What is Loan Against Property?
LAP are a easy means to access funds at interest rates which are lower than unsecured
loans .To avail LAP, you offer an existing property as a security or collateral
against which the lender( Bank/ NBFC/ Housing Finance Co) gives you a loan. The
current market value of the property determines what loan you can avail against
the property. LAP allow property owners to leverage the value of their existing
properties to raise funds.
Loans against property may be availed on:
• Residential properties
• Commercial Properties
• Industrial properties
• Plots
Pricing for LAP is higher than Home loans but cheaper than personal or other unsecured
loans.
Most institutions lend upto 80% of the value of the property, provided the borrower
can demonstrate the ability to pay the installment for such a loan.
Eligibility calculation for Loan Against Property
Your eligibility is determined after looking at the following:
1. The current market value of your property and its current status.
2. Your current Income
3. The nature and continuity of your employment
4. Your current obligations i.e. the other Installments ( EMIs) you are currently
paying, the number of credit cards and credit limits you have or use
5. Your past credit history
6. The purpose of availing such loans is also discussed with the lender and may
have a bearing on the loan sanction.
Apply for Loan Against Property