Loan against property (LAP) is also known as ‘Home Equity Loans’ and is a kind of loan against the security of one’s property. Loan against Property is considered to meet the financial needs of a person who before now has a house, which is free from any burden.
How much loan can you get?
To calculate eligibility of loan against property, a lender will look at a certain percentage of the market value of your property and your repaying capacity. The lender will also look at your repaying capacity by taking into account your income minus other equated monthly installments. There is also an age limit to take this loan; minimum is 21 years and maximum 60 years. The minimum loan amount you can get is Rs.5 lakh and maximum depend on upon the client.
What are the documents you required?
- ID proof (PAN Card, Driver’s license, Voter ID, Passport, Aadhar)
- Address proof (Electricity bill, Telephone bill, Ration card, Bank statement, Credit card statement)
- Passport Size Photo
- 3 month’s Salary slips
- 3 month’s Bank statement
- Last 2 years Form 16
- Sale Agreement
- Property documents
- Receipt of Booking/Advance payment (If any)
What’s the interest rate and tenure?
Ever since loan against property are secured loans, since you credit your property with the lender to gain, it is cheaper than personal loans. The tenure of the loan against property can go up to 10-15 years.