A loan against property (LAP) also called a property loan or mortgage loan is a loan that Banks and NBFCs in India give over your property. This property must be owned by you and only then can you apply for it. LAP is given on residential, commercial and industrial properties.
Like every other type of loan, Banks and NBFCs have set a loan against property eligibility criteria that you must fulfill if you need this loan. These criteria are different for salaried individuals and self-employed professionals. Income does play an important role but the most important factor will be your property.
When you have all property documents ready along with your Personal and Banking KYC, it becomes easier for the bank to decide on a loan against the property interest rate on your property. You must remember that Banks and NBFCs will evaluate your property value and only then will the loan amount be decided.
But why take this loan? Is it remotely helpful to any person?
Yes, Yes and a million times yes!
There are tons of benefits that get unlocked when you apply for a LAP. To make it easier for you, we will list a few amazing benefits that will make you realize the importance of your property.
1. You continue to be the owner of your property:
When you apply for a loan against your property, the Bank will provide the loan amount and will hold the original ownership documents to your house until you pay off the loan amount. Even though they have the papers, you will still continue to be the owner of the property.
2. You can get higher large amounts:
A mortgage loan is popular with the masses because you can get a higher loan amount. Yes, you can get anywhere between 45-70%* of your property’s value as the loan amount. So if your property’s value is 30 lakhs, you can get up to 21 lakhs as the loan amount. Isn’t that great?
3.Lower Interest Rates:
Since this is a secured type of loan where the property is kept as collateral, interest rates for such a secured loan are lower than most loan products. Hence you end up paying lower EMI amounts.
4. Best choice for debt consolidation:
A mortgage loan is considered to be the best choice for debt consolidation. This is because you can use a large amount to consolidate all your debts. Not only that, but you can also utilize these funds to satisfy multiple needs.
Here are some of the benefits of taking a loan against property. If you’re looking for the best deal on a loan against property, Click Here