The house you live in, fulfill your various needs in many ways. It gives you shelter, protection, a sense of security, an assurance of stability and most importantly a place to fall at the end of the day. If a house can do so many things, then why don’t you make it pay your bills?
Yes, a house that pays your bill! Not a myth but a truth which can come true via Loan Against Property (LAP). If you have the house in your name and running out of funds or ways to pay your bills or current debts, take a LAP. By mortgaging your house to a bank or NBFC, you can get a loan with easy EMI options and exciting interest rates. LAP is a secured multipurpose loan so you don’t have to disclose your reasons to take the funds from the bank.
You Can Avail LAP for Any of the Following Reasons…
For funding business and expanding your business
To purchase new property/land by mortgaging existing property
To fund emergency medical treatments
To fund higher studies
To fund a vacation
For home renovation or expansion
Know Some Exciting Features Of LAP:
Loan against property is a type of secured loan. You have to mortgage the residential or commercial property for loan against property.
The interest rates on this loan are decided considering various aspects of your profile. Like your monthly salary, income details of self employees or businessmen, amount taken as loan etc. As this is a type of secured loan, banks and NBFC’s offer lower rate of interest.
This is a long tenure loan as the repayment period is as long as 15 years. Banks and NBFCs offer higher loan amount for longer tenure with enchanting interest rates as compared to other loan plans.
You are also supposed to pay all the hidden and extra charges such as processing fee and administrative fee. You also have to pay the bank for property valuation and its processing fee. Many banks ask to pay 1% of loan amount sanctioned.
The process of obtaining loan against property is very quick and hassle free. Some banks approve the loan as quick as within three days.
Mortgage loans prove to be the best way to debt consolidation. That mean you can pay of your multiple debts by bringing them under a singular debt.
You can use your collateral property while repaying the LAPs, unlike gold where the gold ornaments remain with the banks or NBFCs and you don’t get them back until the loan is paid in full.
If the property is owned by partners or directors of a company, it can be taken in the name of that firm.
You can avail loans from 5 lakh onwards against property, if they apply for LAPs. The minimum amount Rs. 10-15 lakh.
To know your eligibility to get a LAP, click here!