All About Loan Against Property

Loan against property, as the name suggests, is applicable for individuals applying for a loan for purchase of a land/property, be it for commercial or residential interests. This comes off as a better option during times of financial crisis. Loan against property remains one of the most sought after loans in India, mainly due to the ever increasing real-estate prices. A take-over of existing loan, with options of refinancing is also made available by most banks.

What purpose can one use loan against property funds for?

  • Funding business and working capital needs of individuals, partnerships, private companies and SME’s
  • To purchase new property by pledging existing property
  • As lower cost alternative to personal use and uses such as marriages, education, vacation, home renovation, medical emergency

Benefit of availing Loan against Property (LAP) instead of other loans?

  • As loan against property is secured against property, banks offer lower rate of interest compared to unsecured business loans or personal loans
  • Loan tenure can be up to 18 years leading to lower EMI compared to unsecured loans where loan tenure can only be up to 5 years
  • No additional collateral or guarantee is required
  • Loan can be taken in name of company/ firm even if the property is owned in individual name of partners/ directors

Loan against property Details

Find Home Loan details of Amount Funded, Interest Rate, Prepayment charges, Processing Fee, Tenure, etc.,

  • Loan against property Amount Funded
  • Up to 40% to 75% of Property Value
  • Loan against property Tenure
  • 5 year to 15 years
  • Guarantor requirement
  • Not required
  • Interest Rate (Monthly Reducing Balance)
  • 10.50% to 16%
  • Processing Fees
  • 1% to 2% of Loan Amt
  • Prepayment charges
  • 0% to 4% on outstanding loan amount
Select Loan
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Date of Birth(dd/mm/yyyy)
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Required Loan Amount
Salaried
 

List of Loan Against Property Documents Required

If you are looking for a Home Loan from a bank in India, you would require the following Home Loan Documents to process your Home loan application.

List of Loan Against Property Documents Checklist for Salaried Person

  • Photo Identity Proof
  • Residence Address Proof
  • Bank Statement: Latest 1 year statement where your salary is getting credited
  • Property Documents: Property documents to be submitted based on the purchase of your dream home.
  • Job Continuity Proof:
  • Income Proof: Latest 6 months Salary Slips and Last 2 Year Form 16.
  • Photo Identity Proof
  • Copy of agreement executed / Sales Deed.
  • Share Certificate.
  • Latest Maintenance Bill.
  • List of documents & sanction letter given by Existing Banker (If Applicable).
  • Advance Processing Cheque required to process loan documents for sanction.
  • 2 passport size colour photograph
  • IF PROFESSIONAL: Please submit your Professional Degree Certificate.
  • IF EXISTING LOANS: If any existing loan, please submit sanction letter, Payment Track Record.

List of Loan Against Property Documents Checklist for Self Employed Business Person

  • Photo Identity Proof
  • Residence Address Proof
  • Bank Statement: Latest 1 year statement where your salary is getting credited
  • Property Documents: Property documents to be submitted based on the purchase of your dream home.
  • Office Address Proof
  • IF PROFESSIONAL: Please submit your Professional Degree Certificate.
  • Business Existence Proof
  • Copy of agreement executed / Sales Deed.
  • Share Certificate.
  • Latest Maintenance Bill.
  • List of documents & sanction letter given by Existing Banker (If Applicable).
  • Advance Processing Cheque required to process loan documents for sanction.
  • IF EXISTING LOANS: If any existing loan, please submit sanction letter, Payment Track Record.
  • Income Proof: Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc.,
  • 2 passport size colour photograph

How does the lending bank decide on the amount I can get as Loan against Property?

Can there be a co-applicant for loan against property? If yes, who can be co-applicant?

What are the processing fees for such a loan?

What is the tenure of Loan against Property?

How to repay my Loan against Property?

What security will I have to provide?

Can I repay the loan ahead of schedule?

How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?