Flexible Repayment.
Low Interest Rates compared to the personal loan.
Simple, Easy and Reliable.
Quick Disbursal of Loan.
The title of the property needs to be clear and marketable. Your bank lends an amount equal to about 50-60% of the value of the pledged property.
You can avail loan against property for self-occupied residential properties or even if you have rented it out to a tenant. LAP can be availed against an empty plot of land.
If you are salaried, you need to have a minimum age of 21-24 years and your maximum age can be around 60 years at maturity of the loan.
If you are self employed, your maximum age can be 65 years at the maturity of the loan.
You need to have a minimum work experience of 1-5 years if you are salaried, and you need to be in business for at least 2-5 years if you are self employed.
Past credit history plays a very important role in getting your loan against property sanctioned.
The Cibil score plays a very important part and if your past credit history is poor, your loan is liable to get rejected.
Loan against Property can be availed on land/property which has multiple-owners. All co-owners must be co-applicants for the loan.
Loan against Property can be availed against a commercial property.
If property mortgaged is under-construction, the bank will disburse loan amounts in installments. Interest will be charged only on the amount which has been disbursed. This is called the Pre-EMI. After full loan has been disbursed, you have to pay regular EMIs.
Loan against property can be used to expand your business.
This loan can be used for an urgent medical emergency.
Loan against property can be used to renovate/expand or repair house or property.
This loan can be used for son/daughters marriage.
Loan against property can be taken to send your child abroad for higher education.