Loan Against Property

Loans have become a too convenient financial solution for arranging funds to fulfill our any kind of needs, be it personal or professional. Be it buying a new house, or car, or arranging money for your child's education or for any other purpose, you can get a loan as per your need and requirement. There are many types of loans available in the market, such as – personal loan, gold loan, wedding loan, etc., but many people do not know about loan against property.

 

What is loan against property?

A loan that you can avail by mortgaging your property. Loan against Property, as the name suggests, is a loan that is either owned by the applicant or by his guarantor, who is usually the parent. is given in exchange for the value of the property. This property is mortgaged, which means that the property papers and legal ownership of the property remain with the bank till the loan is repaid.

Loan against property is a secured loan, in case of loan default; bank can take over the property and auction it to recover loan dues.

In this loan the home ownership stays with you, you can use and rent out the property. In case if you can't repay the loan amount so you can sell your property and pay off the loan.

In case of joint ownership, all the owners should be a co- applicant.

Features & Benefits of Loan Against Property (LAP)

Some of the main features of Loan Against Property

  • The interest rates are very low as the property is mortgaged as the security of the loan.
  • This reduces the risk of default in payment on the part of the borrower.
  • Banks offer the facility of a longer repayment tenure, which can be up to 15 years.
  • Vacant land as well as rented residential property can also be mortgaged for availing loan.

 

Benefits of taking loan against property:-

  • You can use your property to take a loan without transferring your ownership.
  • Interest rates are much lower as compared to personal  loans.
  • The repayment deadline is long, so you get plenty of time to pay it off.
Eligibility Criteria For Loan Against Property (LAP)

There are some following factors that are considered by the some lenders while looking at your loan application. If you meet these eligibility criteria, you can consider yourself eligible for a personal loan.

 

Criterion Salaried Self Employed
Age 18 to 70 Y 18 to 70 Y
Monthly Income 10,000 25,000
CIBIL Score 650+ 650+
Min loan amount 60% of the Property Value 60% of the Property Value
Max loan amount 80% of the Property Value 80% of the Property Value
Tenure Upto 15 Y Upto 15 Y
Work Experience 3 Y 5 Y
Process For Applying Loan Against Property (LAP)

EMI Calculator & Schedule

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Loan EMI

24,959

Total Interest Payable

34,90,279

Total Payment
(Principal + Interest)

59,90,279

Loan Eligibility Calculator
%
Comparison Chart
LenderInterest RateProcessing FeeEMI / LakhLoan Tenure
7.00 %Upto 3.00 (Min Rs 2500 Max 5000)Rs 77520 Years Max
7.00 %Upto 2.00Rs 89915 Years Max
7.75 %Upto 0.50Rs 120010 Years Max
8.10 %Upto 0.10Rs 84320 Years Max
8.50 %Upto 0.50 (Min Rs 7500)Rs 98515 Years Max
8.95 %Upto 2.00 (Min Rs 10000)Rs 101115 Years Max
9.10 %Upto 1.00 (Max Rs 50000)Rs 127210 Years Max
9.25 %Upto 0.50Rs 13689 Years Max
9.40 %Upto 1.00Rs 103815 Years Max
9.65 %Upto 0.62 (Min Rs 890 Max Rs 8900 )Rs 16427 Years Max
9.75 %Upto 0.50Rs 105915 Years Max
10.10 %Upto 1.00 (Min Rs 10000)Rs 108115 Years Max
10.20 %Upto 0.50Rs 120712 Years Max
10.35 %1.00% (Min Rs 1,000)Rs 3,2436 to 36 Months
10.90 %NARs 3,26912 to 36 Months
10.99 %Starting Rs 999 (Min)Rs 2,58412 to 48 Months
11.35 %Upto 1.00Rs 139710 Years Max
12.00 %1.00%Rs 2,22412 to 60 Months
13.30 %0.50%Rs 2,69812 to 48 Months

Related Frequently Asked Questions

The current Interest rates  of loan Against Property  in India is:

 

Min- 8.00% - 8.95% p.a.

Max- 8.35% - 10.00% p.a.

Yes, You can avail this loan by mortgage of residential, commercial or industrial property. Generally, the interest rates are lowest when funds are availed against residential property.

To get best offer on loan against property you must have compare the ROI loan against property regular. You should keep an eye on bank's daily offer & terms and conditions.

If you have a fully constructed residential or commercial property with no other encumbrances, then loan against property is the best option as compared to any other type of loan. It offers large sums of money for a low interest rate as the loan is secured by collateral, your assets.

The maximum amount that an applicant can get with Loan Against Property depends on the employment status. Self-employed individuals can avail advances of up to Rs. 5 crore while the maximum loan limit for a salaried person is Rs. 50 million.

There are some of the ways below to get a loan against estate plan suitable for you:

 

- Before applying for the loan check your eligibility criteria

- You make sure to have all the correct documents.

- Compare all the loan schemes which is offered by different lenders.

Financial lenders have a set application fee that includes a fee and a legal verification process to get the property appraised.

No, the interest rate is offered by the lenders and all the lenders have different Interest rates.

RELATED BLOGS (2)

News Update on Loan Against Property

Borrowings: Need funds? You can go for loan against property

Admin 2022-08-30 12:25:25

f you own a property and have an immediate financial requirement such as a medical emergency, or higher education, or furnishing of the house, a loan against property (LAP) can be a better option as compared with an expensive personal loan. LAP can be used for any personal or business needs other than speculative purpose. The lender will not ask for any documentary evidence for the end use of the funds.

While the loan-to-value (LTV) would be 60-70% of the property, the maximum funding depends on your principal outstanding on all existing loans and the LAP being availed, infrastructure around the property, location and age of the property. While paying the EMI for the loan, you can continue to stay in the property. However, you can’t sell it till you clear the loan. In case of any default on repayment, the lender can sell the property to recover the amount.

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