Loan Against Property
Property is the most important asset of an individual – In Hard time’s it can be more than just an asset to you – Now you can unlock the power of your property. You can easily avail loan offered against mortgage of the property with less interest rates and longer easy repayment options.
Snapshots of Loan Against Property
- Simple & fast Documentation.
- Longer Tenure of 10 to 15 years.
- All Approved Residential, Commercial and Industrial property are accepted for this loan.
- The loan amount depends upon the value of the property.
- This loan is EMI based for fixed tenure with both fixed and floating options.
- Some lenders offer overdraft facility also.
- The borrower must have property in his or her name to apply for this loan.
- This loan can be used for expanding your business, your dream wedding, for your child’s higher education or urgent medical treatments or any other legitimate purpose.
- Extra money from an idle un-utilized property papers can provide you handsome money on lower interest rates with easy repayment options
Loan Against Property has some added advantages
- It is cheaper than personal loans and for higher tenure with lower EMI.
- It is both EMI based & overdraft Loan facilities available.
- It is offered both for salaried and self-employed with easy and hassle-free documentation
- Your principal amount gets reduced over a period of time.
Who can avail this loan?
Salaried , self-employed non-professionals, and self-employed professionals, Business entities can apply for a Loan against property , provided they have ownership of a property with a clear title as per the norms of the lending institution and after fulfilling the required eligibility criteria.
HL is availed to finance a fresh home/ plot purchase or home construction while LAP is availed against a property which is already owned.
HL is availed against a residential property while LAP can availed against residential, commercial or even an industrial property.
The rates and fee for a LAP is higher than that of HL
The end use of HL is only for property purchase, while LAP funds can have multiple end uses.
Loan against Property can be availed against residential, commercial, and industrial properties.
Loan Against Property can have various uses.
- Business Expansion
- Child’s Education
- Medical Treatment
- Marriage Purpose
- Repairs and renovations
A top up loan is primarily a loan extension to an existing Home Loan. It is typically availed to meet some renovation or reconstruction expenses.
A Higher Loan Amount: Typically, an LAP may offer a higher loan amount than a Top-up Loan.
Availed on Different Property: While an LAP can be availed against a different Residential or Commercial property, A Top-up Loan may only be taken against the property already in question. This flexibility allows you to avail of a higher loan amount and spread your liability.
Longer tenure: An LAP can be availed for a long term than a Top-up Loan.
Yes, you can prepay your LAP with charges as applicable by the financer.
Yes, many banks offer LAP to NRI’s provided the property offers as collateral is in India and at the location where the financer has its presence.
Yes, you can. All the property owners will have to be co-applicants to the loan.
Yes, the property to be mortgages needs to be insured against natural calamities and Fire for the tenor of the loan.