How to Get a Loan Against Property?Purchase & Refinance Mortgage LoansUpdated on Jun 6, 2019 View more like this | Visit India, UN | Contact Alisha Antil |
Loan against property or LAP is one of the most widely availed loans in India because of its simplicity and ease of approval. These are a type of mortgage loan which is issued by financial institutions against a property kept as collateral. It can be a commercial or residential property or even a piece of land.
The loan amount obtainable through a LAP is quite high. Most financial organizations consider the value of the property before finalizing the eligible loan amount, which typically ranges from 70% to 75% of the property value.
Why choose a LAP?
Being a secured loan, loan against property is rather straightforward and quick to obtain. Since the risk for the lender is quite low, loan against property interest rates is comparatively lower compared to unsecured advances. Bajaj Finserv, for example, offers these advances at an interest rate ranging somewhere between 10.10% and 11.50%.
Apart from the attractive mortgage loan interest rates, another reason for the popularity of these loans is the quick disbursal time. Although it is a secured loan which typically takes time to authenticate and validate, you may expect the loan amount in your bank account within 4 days of application.
The flexible tenor for a loan against property also makes it an attractive proposition for most people. A salaried individual can choose a tenor between 2 years and 20 years based on his/her convenience. For self-employed individuals, the maximum tenor is 18 years.
There are no end-usage restrictions for LAP. You may use these loans for any purpose ranging from funding a wedding to expanding your business, going abroad for studies or to renovate your house. You can also use it to consolidate all your debts. Using a LAP is one of the most effective ways to repay your existing loans. The lower interest rates make it a more viable option compared to a home renovation loan mortgage for example.
There are several other favorable features of Loans against Properties offered by Bajaj Finserv such as convenient balance transfer facility, online account management, no charge part prepayment, and foreclosure, which make it popular among borrowers.
Furthermore, Bajaj Finserv also brings you pre-approved offers, which simplify the process of availing a loan and also help you save on time. You may avail these offers on multiple financial products including personal loans, home loans, and business loans. All you have to do is share a few necessary details and check your pre-approved offer.
The loan amount obtainable through a LAP is quite high. Most financial organizations consider the value of the property before finalizing the eligible loan amount, which typically ranges from 70% to 75% of the property value.
Why choose a LAP?
Being a secured loan, loan against property is rather straightforward and quick to obtain. Since the risk for the lender is quite low, loan against property interest rates is comparatively lower compared to unsecured advances. Bajaj Finserv, for example, offers these advances at an interest rate ranging somewhere between 10.10% and 11.50%.
Apart from the attractive mortgage loan interest rates, another reason for the popularity of these loans is the quick disbursal time. Although it is a secured loan which typically takes time to authenticate and validate, you may expect the loan amount in your bank account within 4 days of application.
The flexible tenor for a loan against property also makes it an attractive proposition for most people. A salaried individual can choose a tenor between 2 years and 20 years based on his/her convenience. For self-employed individuals, the maximum tenor is 18 years.
There are no end-usage restrictions for LAP. You may use these loans for any purpose ranging from funding a wedding to expanding your business, going abroad for studies or to renovate your house. You can also use it to consolidate all your debts. Using a LAP is one of the most effective ways to repay your existing loans. The lower interest rates make it a more viable option compared to a home renovation loan mortgage for example.
There are several other favorable features of Loans against Properties offered by Bajaj Finserv such as convenient balance transfer facility, online account management, no charge part prepayment, and foreclosure, which make it popular among borrowers.
Furthermore, Bajaj Finserv also brings you pre-approved offers, which simplify the process of availing a loan and also help you save on time. You may avail these offers on multiple financial products including personal loans, home loans, and business loans. All you have to do is share a few necessary details and check your pre-approved offer.
Besides the low loan against property interest rates, these are some of the features which are highly advantageous for borrowers. All you need to do is fulfill some essential eligibility criteria.
LAP eligibility criteria and documents required:
Every financial institution requires you to clear a few basic eligibility criteria before you can avail a loan against property. They are typically quite easy to meet.
For salaried individuals
1. Age between 33 and 58 years
2. Employment in a private or public sector enterprise
3. Indian residency
For self-employed individuals
1. Age between 25 and 70 years
2. Business pedigree of at least 3 years
3. Indian residency
If you meet these eligibility criteria, you can easily avail a loan against property from almost any financial institution.
The documents required are also minimal.
1. Salary slips and bank account statements for the previous 3 months for salaried individuals
2. Bank account statement for the last 6 months for self-employed individuals
3. Photo identity proof (PAN or Aadhaar card)
4. Proof of address
5. Copy of property documents
6. ITR file
If you fulfill the eligibility criteria and have all the documents in order, availing a LAP shall be a walk in the park. Use the loan amount according to your convenience and get rid of all your financial worries.
LAP eligibility criteria and documents required:
Every financial institution requires you to clear a few basic eligibility criteria before you can avail a loan against property. They are typically quite easy to meet.
For salaried individuals
1. Age between 33 and 58 years
2. Employment in a private or public sector enterprise
3. Indian residency
For self-employed individuals
1. Age between 25 and 70 years
2. Business pedigree of at least 3 years
3. Indian residency
If you meet these eligibility criteria, you can easily avail a loan against property from almost any financial institution.
The documents required are also minimal.
1. Salary slips and bank account statements for the previous 3 months for salaried individuals
2. Bank account statement for the last 6 months for self-employed individuals
3. Photo identity proof (PAN or Aadhaar card)
4. Proof of address
5. Copy of property documents
6. ITR file
If you fulfill the eligibility criteria and have all the documents in order, availing a LAP shall be a walk in the park. Use the loan amount according to your convenience and get rid of all your financial worries.
