ABOUT LAP

LAP stands for “Loan Against Property”. This loan is availed by keeping our property as collateral.. This loan is also known as “Mortgage Loan” .In more detail, it is such loan where we accord our property to the bank or loan lending company as security to repay the loan. Banks never conducts the likelihood of going in casualty so they hold something as security and after its valuation; they review their factors and furnishes the loan. In case of failure of customers re-paying, they use those properties to cover the loaned amount. The value of property decides the amount of loan. Bank and Loan lending companies furnish Loan against Property to both salaried and self-employed business. In this type of loan either commercial or residential property can be accepted as collateral by a lender.

Mortgage Loan can be used for the following purposes:-

– For Business expansion

– For your child marriage , for higher studies of your child

– This can be used for  medical purpose as well 

– For holidays, vacations etc

TYPE OF LAP AND PERCENTAGE OF LOAN ONE CAN GET
  • For residential property: 55% to 65%
  • For commercial property: 40% to 50% (Varies according to bank by 5%  to 10%)
  • For salaried Individuals: 60% ( EMI per lac)
  • For self-employed individuals: 65% (EMI per lac)
Eligibility criteria For Mortgage Loan:

Age Limit: – Minimum age is 21 years and maximum age is 60 years to avail this loan.

Monthly Income: – Monthly income for mortgage loan should be Rs 25,000 for salaried person and for self employed minimum annual income should be Rs 3lakh and above.

Tenure: – Loan tenure which one can get varies from 20 years to 30  years 

Loan to Value Ratio (LTV) –   LTV ratio is different for different banks. Banks generally provide mortgage loan based on market value of property or on registered value . LTV varies from 50% to 75% based on property type and its value.

CIBIL score :– CIBIL score is about your report of the credit history. This report helps to know about the repayment track of the customer. So, the bank or loan lending company can ensure that you can repay the loan.

Property Eligibility:- Rented /Self occupied/vacant residential, commercial can be considered as collateral .

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COMPARISON OF RATES OF INTEREST IN LAP

Bank / NBFC

Rate of Interest

Min – Max Amount 

Min – Max Tenure

ICICI  Bank 11.25% onwards* 20 Lakh  Max 1-5 Years
HDFC Bank 15.99% onwards* 50,000 min to 40 Lakh max 1-5 years
IDFC Personal loan 11.5% onwards* 2 lakh Min – 25 lakh Max 1-5 Years
Kotak Mahindra 11.25% onwards* 50,00 min to 25 Lakh Max 1-5 years
Axis Bank 15.75% onwards* 50,000 Min to15 Lakh Max 1-5 years
Citi Bank 10.99 % onwards* 25,000 min to 30 Lakh max 1-5 years
Bajaj Finserv 12.99 % onwards* 25,000 min to 25 Lakh Max 1- 5 years
Tata Capital 11.75% – 18.00%* 75,000 min to 20 Lakh  Max 1-6 Years

* T&C applied and these terms vary from time to time 

REQUIRED DOCUMENTS

For Salaried Applicants

  • Identity and Address proof
  • Residence Ownership proof
  • Proof of income
  • Proof of Job Continuity
  • Bank statement of last 6 months
  • Investment proof of fixed assets, fixed deposit
  • Copies of all property documents
  • Advanced processing cheque

 

For self-employed Businessman

  • Identity and Address proof
  • Residence ownership proof
  • Office address and ownership proof
  • Proof of business existence
  • Proof of income
  • Bank statement of last 1 year
  • Copies of all property documents
  • Advanced processing cheque
  • Passport sized, coloured photograph
  • Investment proof of fixed asset, fixed deposit if any
  • Professional Degree Certificate

 

Eligibility Criteria for availing Loan Against Property

  • For salaried employees the maximum age to avail this loan is 60 years.
  • For Self-Employed individuals the maximum age to avail this loan in 70 years.
  • Stability of income
  • Property attributes

 

The phenomenon for availing the Loan against property

  • Application Submission
  • Processing
  • Documentation
  • Property verification / validation
  • Sanctioning of the loan
  • Disbursement

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