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 70% of the market value of your property depending on the lender’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.
Loan against Property is given on the below mentioned property types and the percentage of loan you can get is given below.
Self-Occupied –70% of Property Value
Vacant – 55% of Property Value
Rented – 55% of Property Value
Self-Occupied – 50% of Property Value
Vacant – 40% of Property Value
Rented – 40% of Property Value
This varies from Bank to Bank by 5 – 10% of the above mentioned percentages.
In order to calculate how much you would be estimated to pay, most banks use a formula which is given below.
All loans are not created equal, personal loan has become a great option for people to use.
Some of the eligibility Criteria when applying for a Loan Against Property Are as Follows
Minimum 21 years
Your property valuation determines the amount of loan you are eligible for.
Your loan would be also depends upon your existing loans.
The more is your work experience and the more you can lend.
Banks need income and financial documents to check loan eligibility.
The number of dependents in your family would also cross checked.
The eligibility for LAP is calculated on basis of both the percentage of property value that you own and the amount of income you have to enable you to return the EMI on the Loan. So you can get Loan against property up to annex % of property value and the net amount that you earn after other EMI has been deducted from your net income.
Other Eligibility Criteria Revolves Around the Maximum Age of The Person Applying for The Loan
For Salaried employees – 60 Years
For Self-Employed – 70 Years
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
|Salaried Customers||Self Employed Professionals||Self Employed Businessman|
|Application form with photograph||Application form with photograph||Application form with photograph|
|Identity and Residence Proof||Identity and Residence Proof||Identity and Residence Proof|
|Latest Salary-slip||Education Qualifications Certificate and Proof of business existence||Education Qualifications Certificate and Proof of business existence|
|Form 16||Last 3 years Income Tax returns (self and business)||Business profile|
|Last 6 months bank statements||Last 3 years Profit /Loss and Balance Sheet||Last 3 years Income Tax returns (self and business)
Last 3 years Profit /Loss and Balance Sheet
|Processing fee cheque||Last 6 months bank statements
Processing fee cheque
|Last 6 months bank statements (self and business)
Processing fee cheque
Now apply for a Car Loan online, All you need to do is provide your details below application form.