Are you in need of funds to fulfil your financial goals? Whether it is expanding your business, financing higher education or realising personal aspirations, a loan against property (LAP) can prove to be the ideal financing solution for you. Instead of dipping into your savings, you can leverage your commercial or residential property as collateral to secure a substantial sum of money.
The best part is that you can get a loan against property with a convenient online application process with reputed lenders.
What Is a Loan Against Property?
A loan against property (LAP) is a type of loan that allows you to use your residential or commercial property as collateral. You can get access to significant loan amounts while retaining ownership of your property. A loan against property can come with a repayment tenure of up to 20 years, which means you can repay it comfortably without compromising your monthly budgetary obligations.
The maximum loan amount you can secure depends on your profile and eligibility. Other factors that influence the final loan amount include:
- Monthly income
- Age
- Credit score
- Existing debt burden and monthly financial obligations
- Retirement age
- Credit history
Eligibility Criteria for a Loan Against Property
The following borrowers are eligible to get a loan against property:
- Individuals/proprietorship concerns
- Partnership firms
- Private limited companies
- Closely held public limited companies (not listed on any stock exchange)
Eligibility Requirements for Salaried Individuals
The following are the eligibility criteria for salaried applicants:
- Individuals permanently employed in a public sector undertaking, government undertaking, multi-national company, listed public limited company, or a well-known private limited company.
- The applicant must be at least 21 years old.
- At the time of loan maturity, the applicant’s age should not exceed their retirement age.
Eligibility Requirements for Self-Employed Professionals and Non-professionals
The following are the eligibility criteria for self-employed applicants:
- Professionals, including doctors, chartered accountants, cost accountants, architects, engineers, company secretaries, and CFAs (Chartered Financial Analyst) can apply.
- Any individual who files Income Tax returns can apply.
- The applicant must be at least 21 years old.
- At the time of loan maturity, the applicant’s age should not exceed 70 years.
Essential Documents for a Loan Against Property Application
The following documents are typically needed when you apply for a loan against property online:
- Application form with a photograph
- KYC documents: Valid identity/residence/signature proof
- Proof of income: Income Tax Returns/salary slips
- Latest six months’ bank statements of the main current/savings/cash credit/overdraft account
- A copy of all property documents of the property you wish to mortgage for the loan
- Processing fee cheque
How to Apply for a Loan Against Property Online
Step 1: Visit the website of the chosen bank or authorised financial lender
Step 2: Understand the eligibility criteria and the documents required for the application.
Step 3: Complete the online application form accurately and upload the supporting documents.
Step 4: The loan processing team will now contact you for the verification process.
You will receive the loan amount in your account after the successful verification of your online application.
In Summary
A loan against property (LAP) is an ideal solution for accessing funds for immediate use without letting go of property ownership. With an easy online application procedure, you may easily and conveniently apply for a LAP. Just make sure to meet the eligibility criteria and keep the required documents ready before you decide to get a loan against property.
So, step forward, and apply for a loan against property online to achieve your financial goals