Loans Against Property
Starting at 8.65% p.a.
Loan against property is a secured loan can be availed against a commercial or residential property kept as collateral with the lender. As the funds come with no end-use restriction, borrowers can utilise the funds for various purposes, such as for business expansion or your child’s wedding or education.
- LTV of the property loan is 65% – 80% of the current market value of the mortgaged property
- Comes with flexible repayment tenor up to 20 years
- Can be availed from 20 Lakhs up to Rs.200 Crore are available
- Simple and easy-to-meet eligibility criteria
A loan against property (LAP) is a loan disbursed against the security of one’s property, residential or commercial, to meet their financial needs. The property placed as security must be free of any encumbrance and the funds so borrowed, must not be used to carry out anything illegal.
The total value of the loan disbursed is usually 40%-65% of the market value of the property provided as security. These kinds of loans are cost-effective, easy to avail and come with low mortgage interest rates.
The actual list of documents varies from one bank/NBFCs to another. That said, here’s a list of the most common documents that are expected from all of them.
Proof of Identity:
- PAN Card / Voter ID / Aadhaar Card / Passport / Driving License
Proof of Address:
- Bank Account Statement / Aadhaar Card / Lease Documents / Property Purchase Agreement / Utility Bill / Passport / Driving License
Proof of Income:
- For Salaried Professionals: Salary Slip / Bank Account Statement / Form 16
- For Self Employed Individuals: ITR / P&L Statement and Balance Sheet / Bank Account Statement
Proof of Business:
- Certificate of Practice / Partnership Deed / GST Registration and Filing Documents / MOA & AOA / Shop Act License
Only individuals can avail a personal loan and not businesses. Both salaried and self-employed individuals and professionals are eligible. That said, the criteria for eligibility can vary from one applicant to another.
In the event that you are already paying an EMI towards a previous loan, your eligibility for a personal loan may go down. This is because your income in hand would be lower compared to a scenario where you are not already paying another EMI.
- 18/21 – 60/65 years.
- 750 and above.
- ₹15,000 for non-metro cities.
- ₹20,000 for metro cities.
Up to ₹50 Lakhs depending on your credit profile.
- Salaried Professionals must have been employed at their current workplace for at least 6 to 12 months.
- Self-employed Individuals should have had a business tenure of at least 3 years (continuous).
Note: All/any of the Eligibility Factors listed above are subject to change on a case by case basis, left to the discretion of the bank/NBFC you are applying for a Personal Loan from.
Starts after submitting of successful application in general starts with FI, (Field Investigation, Office and Resi verification, existing repayment check, Bank Statement check, RCU & Most importunately CIBIL Check after successful and positive check it move to Credit for Further discussion.
It may vary from Bank/NBFC process depends on existing relationship with respective clients vary from pre-approved process may be different in these checks. Etc…