Loan Against Property
Loan Against Property - suvidha consultancy services
A Loan Against Property (LAP) is a secured loan where borrowers can leverage their residential or commercial property to obtain financing. This type of loan allows individuals or businesses to access funds while retaining ownership of the property, making it a popular choice for various financial needs, including business expansion, education, or medical expenses.
Loan Against Property (LAP)
A Loan Against Property (LAP) is a secured loan availed by placing your property as collateral with the bank or lending institution. This allows you to unlock the potential value of your property to meet large expenses such as your child’s education, business expansion, or even debt consolidation.
Features and Benefits of LAP
Higher Loan Amount: Get a significant loan amount based on the valuation of your property.
Long Tenure: Repay the loan over an extended period, which can range from 5 to 15 years or more.
Competitive Interest Rates: Since LAP is a secured loan, interest rates are generally lower than unsecured loans.
Multipurpose Loan: Use the loan amount for any personal or business requirement.
Quick and Easy Processing: With minimal documentation and swift approval processes, get your loan disbursed quickly.
Quick Apply
Who Can Apply?
- Salaried or self-employed individuals.
- Age: 21 to 65 years.
- Creditworthy applicants with a steady income.
Note: The specific eligibility criteria may vary based on various factors. Please contact our team for a detailed breakdown.
Required Documentation
- Latest salary slips to prove your income source.
Bank Account statement for either 3 months or 6 months in some other cases.
Documents to prove your identity and address such as Aadhar Card, Voter ID Card, PAN Card, etc.
Copy of the property that you wish to mortgage.
ITR filings and records to prove that you have no pending dues and is a law-abiding citizen.
Passport size photographs.
Frequently Asked Question
You can mortgage both residential and commercial properties. Some banks also accept land as collateral
Yes, you can continue to reside or use your property even after mortgaging it. The lender merely holds the property title as security until the loan is repaid.
If you default on your repayments, the lender has the right to take possession of the mortgaged property and sell it to recover the loan amount.
The loan amount is typically determined by the current market value of the property. Lenders usually finance up to 60-70% of the property’s market value.
This depends on the lender. Some may charge a prepayment fee while others may not, especially if you pay from your own sources.
A home loan is taken to purchase or construct a house. LAP, on the other hand, is availed by mortgaging an existing property to secure funds for other personal or business needs.
Yes, you can avail a LAP on a property with an ongoing home loan. However, the eligibility and the loan amount will be determined after considering your outstanding home loan amount.
