Loan Against Property

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Loan Against Property

What is Loan Against Property (LAP) or Mortgage Loan?

Loan Against Property (LAP) or mortgage is a secured loan in which real estate securities are held by a fund provider as collateral. If the loan is successfully repaid, the deed will be returned to the borrower. You can apply for a residential, commercial or industrial real estate loan.

Some of the common uses of a Loan Against Property are given below:

Educational expenses
Business expansion
Marriage expenditures
Medical emergencies
Funds for travel, vacations, big-ticket purchases
Higher studies

For more information on why you choose a mortgage and its main features and benefits, please visit badafinance.in. You can also learn about the various options available and the requirements for applying for a loan. This website offers loans from some of the best banks and NBFCs in India.

Features of a Loan Against Property (LAP)

Below are some of the features of a property loan/loan against property:

You can get up to 75% of the property’s current market price as a loan amount. You can borrow between rupees. With this loan scheme, 10,000 rupees and 10 rupees.
Real estate loans mean fixed or floating interest rates. Currently, the minimum interest rate starts from 7.75%.
Both salaried and self-hired people can avail this loan.
The loan term is between 1 and 15 years.
Fees range from 0.50% to 2% of the total loan amount. If you apply from Bada Finance, you will receive a special discount on fees.
Top-up loans and bank overdrafts may also be available.

Points to Consider Before Applying for Loan Against Property

Below are factors that you should keep in mind before applying for loan against property:

The property in question must be in India.
You must be one of the property owners. Co-owners are inevitably co-applicants for real estate loans.
Loan against property are usually not given to buy or build a home.
The selected property must be free of internal disputes. Otherwise, your loan application is more likely to be rejected.
You may need to provide a final use obligation for your loan. Banks / NBFCs can check the actual usage of funds at any time.
A credit score of 650 or higher is considered advantageous for mortgage approval.
The basic documents you will need include a PAN card, residence certificate, Aadhar card, voter ID, passport, ID card, employment certificate, income certificate, and property related documents.

Eligibility Criteria for a Loan Against Property

Some of the eligibility factors are mentioned below:

You must be at least 21 years old to qualify for a mortgage.
Must be one of the owners of the selected property.
You may be an employee or a self-employed person with a good payback history.
If you are employed, you need at least two years of work experience.
The monthly salary must be at least rupees. Over 25,000.
In-progress EMI affects billing amount.

Documents Required to Apply for a Loan Against Property

The documents required for a mortgage depend on the applicant’s financial profile (employee, self-employed, entrepreneur).

Property Related Documents

Registered sale deed/past sale deed chains (each sale deed of the past sales of the said property from its first allotment)
Copy of property agreement
Conveyance deed
Lease deed (if the property is leased)
Latest house tax return proofs
Approved building plan from the Municipal Corporation
Share certificate (if the society is formed)
Latest maintenance bills
Latest electricity bills

Other documents required are as follows:

For Salaried Individuals:

Form-16 provided by the current employer
Past 3 months salary slips
Identity proof such as Passport, Voter ID Card, Aadhar Card
Recent passport-sized photographs
Proof of residence
Salary slips for past 3 months
Salary account’ bank statement for the last 6 months
A cheque for processing cost/administrative cost applicable by the bank/NBFC.

For Self-employed Businesspersons:

Identity and residence proof
Recent passport-sized photographs
Educational qualification diplomas, certificates, degrees, and academic credentials
Bank statements of last 6 months
Past 3 years Income Tax Returns

For Self-employed Professionals:

Identity proof and address proof
Recent passport-sized photographs
Certificates proving your qualification credentials related to academics
Balance sheet and profit and loss statement of the company of the last 3 years
Existence proof of business and its profile details
Bank statement of last 6 months
Company’s acknowledged Income Tax Returns and statements of past 3 years
Licensing and registration certificate of the profession

Checklist to Apply for a Loan Against Property by Loanbaba

This is a complete checklist to remember before applying for a mortgage online on our website:

Before deciding on a mortgage program, compare loan offers from banks and NBFCs.
Review your loan by title and EMI amount to understand the qualification of the loan and the total cost of the loan.
The documents required to apply for a loan must be submitted with a completed, legally signed loan application form.
The selected property should have no legal issues.
A certificate of no objection (NEC) is required. NEC has confirmed that the property has no financial debt and is currently free of mortgage burdens.

Top Providers for a Loan Against Property India

Nowadays, most of the banks and NBFCs in the private and public sectors provide home loans to people in India. Some of the main providers are:

LIC HFL
State Bank of India
Deutsche Bank
HDFC Bank
Axis Bank
PNB Housing Finance
ICICI Bank