Request a Call Back

What is Loan Against Property?

Loan against property is a type of secured loan availed against a residential or commercial property kept as collateral with the lender. Because the funds come with no end usage restriction, borrowers can utilize the funds for various purposes like wedding, business expansion, children’s education, etc. The loan is given at a particular percentage of market rates of the property, mostly around 70% – 90%. Loan against property(LAP) is the component of secured loan group where the guarantee is allocated by the borrower by using property as security. Loan Against Property is additionally referred to as Mortgage Loan.

What are the types of property you can take Mortgage Loan?

A loan against property may be a convenient choice to finance all high-end expenditures for business or personal purposes. You may mortgage various Loan Against Property types as collateral to avail funds of up to Rs. 3.5 Crore.

Following are a number of the collateral variants lenders consider with their mortgage loan product types –

Self-occupied residential property, including house, apartment, flat, etc.
Commercial property like an office block, shops, malls, complexes, etc.
Rented residential properties are also accepted as Property Loan types. 4. A plot of land under your ownership is treated as one of the mortgage loan types.

Loan Against Property (LAP) EMI:

LAP EMI is a defined amount you’ll pay for repayment of your loan per month till the loan is totally paid. However, the EMI amounts remain the same, and each month, a part of interest keeps coming down and the principal keeps on increasing, except when there is an increase in the rate of interest. In India, LAP tenure ranges from 5 years to a maximum of 18 years. Longer the tenure, lower the EMI. The simplest way of paying an EMI of Mortgage Loan is through ECS in favor of the bank. It’s not necessary to possess a bank account within the same bank from whom you’ve availed the loan. Post-dated cheques (PDCs) and by demand drafts can be included other instruments, although these are rarely used nowadays.

How is LAP EMI calculated?

1. Loan amount – Higher the loan amount, higher are going to be the EMI.
2. Rate of interest – Lower the loan rate of interest, lower the EMI.
3. Loan Tenure – Longer the loan tenure, smaller the EMI.

Who qualifies for Loan Against Property?

1. Your income, savings, debt obligations are considered.
2. Cost/value of the property against which you would like loan are considered.
3. Your track record of other loans, credit cards repayments are considered.

Documents necessary for Loan Against Property(LAP) or Mortgage Loan:

Document required for Loan Against Property

PAN CARD/PASSPORT
PROCESSING FEE CHEQUE
BANK STATEMENT
LAST 3 YEARS BALANCE SHEET
LATEST OD/CC SANCTION LETTER
CREDIT SCORE
AADHAR CARD/PASSPORT
PROFIT & LOSS STATEMENT
COPY OF PROPERTY DOCUMENTS
INCOME TAX RETURN OF LAST 3 YEARS
PROOF OF BUSINESS

Advantages of Loan Against Property

Lower interest rates as its secured loan.
The loan amount is often used for Business working capital.
Greater Credit Eligibility.

Working Process

Make Enquiry

Share your Contact Details and receive a free consultation.

Make Payment

Make Online or Offline Payment for your Order.

Submit Documents

Submit documents for your order using an online dashboard.

Work Completed

Work will be completed by us and updates delivered online.

Testimonials

We were looking for a reliable business license Consultant in Patna to renew our Fire License. We finally found Corporate Legal Guru. We are very happy with their proactive support and timely services.

Mc. Donalds

They are doing our GST, Income Tax and company compliance works from the last 5 years.

Harilal Sweets Shop

I am very happy with the service of Corporate Legal guru. They have a team of very knowledgeable professionals and they give dedicated experts to every customer.

Manoj Kumar

Best Chartered Accountant And Company Secretary Firm In Bihar And Jharkhand.

Ved Prakash