Loan Against PROPERTY
Loan against Property (LAP), also known as mortgage loan, allows consumers to raise funds by leveraging their residential, commercial or industrial properties. Like unsecured personal loans, LAP can also be availed for meeting both personal and business needs other than speculative purposes. Banks and HFCs offer loan against property starting at low interest rates for tenures of up to 20 years. The loan amount for LAP can go up to 70% of the property’s market value, depending on the lender and the credit profile of the borrowers. Many lenders also offer Lease Rental Discounting (LRD) facility, which allows consumers to avail loan by pledging the rental receipts of their tenants.
Eligibility
To apply for a loan against property, you must meet the required eligibility criteria. While the eligibility varies from provider to provider, below are some general conditions that must be fulfilled to apply for loan against property:
| Residential Status | Resident Indian and Non-resident Indian |
| Minimum Age Limit | 18 years |
| Maximum Age Limit | 70 years |
| Employment Type | Salaried, Self-employed Professional and Self-employed Non-professional |
| Minimum Salary | At least Rs. 12,000 per month |
| Net Annual Income | At least Rs. 1.5 lakh p.a. |
| Work Experience | At least 1 year in the current organisation |
| Eligible Loan Amount | Up to Rs. 25 crore |
| LTV Ratio | Up to 75% of property value |
| Credit Score | Preferably 750 and above |
| Property Type | Residential, Commercial and Industrial |
Before applying for mortgage loan, use loan against property EMI calculator to know how much EMI you can afford on a certain loan amount, interest rate and tenure. Your loan against property EMI should not put strain on your monthly expenses. Once you find the EMI, loan amount and tenure that you are comfortable with, click the Apply Now button to proceed for the loan against property application process.
REQUIRED DOCCUMENTS
- Proof of Identity (Passport Copy /Voter ID card /Driving License /PAN Card)
- Proof of Residence (Ration card /Telephone Bill /Electricity Bill /Rental agreement /Passport copy /Bank Passbook or Statement /Driving License)
- Proof of Age (PAN Card /Passport /any other certificate from a statutory authority)
- Proof of Income for Salaried (Copy of Form 16, latest payslips, IT returns (ITR) of past 3 years, and investment proofs (if any)
- Proof of Income for Self Employed (Details of ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm, Business License Details and Proof of Business Address)
- Property-related Documents (Title Deeds including the previous chain of the property documents, Nil Encumberence Certificate on the concerned property, approved plan [if applicable])