What are things to check for Loan against Property?
- LAP

What are things to check for Loan against Property?

Loan against property is a loan that is given by Banks and NBFCs to any person that owns a property. The reason why you might have not heard a lot about this loan is that people only opt for this when they require a huge loan amount. 

In India, the majority of Banks and NBFCs provide loans against property to any person that owns a property. This property can be anything from residential to commercial or industrial. It is also considered to be a secured loan that means there will be an asset that will be kept as collateral.

Because of this being a secured kind of loan, it is highly possible to get a lower loan against property interest rate. Yes, the interest rates are lower than most of other loan types because of the secured factor.

Is there a loan against property eligibility?

Yes, we must keep you aware of the criteria that have been set by Banks and NBFCs in India. These criteria must be fulfilled by a person if they wish to apply for a loan against property.

  • Individual’s age – 18 years+
  • Indian citizen
  • Owner of a property (residential, commercial, industrial)

Things Banks check when you apply for a loan against property?

  • Banks will check if you fulfill the basic criteria.
  • Post that they will check your property papers and evaluate your property.
  • This valuation will consider all factors right from year of purchase to current market rates and the real estate industry. 
  • Once that’s done, they will give you up to 45-70%* of your property’s value as the loan amount.

Please remember that loan against property is for people that wish to own a huge amount to clear expenses and emergencies like higher education abroad, medical emergencies, etc.

It will be wise for you as a loan applicant to maintain each document of your property. If documents are not fully complete, then your loan application will take a longer time to get approved. Hence if you wish to get the loan amount in a quick span of time, then maintain all documents.

If you wish to get the best loan against property (mortgage loan) experience, kindly contact us on our website and Apply Here!

Leave a Reply

Your email address will not be published. Required fields are marked *