Your Loan Against Property eligibility is determined after looking at the following:
A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 50% to 70%
Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
Loan against Property can be taken for following purposes:
You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land.
This criteria will vary from one bank to another. However, from all the host of factors, the common factors that all banks look at are:
Interest rates on loan against property range from 8.75% to14% , and the loan tenure can be up to 15 years.
The individual takes the loan by mortgaging the house property
One of the cheapest retail loans after home loans; usually about 8.75%-12%
Since the rate of interest is lower, frequently LAP Equated Monthly Installments (EMI) turn out cheaper
Maximum loan eligibility is determined primarily by the value of the property and income
Maximum loan tenure for LAP is up to 15 years (180 months)
Secured loan
An individual can take a personal loan for personal use without any security or guarantor
Higher interest rates compared to LAP; usually issued at interest rates in the range of 12%-20%
Since rate of interest is high, Equated Monthly Installments (EMI) for personal loans are high
Maximum loan eligibility is determined primarily by an individual's income
Maximum loan tenure for personal loan is up to 5 years (60 months)
Unsecured loan
Most banks and financial institutions typically require the following documents. However, this list may vary from bank to bank.
Application form with photograph
Identity and Residence Proof
Latest Salary-slips
Form 16
Last 6 months bank statements
Processing fee cheque
Application form with photograph
Identity and Residence Proof
Education Qualifications Certificate and Proof of business existence
Last 3 years Income Tax returns (self and business)
Last 3 years Profit /Loss and Balance Sheet
Last 6 months bank statements
Processing fee cheque
Application form with photograph
Identity and Residence Proof
Education Qualifications Certificate and Proof of business existence
Business profile Last 3 years Profit /Loss and Balance Sheet Last 3 years Income Tax returns (self and business)
Last 6 months bank statements (self and business)
Processing fee cheque
A loan against property is one of the best ways to raise money. The only disadvantage of such a loan is that if the borrower is not able to pay the loan fully, the bank or the financial institution can take possession of the mortgaged property. Base your decision on your repaying capabilities