Leverage Your Assets for Financial Empowerment with Loan Against Property!
- Maximize Asset Value
- Low-Interest Rates
- Versatile Usage
Loan Against Property (LAP) doesn’t have to be complicated. Discover your residential or commercial property’s hidden potential to fulfil your financial needs with Finior. Get quick approvals, attractive LAP interest rates with minimal paperwork.
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At Finior, we understand your urgent need for finances. Tailoring the best loan against property options from premium banking and non-banking institutions, we ensure fast LAP approval with minimal documentation. Offering a robust response to your immediate needs of consolidating debts or paying extensive medical bills, we even help you avail a loan against property without income proof and ensure competitive LAP interest rates between 8%-25% p.a. Guiding you to the right financial path, we at Finior furnish flexible repayment options via a comprehensive and comparative EMI analysis.
Features and Benefits
Loan Against Property: Features and Benefits
Following are the key features and benefits of a loan against property:
- A loan of up to 70% of the property’s market value is offered.
- Flexible repayment terms make the loan against property rates competitive.
- Facilitates easy repayments through small monthly instalments.
- Quick processing, usually 3 to 4 days with minimal documentation.
- The applicant’s age must be between 21 years to 65 years old.
- Flexible repayment tenure up to 20 years.
- Is available on plots, residential property and commercial property.
- Lower interest rates, starting from 11 percent.
- A loan amount of INR 5 lacs to INR 7.5 crores can be offered based on the property’s market value.
- No additional collateral is required.
- Availability of balance transfer on the existing loan.
- Minimal prepayment penalties may vary from one bank to another.
Loan Against Property Overview
A Loan Against Property (LAP) empowers you to use the funds tied with the property to satisfy any expenses you may have. While the LAP amount offered on the property is determined by its valuation, you have complete discretion over how you spend the funds. Your property serves as collateral for the loan, but you can use it as usual.
In short, LAP is a secured loan provided by banks and financial institutions in exchange for a property pledged as security. The pledged asset can be the applicant’s land, house or commercial property. The property stays as collateral with the credit provider unless the borrower repays the debt amount.
However, the sanctioned funds are relatively higher, as the borrower can acquire a loan against property for up to 70 percent of the property costs. The loan against property interest rates are also lower than other loans, and its repayment terms are flexible.
Loan Against Property Eligibility Criteria
To secure a LAP with utmost ease, you must cope with the lender’s loan against property eligibility criteria. You can also rely on a loan against property eligibility calculator to determine your eligibility for securing a loan. However, the property must be registered in the name of the loan applicant or other family member.
Here’s what you need to be prepared with:
| Age Limit of the Applicant | 21 to 65 years |
|---|---|
|
Employment Status |
Salaried Professional, Self-employed Individual |
|
Annual Income |
At least INR 3 lakh per annum |
|
Work Experience |
1 year to 5 years
|
|
LAP Interest Rate |
9.8 percent to 16.50 percent per annum |
|
Maximum Loan Amount |
70 percent of the property’s market cost or to up to INR 7 crore |
|
Credit Score |
Applicant must have a credit score above 750 |
|
Repayment Time Frame |
15 years to 20 years at maximum |
Factors Affecting Loan Against Property Eligibility Criteria
Below are depicted the factors that affect the loan against property eligibility:
Interest Rates and Other Charges
The loan amount and the repayment tenure determine the loan against property interest rate. Because a loan against property is a secured finance product, it is feasible to negotiate a lower interest rate based on a variety of circumstances.
If you take out a loan for a longer period of time, the interest rate will drop even more. The majority of banks have interest rates that range from 9 percent to 12 percent. To compute approximate values in advance, one can count on loan against property EMI calculator.
In addition to interest rates, you have to pay some nominal charges. The below-depicted table provides a better understanding of the applicable charges:
| Processing Charges | Around 1 percent of the loan amount |
|---|---|
|
Prepayment Charges |
Prepayment charges may vary from one bank to another. Usually, banks charge 2.5 percent of the outstanding amount as prepayment charges. |
|
Late Payment Charges |
1 to 2 percent of the due monthly instalment |
|
Bounce cheque Charges |
May vary from INR 250 to INR 550
|
Documents Required for Loan Against Property
- Bank account statement (last three months)
- PAN card and Aadhaar card
- Residence and identity proof
- Salary Proof (for salaried applicants)
- Scanned copy of property documents
- Income tax returns (last two years)
- Form 16