Loan Against Property (LAP)

Imagine that you want a loan to pay an emergency medical bill. You don’t want to give a high interest rate to the bank. You come to us for advice, and we remind you that you have a property. You can use this property as collateral to get a loan at a lower interest rate. You pay the loan amount plus the interest rate to the bank, and the bank will give you the legal papers of the property you used as collateral.

Since you gave collateral to the bank, a loan against property (LAP) is a secured loan. Banks, housing finance companies, and NBFCs provide LAP against residential, industrial, mix-use, and commercial property.

The rate of interest is lower compared to a personal loan or business loan. The lender disburses the loan at a reasonable time as well. There is no limitation on the person who can avail of the loan; salaries and self-employed are eligible.

A lower interest rate is not the only benefit you get; the bank sanctions you for a higher loan amount than other options.

Why do individuals prefer LAP over other options:

It is painful to pay a higher interest rate; LAP prevents you from shelling out extra money.
Just because you used the property is used as collateral doesn’t mean you cannot continue using it. If you have used a residential property, you can continue living in it.
The loan is multipurpose; you can use it to pay for your children’s education, an unexpected medical bill, the big fat Indian wedding, etc.
You get the loan faster if you are a customer of the bank or housing finance company. It is because the document verification step of the loan process is unnecessary in this case.

Who can take a loan against property?

Self-employed people who want to expand their venture can avail of this loan. Being your boss is the best feeling in the world. But sometimes, money can stop you from growing your vision. With a loan against property, you make the decisions without worrying about money. Opt for a loan against the property today by filling the inquiry form.

Salaried professionals can also opt for a loan against property. Life is unpredictable. It’s common for people to be financially unprepared for a medical crisis that may require long-term treatment, including expensive surgery. It can also be sending children to an international university for higher studies. With a LAP, your savings are intact; you have low-cost EMIs and long tenures (10-15 years) of repayment. Your monthly expenses and lifestyle are safe with a LAP. Want to get in touch with us? Kindly fill this inquiry form.

We believe in empowering individuals with information. Thus, here are some other facets of the loan that you must know about:

What is a Loan Repayment?

It’s the duration of the time you need to return the loan and interest amount to the bank. The time varies from lender to lender. It can range from 12 months to 15 years.

What is Property Valuation?

The bank needs to evaluate the price of your property before sanctioning a loan to you. The cost will depend on the property’s current market value and not on the previous market value. We advise that you analyze the loan-to-value (LTV) ratio provided by your lender.

What do you mean by Ownership of Property?

You will get the loan once the lender verifies that the property belongs to you. Thus, they will make the necessary verifications to ensure there is no fraud. You must note that the co-owners need to be part of the loan; otherwise, the lender will decline the loan.

What is Repayment Capacity?

Before approving your loan, the lender will ensure that you are capable of paying the loan. They will check your income statements, credit history, ongoing loans, etc.