Get Loan Against Property (LAP)
Meet your financial requirements by securing a bank loan against the mortgage of your property. This option is open to both salaried and self-employed individuals.
- Affordable Monthly Payments (EMIs)
- Quick Access to Funds
- Rapid and Effortless Loan Processing
- Prompt Approvals
- Flexible Repayment Duration
- Streamlined and Trouble-Free Documentation
- Convenient Balance Transfers
LOAN AGAINST PROPERTY
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
Overview Loan Against Property
Loan against Property (LAP), commonly known as a mortgage loan, enables individuals to secure funds by using their residential, commercial, or industrial properties as collateral. Similar to unsecured personal loans, LAP can be utilized for various personal and business needs, excluding speculative purposes. Banks and Housing Finance Companies (HFCs) extend loan against property with repayment periods of up to 15 to 20 years. The loan amount for LAP can reach up to 75% of the property’s market value, contingent on the lender and the borrowers’ credit profile. Additionally, some lenders provide the option of Lease Rental Discounting (LRD), allowing individuals to obtain a loan by pledging the rental receipts from their tenants.
Key Attributes and Advantages of Our Loan Against Property
Secured Loan: This loan is backed by the value of your property, which serves as collateral and minimizes the risk for the lender. As a result, secured loans typically offer lower interest rates compared to unsecured loans.
Loan Amount: The sanctioned amount is calculated according to the assessed value of the pledged property. Typically, you can secure a higher loan amount compared to personal loans or other unsecured loan options.
Flexible Tenure: The repayment period for a Loan Against Property is generally more extended in comparison to other loan types, often spanning from 5 to 20 years. This extended tenure enables borrowers to enjoy lower monthly installments.
Multipurpose: The loan amount is versatile and can be utilized for a diverse range of purposes, providing you with flexibility to address various financial needs without any specific restrictions.
Enhances Credit Scores: Timely and successful repayment of a Loan Against Property can have a positive impact on your credit score, showcasing responsible borrowing behavior.
Loan Against Property Eligibility Criteria:
Nationality: Must be an Indian citizen with verifiable documentation.
Occupation and Income: Providing details about your profession and income is crucial to establish your financial stability and professional standing, influencing the lender’s assessment of your creditworthiness.
Credit History: Your Credit Score, reflecting your repayment history, significantly impacts your eligibility for a LAP.
Banking Relationship: A positive history with the lender enhances approval prospects and may result in more favorable terms for loan amount, interest rates, tenure, and associated fees.
Market Value of Property: The lender considers your property’s market value to determine loan amount and terms, with the property’s value exceeding the calculated loan amount based on its current valuation.
Title of Property: Proof of current ownership is required, and in cases of co-ownership, clear title documentation is necessary. Additionally, the property should not be mortgaged with any other financial institution.
Documentation Needed for Loan Against Property Application
- Verification of Identity and Residence
- Confirmation of Income
- Documents related to the Property
- Business Confirmation (if self-employed)
- Bank Statements covering the last half-year
Tool for Calculating Loan Against Property Equated Monthly Installments (EMI)
A Loan Against Property is often referred to as a Mortgage Loan because, in order to obtain an LAP, you are required to use your property as collateral to mitigate the risk of non-payment or default on the borrowed funds. Before a lender approves such a loan, they will assess your personal and financial profile, considering factors such as nationality, age, occupation, income, and the market value of the collateral you are offering. A mortgage loan calculator is then employed to evaluate the financial implications of the loan, based on specific eligibility criteria, facilitating the approval process for your Mortgage Loan.
Costs and Levies for Loan Against Property
The fee structure for property loans tends to differ across lenders and individual cases. The table above provides a comprehensive overview of the typical fees and charges associated with property loans for your reference.
Processing Fees for Loans: Typically ranges from 0.3% to 5% of the Loan Amount.
Loan Cancellation Charges: Generally falls within the range of 3000 to 6% of the Loan Amount.
Stamp Duty Charges: Determined based on the Property Value and State Tax regulations.
Legal Fees: Charged based on actual expenses incurred.
Penal Charges: Typically at a rate of 2% per month.
EMI/Cheque Bonus: Approximately 499/- to 599/-.
Additional fees and charges that lenders may impose on your personal loan comprise documentation charges, verification charges, duplicate statement charges, NOC (No Objection Certificate) certificate charges, and swap fees.
