Loan against property (LAP), are basically loans provided by banks against the security of one’s own property. LAP is designed to meet the financial needs of someone who already owns a house or multiple properties so as to get the best out of their assets. It’s important to remember that the property which you are putting up for your loan should be free any encumbrance (i.e., it is not given as security for any purpose or any other loan).

Banks provide LAP for both Salaried as well as Self-Employed individuals. The rates and loan amounts differ based on your property and your annual income.

Banks will always want to consider all risks, which is why while you are applying for your loan against property, there are certain factors the bank considers with respect to your property to mitigate its risks in giving out the loan. These factors determine your rate of interest, and loan amount. You can get a LAP of up to 80% of the registered value of your property depending on the Bank’s policy and the property type and valuation.  The value of the property would be determined through a valuation conducted by the Loan Provider.

Individuals apply for LAP for a variety of reasons. Some of the common ones are your child’s wedding, loans for new business ventures, second homes, vacations, medical treatment just to name a few.

Advantages

• Quick & Easy Processing

• Convenient and transparent process

• Personalised products to suit individual needs

• Hassle-free documentation and quick disbursal

Why Loan Against Property is the right choice for you

• Multi-Usage of the Loan

Loan Against Property is one of the most diverse loans you can take. Using your property as collateral, you get access to funds that can address your needs. You have the choice to use the money to expand your business or use it for more personal reasons such as education or wedding. You can even use it to renovate your home or for unexpected medical expenses. It is entirely up to you as you have full freedom.

• You still own the property

You use your property only as collateral while you continue to own the valuable asset. Only in the event that you feel that you are unable to repay the loan amount, you get the choice to sell your property in order to settle the loan. However, you have the power to tailor your repayment options to make sure you never have to lose your property.

• Choice in property type

You have the choice when it comes to what kind of property you wish to use to secure a loan. Most of banks accept both residential and commercial properties as collateral. You can also apply for Loan Against Property if you own the property with other people as long as they are also co-applicants of the loan.

• You repay at your convenience

Banks offer Loan Against Property that is completely customisable to your needs. You can tailor your loan while selecting your loan tenure, amount and your repayment option according to what works best for you. 

How To Apply for Loan Against Property

• Application

• Processing

• Documentation

• Property Verification/Valuation

• Sanctioning of the Loan

• Disbursement