners |
Minimum Interest Rate |
Loan Amount/Tenure |
10.10% p.a. |
|
|
9.25% p.a. |
|
|
14.00% p.a. |
|
|
10.85% p.a. |
|
|
9.45% p.a. |
|
|
13.90% p.a. |
|
|
12.50% p.a. |
|
Disclaimer: The values mentioned are applicable as of January 2023. The interest rates and associated charges can vary for each lending partner and are subject to change.
Digital advancements have made it easier and convenient to avail a loan and also understand how it affects your finances. Tools like the digital calculator, commonly known as an Loan Against Property EMI calculator are popular examples.
This online calculator provides estimates of your EMIs based on your loan terms. With this you can also tweak the loan’s terms until you find suitable values. Best of all, these calculators are easy to use and you only need an internet browser.
Year | Principal | Interest | Balance |
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The features and benefits of the LAP you avail depends on the lender you choose. By availing a loan against property through Bajaj Markets, you can enjoy the following features and benefits:
Disclaimer: Terms and conditions apply to the above-mentioned benefits, and these may vary based on the lender.
Before applying for this loan, it is essential that you meet the loan against property eligibility criteria laid down by the lenders. Meeting the conditions mentioned below will increase your chances of a fast approval and swift financing.
Lenders require you to be at least 21 years old while applying for a loan against property. Additionally, you should not be more that 70 years when the repayment tenure ends.
As a salaried applicant, you need a stable monthly income to prove that you can handle payments. Lenders generally require salaried applicants to have a monthly income of up to ₹30,000.
For self-employed applicants, their business’s establishment and monthly income both dictate their eligibility. Self-employed applicants need to have businesses with a stable income and the necessary vintage.
The above eligibility criteria are general requirements, and can vary depending on the lender.
Knowing the document requirements beforehand allows you to furnish them promptly and avoid delays with loan processing. Here are a few general documents required to avail a loan against property:
Identity Proof: PAN card, Aadhaar card, Voter’s ID, passport, or any other credential issued by the Government of India
Address Proof: Voter’s ID, Aadhaar card, passport, utility bill, or ration card, or any other identity credential issued by the government
Latest salary slips of up to 3 months
Bank account statements going back 3 months
Latest Income Tax Returns (ITR), Form 16
Voter’s ID, Aadhaar card, passport, or any other government-issued ID that can count as proof of identity
Utility bill, Voter’s ID, Aadhaar card, passport, or any other government-issued address proof
Bank account statements going back 6 months
Property documents
ITR filed by the company, audited financials
Check with the lender to know the exact documents required for your application to process seamlessly.
Applying for a LAP loan is fairly straightforward and simple. Once you have been through all of the loan details and assessed every other aspect, you must follow the steps mentioned below to apply for a LAP loan.
To apply through the Bajaj Markets website:
Click on ‘APPLY NOW’ on this page.
Fill the application form.
Choose the lender.
Enter the property details against which you are availing the loan.
Submit the form after re-checking the details.
To apply through the Bajaj Markets app:
Input your personal and income details.
Select the loan offer that suits your requirements
Enter the loan amount and tenure of your choice.
Upload the required documents for verification.
Once you have submitted the form, the lender will assess and verify your application. Post verification a representative will get in touch with you for documents, identity, and property verification.
After the whole process is completed, the lender will transfer the sanction to your bank account.
The first course of action is to understand the reason for the rejection. Knowing why the lender rejected the application can help you gauge what can be done to avail the funding you need.
Common reasons why a lender may reject a loan against property application are:
Lack of a stable income due to frequent job change
Inadequate CIBIL score
Discrepancies in the paperwork
The property is built by an unapproved builder
Old property or negative results from field inspection
Once you know why the lender has rejected the application, there are few things you can do:
Negotiate with the lender
Work on your creditworthiness
Address the property-related issues
You can avail a LAP loan by offering a residential, commercial, or industrial property as collateral. Usually, loans that are secured by putting up a residential property as a collateral attract the lowest interest rates.
A LAP loan has no defined end-use. It is essentially a high-value personal loan that the borrower is free to use as they please.
Loan Against Property eligibility is calculated on the basis of the borrower’s CIBIL score, monthly salary or income, property value, and debt-to-income ratio, if any, at the time of filing the LAP loan application.
Yes, it is possible that a borrower can avail a LAP loan without income proof or income tax returns (ITR). However, they will need to compulsorily furnish bank account statements going back six months and pay the applicable processing fee via a cheque.
No, a hopeful borrower looking to secure a LAP loan does not have to pay an application fee. However, other charges such as processing fees and penalties will be applicable as and when they need to be levied.
Yes, it is possible to apply for a LAP loan while offering up a jointly-owned property as a collateral. In fact, some financial institutions recommend the same as it increases the chances of loan approval.