Does your property take care of your needs? Due to requisite of debt lot of prices has increased of the things in today's market. Loan Against Property (LAP) determines to a multipurpose loan which is often obtained by mortgaging your existing residential or commercial/Industrial property to meet the financial requirements. This loans which help in your requirements like home reconstruction, paying your debts, or even business expansion. Taking loan as a lender, you will be financially assisted by the bank or the NBFC-loan company with various rates of interest which will help you to expand your amount for various needs.
You will be eligible to avail this loan by
- - By showing 6-month salary statement
- - If you are a business owner / individuals / proprietor
- - Partnership firms
- - Private limited companies
Each bank or NBFC companies have their own criteria to provide the loan to their customer by seeing the estimate of their requirement.
How can we avail the loan?
- - Age limit 22 to 60 years
- - Property valuation mini. 25 lacs
- - Income of the employee/employer
- - How much Assets and security against fund
- - Credit history
- - Any existing obligations
- - Character certificate
- - Course Payment capacity
Seeing all the above criteria bank can allow giving loans ranging from Rs. 11 lacs to up to Rs. 25 crores. The maximum loan one can avail about 55% of property value for commercials and up to 65% on residential properties.
Is it Easy to Avail Loan?
- - Simple documentation
- - Application form signed by the lender
- - Aadhaar Card and Original Index Copy of the residential/commercial property
- - Salaried person has provide last 3 year form 16th
- - Income documentation ( last 3 years income tax return with balance sheet, (P & l ) profit and loss account and capital account. / Audit report
- - Latest last 12 months Bank statement of Saving / Current / CC / OD account
- - Documents to substantiate the existing business
- - Processing Fees in the form of Cheques.
Banks always assure that the lender is on a regular source of income to lend them a loan. As Banks are providing nowadays collateral-free business loan - Collateral free facility specially designed under the Credit Guarantee Fund Trust for Micro and Small Enterprises (MSE's).
As today's market is gone online, so most of the money lenders are offering theses finance services online. Online applications are now consuming less time and provide comfort for the applicant to opt for the loan without any hassles. The lender should always be aware of fraud happening online - so recommend to cross check with the finance company or the bank before taking action online.
Usually, Banks offers 1 types of interest rates against your loan- Floating Rates
What rates do we get generally?
Interest rates on your property loans generally range from 9% to 18%. LAP generally gets approval for a tenor of mini,. 7 years to maxi. 15 years (180 months).
How is the payment done?
The lender can either choose to make repayments through NACH – National Automated Clearing House or by writing a PDCs - Post Dated Cheques.
What about repayment of the loans?
Lenders always think to repay the loan as fast as possible, a customer can always pay their partial loan or entire loan before the monthly due dates, for this bank and NFBCs charges small principal amounts for the debt repayment before time.
Various banks and private financial institutions are providing loans through various method of marketing, would always recommend doing a lot of internet research and cross-checking to avail the best and risk-free loans against your property.
While obtaining your loans make sure to understand the hidden clauses, penalties and various fees which the bank never reveals at the time of taking loans.
On the other side lender also avails some advantages like:
- - Bank provides good tracking records if the lender is paying on time.
- - Tax benefits
- - insurance benefits
- - Free for life credit card with lots of services and many more.
A loan against property has been always been safe for increasing your money. But one should always understand the cons of such loans that if the lender is not able to pay on time, the bank or the NBFCs institutional can take the possession of the mortgaged property anytime as per the application signed by you.
If you are a prospective loan borrower never rush for LAP immediately always take proper precaution before availing any type of loans.
Notes: AS per legal terms and conditions if any existing loans or property documents hypothecation remain you will get negative response.