Apply For Loan Against Property
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Loan Against Property
Mortgage Loan (LAP)
Collateral
The property offered as collateral can be residential, commercial, or industrial real estate owned by the borrower. The property's market value typically determines the maximum amount that can be borrowed. Lenders usually require the property to be free of any legal disputes or encumbrances.
Interest Rates
Interest rates for loans against property are usually lower compared to unsecured loans like personal loans since the loan is secured by the property. The interest rate may be fixed or floating, depending on the lender and the borrower's preference.
Loan Amount
The loan amount that can be availed against the property depends on factors such as the property's market value, the borrower's income, repayment capacity, and the lender's policies. Generally, lenders may offer loans ranging from 50% to 70% of the property's market value.
Loan Tenure
Loan against property typically offers longer repayment tenures compared to other types of loans, often ranging from 5 to 20 years. Borrowers can choose a repayment tenure that suits their financial situation and repayment capacity.
Purpose
Borrowers can use the funds obtained through a loan against property for various purposes, such as business expansion, debt consolidation, medical emergencies, education expenses, home renovation, or any other personal or business needs.
Risk
While loans against property offer lower interest rates and longer repayment tenures, borrowers should be aware that defaulting on repayments can result in the lender seizing and selling the pledged property to recover the outstanding amount. Therefore, borrowers should ensure timely repayment to avoid the risk of losing their property.
Type of loan against property
Type of loan against property depends upon types of property, an individual want to mortgage with bank or NBFC. As per the need of the customer banks or NBFC offers different types of loan against property at lower rate of interest.
Residential Property Loan
This type of LAP is availed against residential properties, such as self-occupied houses, apartments, or plots of land owned by the borrower.
Commercial Property Loan
Commercial property loans are secured against commercial properties, such as office spaces, shops, warehouses, or industrial units owned by the borrower.
Loan Against Rental Income
In this type of LAP, borrowers pledge their property rented out to tenants as collateral. Lenders consider the rental income generated from the property as part of the borrower's repayment capacity.
Loan Against Land
Borrowers can avail loans against vacant plots of land owned by them. The loan amount is typically determined based on the market value of the land.
Loan Against Industrial Property
This type of LAP is secured against industrial properties, such as factories, manufacturing units, or industrial land owned by the borrower.
Top-Up Loan Against Property
Borrowers who have an existing LAP can apply for a top-up loan against the same property, provided they have repaid a significant portion of the original loan and the property's market value has appreciated.
Loan Against Property for Business Expansion
Business owners can avail loans against their residential or commercial properties to fund business expansion, working capital requirements, or other business-related expenses.
Documents Required
✓ Employment details - ID Card, last 3 months’ salary slips(salaried) / ITR returns along with the income generated by the applicant and the business entity (CA attested) for the last three financial years ( self-employed ).
✓ Bank account statements for the last 6 months (salaried)/ 12 months (self-employed).
✓ Document of proof of business of minimum 5 years (for businessmen/ self-employed professionals).
✓ Form 16 (Part A & Part B) and filed Income Tax Returns (ITR) for the past two years.
Property Documents
✓ Encumbrance certificate
✓ Plot Title Deeds
✓ The local authority has sanctioned a copy of the plan.
Loan Documents
✓ Exisiting Home Loan Sanction Letter
✓ Home loan foreclosure letter from existing bank or NBFC
✓ List of documents mortgaged with the existing bank or NBFC
✓ 12 Month up to date bank statement showing repayment of the loan
✓ Copy of Sanction Letter
✓ Up to date loan account statement
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