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How to get Loan against property

How to get Loan against property

Usually, in order to receive anything, you must first let something go, but with a loan against property, this is not the case (LAP). You remain the owner and continue to utilize the property while your loan is being serviced even though you are using it as collateral for the loan. So, with LAP, you can fulfill your financial needs without giving up ownership or control of the property while simultaneously obtaining a Loan Against Residential Property.

Therefore, you’ve come to the proper spot if you need financial assistance and want to learn more about Loan Against Property, plot mortgage loans, the numerous benefits of LAP, and how to apply for this loan.

Loan Against Property: What Is It?

A mortgage loan, also known as a loan against property or a loan against residential plots, is a financial tool that enables you to use the value of your property by using it as security to obtain funding from a lending organization. It is a secured loan that offers significant funding or a loan against residential property, and it has a flexible repayment period.

Features & Benefits of Loan Against Property

Greater LTV on Market Value – You may be eligible for a greater loan-to-value ratio (LTV) on the market value of your home, which translates to a larger sum to meet your demands.

Processing loans quickly and easily Unlike other lenders, we make it simple and quick to apply for a loan against property. Your loan application process will go quite smoothly if you satisfy the minimum eligibility requirements and supply the necessary paperwork.

A minimum of paperworkLong lines and mountains of paperwork are a thing of the past. Simple online applications for loans against property just require the most fundamental paperwork, saving you a tonne of time and effort.

Transparency in processingA transparent loan processing procedure fosters confidence. There are no hidden fees because each charge is quickly disclosed to the user at every stage of the procedure, from application to distribution.

Longer tenure When you are given some flexibility about the tenure of the loan, repayment is made simpler. With little trouble, you can repay your Loan Against Residential Property over a maximum repayment period of 15 years.

Chares associated with foreclosure You can now foreclose on your loan far in advance without paying any significant fees. Lenders charge a small foreclosure fee based on the remaining loan principle.

Service at your doorstep – You can apply for a Loan Against Residential Property whenever it’s convenient for you. In order to make applying for a loan easier for you, many lenders provide doorstep services.

Loan Amount – Your loan against property could be worth anywhere between Rs. 25 Lakh and Rs. 10 Crore.

How Can I Apply for a Residential Property Loan?

You must complete the following procedures in order to apply for a Loan Against Residential Property. Let’s get going!

First, confirm that you fit into one of these three categories:

  • Paid employees of LLPs, private limited companies, and public limited businesses
  • Owner, partner, or director; independent contractors in the manufacturing, servicing, or trading industries, such as chartered accountants, company secretaries, or doctors; partnerships or private limited businesses.

Eligibility criteria for a Loan Against Property

The following are the basic requirements to be eligible for a loan against property:

Age — At the time of loan application, the minimum age for paid employees, independent contractors, owners, key partners, and key directors are 22 years old. At loan maturity, salaried employees should be no older than 60, while self-employed people and business owners should be no older than 75.

Work experience/business history – Salaried people should have a total of three years of experience, with at least one year being spent with their present employer. Professionals who work for themselves should have been in the same line of work for the previous three years. Companies should have been in operation for at least three years.

Income – For salaried workers, the net monthly take-home pay should be at least Rs. 25,000. Self-employed people must make a minimum of Rs. 3 lakh in gross annual revenue. Companies should have a minimum yearly turnover of Rs. 10 lakh.

Citizenship: All significant parties ought to be Indian citizens.\

Documents Required for a Property Loan

Identity proof: Salaried and self-employed professionals should present their corresponding PAN cards and Aadhaar cards. Along with the KYC of Partners’/Directors’ PAN Cards and Aadhaar Cards, the firm or company must also provide their company PAN Card, GST Registration Certificate (if applicable), and other Applicable Registration documents.

Income documentation – Salaried people should present their last three months’ worth of pay stubs. Self-employed people must submit income tax returns for the last two years, together with calculations, profit/loss statements, and balance sheets. Companies should provide all required documentation, including their GST returns as a supplementary document for self-employed people.

The utility bill for privately held properties, the rental agreement for privately rented properties, and passport information are all required as address evidence from all parties.

Financial records Salary credit bank account statements from the most recent 12 months must be provided by anyone receiving a salary. Professionals who work for themselves and their businesses should present active bank account statements from the last 12 months.

Property paperwork along with legal and technical clearance of the property, should be provided if the paperwork has already been finalized.


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