Loans Against Property – An Overview
Loans against property (LAP) are secured loans where you can borrow money by mortgaging your property, either residential or commercial. These loans come with lower interest rates and longer repayment tenures compared to unsecured loans.
Lower Interest Rates: As the loan is secured, banks offer lower interest rates compared to unsecured loans.
Higher Loan Amounts: You can get a larger loan amount based on the value of the property.
Flexible Repayment Terms: LAPs come with flexible repayment options, allowing you to repay the loan over an extended period.
Documents Required for Loans Against Property
The following documents are generally required to apply for a loan against property:
PAN Card of the Applicant
Aadhar Card or Address Proof
Income Proof (Salary Slips, Bank Statements, ITR)
Property Documents (Title Deed, Sale Agreement, etc.)
Photographs (Passport Size)
Processing Fee Cheque
Eligibility for Loans Against Property
Eligibility for loans against property is determined based on factors like the property’s market value, the applicant's income, credit score, and repayment ability.
Frequently Asked Questions
- What is a Loan Against Property?
- How Much Loan Can I Get Against My Property?
- What are the Risks Involved in a Loan Against Property?