Loan Against Property

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 – 

1. Self-occupied residential property, including house, apartment, flat, etc. 
2. Commercial property like an office block, shops, malls, complexes, etc.
3. 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:

•  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.