Who can avail a loan against property?
- Individuals - Salaried / Professionals / Self-employed
- Non-individual entities - Proprietorship firms / Partnership firms / Private limited companies / Public limited companies.
How much loan can I avail against the property?
The loan amount depends on the property type, valuation and bank's policy. Generally, you can get a loan for maximum up to 100% of the property value.
What is the eligibility for loan against property?
- Anyone aged between 22 and 65 years who is not retired is eligible
- Your income Assets and liabilities
- Credit score and history (the prospect of getting a loan increases with a good credit score)
- The type and value of property
- Residential status.
My property is co-owned by my parents/ spouse/ relatives. Can I apply for a loan individually or do I need a co-applicant?
If the property is co-owned, all co-owners need to be co-applicants.
What is the loan processing time for LAP?
It usually takes 7-15 working days after all the documents are submitted. The process includes evaluating your property value through a credit, legal and technical accessor.
How would the value of my property be determined?
It will be determined through a valuation conducted by independent credit accessor appointed by the banks/NBFCs.
How do I apply for a loan against property?
You can first compare among different banks and NBFCs for the loan amount, rate of interest, time period and others facilities provided by them on the Loansjagat platform and than as per your convenience you can apply both online as well as offline.
Do I need a co-applicant for this loan?
A co-applicant for loan against property is required if you want to support better financial position to avail higher loan amount. Also co-applicant is required mandatory when the property being mortgaged is owned by more than one person. In all such cases, all co-owners of the property mandatorily become co-applicants.
What do you mean by the market value of a property?
The market value of a property is the estimated value in terms of money that a property can raise if it is sold at prevailing conditions.
For how long can I take a loan against property and what interest rate will I be charged?
The tenure of a loan against property usually can be as long as 15 years, with interest rates typically ranging from 8.75% to 15.75%. The exact tenure and interest rate on your loan may vary to a certain extent from one lender to another.
Can NRIs avail loans against property?
Yes, several financial institutes offer loans against property to NRIs, subject to verification of all documents.
What can Loan against Property be used for?
Any loan against a residential or commercial property can be used for both personal and business purposes. In fact, you can use it for anything other than speculative or non-prohibitive activities.
What are the processing fees for such a loan?
Processing fee for loan against any property varies from bank to bank and is generally around 1 percent.
Does one have to provide any security to avail this loan? If yes, what kind of security?
Yes, a loan against property can be availed only after attaching the property as security. The property so attached should have clear titles and should be free from encumbrance. It should not have any existing loan, mortgage or litigation which can impact the title of the property.
Are self-employed individuals eligible for loan against property?
Yes, self-employed individuals can avail of this loan provided they have sufficient documents and repayment capacity.
Does the property in question have to be insured?
Yes, most banks require the property to be insured before providing a loan.
How does one get back the property pledged as security?
The property pledged as security will be returned back to the owner once the entire loan amount is cleared and there are no pending dues.
Can a loan against property be availed against rented property?
No, Loan against property can only be availed against own property of the applicant (whether Residential or Commercial or Industrial).
Why should I opt for a Loan Against Property instead of a Personal and Business Loan?
A Loan Against Property (LAP) has many advantages over these Loans. They include:
- A Higher Loan Amount: Typically, a LAP may offer a higher loan amount than these Loan.
- Lower rate of interest: With secured collateral rate of interest tends to be lower than these loans with no collateral.
- Longer tenure: A LAP can be availed for a long term than these Loans.
What is the minimum and maximum amount of Loan Against Property that I can get?
You can get a Loan Against Property from Rs. 10 lakhs to Rs. 50 crores. Some of the factors that banks consider when deciding a loan amount are:
- The property's registration
- The property's market value
- Your requirement and eligibility
- Your income and repayment capacity.
What documents do I need to submit along with my application for a Loan Against Property?
Along with your application you need to submit the following documents:
- Proof of residence
- Proof of identity
- Certified / latest financial documents
- Copies of all property documents (which to be submitted as collateral).
How do I know if my property is eligible for loan against it?
It depends upon various factors such as :
- Area location of the property
- Size of the property
- Construction of the property
- Status of the property (i.e. Self- Occupied / Rented / Vacant)
- Type of the property (i.e. Residential / Commercial / Industrial)
To know if your property is eligible for loan, click on (know your property page).
Is salaried person eligible for loan against property?
Yes, a salaried person is eligible provided he/she gives suitable purpose of taking loan.
What are the physical events of loan against property?
The physical events involved are:-
- The valuation of the property
- For higher loan amount, a personal discussion with the bankers to understand your financial position for the purpose of repayment of loan
- Residential and office verification.