Loan Against Property

Overview :

• Loan is granted on residential/ commercial property

• Take-over of existing loan is possible.

• Margin of 40% is maintained against residential property and 50% against commercial property.

• The loan is granted for a maximum period of 15 years

• The property is secured as a mortgage with the bank financing the loan

• The loan attracts a processing fee, which is a certain % of the sanctioned amount.

• There are also prepayment charges in case the loan is repaid before the stipulated tenor.

• The EMI recovered month on month is apportioned to the interest and then to the principal.

Eligibility :

• Loans are granted to resident Indians

• The applicant's age should be minimum 21 years

• Any self employed professionals/businessmen, Individuals, can apply.

• Income proof to be submitted, to prove repayment capacity

• Credit history should not show any adverse remarks like suit filed/ write-off etc on both loans and cards.

• Minimum of three years in business, with atleast 2 years in same line of business is necessary.

• The business should be in profits and this determines your loan amount eligibility.

Documentation :

• Application form duly signed with photograph

• Identity, age, and address proof

• Bank statement for the last 6 months

• Processing fee cheque

• Proof of business continuation

• Company profile

• Proof of qualification and business existence proof

• Last 3 years IT returns with computation of tax

• Last 3 years CA certified, audited financials (Balance-sheet & P&L)

• Post sanction documentation by the bank/FI

More About Information of Loan Against Property : A loan against property (LAP) is exactly what the name implies - a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 percent to 60 percent. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
What purposes can I take a loan against property for?
Loan against Property can be taken for following purposes :

• Expanding your business
• Getting your son/daughter married
• Sending your son/daughter for higher studies abroad
• Funding your dream vacation
• Funding medical treatments.