Monetary requirements pertaining to business growth, medical emergency or higher studies can arise anytime. Such demands can be settled smoothly if an individual owns a property. Be it a residential or a commercial property, it serves as an asset that can be used to obtain a loan against property at times of such unforeseen emergencies.
Owing to its features and advantages, the LAP market is expected to expand at a CAGR of more than 14% and reach USD 875.87 billion by FY2026. Therefore, willing applicants must be aware of all the necessary details related to LAP for a hassle-free application.
Features and benefits of loan against property
A loan against property acts as a financial tool and helps to achieve personal and business goals quickly. As long as an individual legally owns the property, the chances of approval become higher. For more information click here Capital Valley
Here is the list of advantages LAP offers-
- High-value loan amount
As LAP is a secured form of loan, lenders offer a high amount based on the type of mortgaged property. However, the amount may vary from lender to lender.
- Quick disbursal
If an applicant meets all the required eligibility criteria and provides the essential documents, lenders disburse the amount instantly.
- Flexible repayment tenor
Lenders offer flexible repayment tenor based on the employment profile to ensure that the applicant can repay the loan amount on time.
- Convenient balance transfer with top-up loan facility
Several financial corporations allow borrowers to transfer their existing LAP and opt for an additional top-up loan facility. This way, it becomes easy to meet all the financial needs conveniently.
Apart from these, reputed financial institutions provide pre-approved offers on financial products like loans against property, home loans etc., to simplify and accelerate the application process. Individuals can check their pre-approved offers by submitting their names and contact details.
Nonetheless, applicants need to meet a few eligibility criteria set by their respective lenders to carry on with the application procedure hassle-free.
Loan against property eligibility criteria
On meeting the below-listed parameters, applicants will get faster access to the funds. The list may vary from lender to lender-
- For salaried applicants
- Borrowers must be employed by a public or private organisation or an MNC.
- Only individuals with residence and property in Delhi, NCR, MMR, Mumbai, Hyderabad, Chennai, Bengaluru, Ahmedabad and Pune are eligible.
- For self-employed applicants
- Applicants must have a steady income profile.
- The applicant’s city of residence and property should be in Indore, Bengaluru, Chennai, Pune, Vijayawada, Surat, Madurai, Nagpur, Lucknow, Delhi, NCR, Mumbai, Ahmedabad, Hyderabad, Jaipur and Cochin.
Prospective borrowers can use an online eligibility calculator to verify if they are qualified to opt for the financial product or not. One has to enter the following details for the same-
- Age
- Profile
- City of residence
- Minimum monthly income
- Value of the property
Further, to get a fair idea regarding the monthly instalments, individuals can use a loan against property EMI calculator available on the official websites of leading financers.
Documents required
The list of documents essential to obtain a loan against property is indicative. Lenders may ask for additional information if required.
Here is a basic set of documents that are necessary for loan approval-
- For salaried individuals
- Identity and address proof
- PAN card
- Aadhaar card
- Voter ID
- Driving license
- Passport
- Utility bills like telephone or electricity invoice etc.
- Employment proof
- Identity card issued by the employer
- Income portfolio
- Last 3 months bank account statement
- PAN Card or Form 60
- Income tax returns
- Latest payslips
- Property records
- Photocopy of property documents that is to be mortgaged
- Title credentials as needed by the legal team
- For self-employed individuals
- Identity and address proof
Same as salaried applicants
- Employment proof
- Partnership agreement
- Business registration certificate etc.
- Income proof
- PAN card or Form 60
- Income tax returns
- Business bank account statements of last 6 months
- Balance sheet
- Profit and loss details
- Property records
Same as salaried applicants
Prospective borrowers can visit their preferred lender’s official website to know about other details like loan against property interest rates, processing fee, penal interest, secure fee and more. Nevertheless, it is wise to first compare different loan against property options offered by lending institutions and then make an informed choice.
