{"id":8399,"date":"2019-02-12T18:44:41","date_gmt":"2019-02-12T13:14:41","guid":{"rendered":"https:\/\/golocalclassified.com\/article\/?p=8399"},"modified":"2019-02-12T18:48:48","modified_gmt":"2019-02-12T13:18:48","slug":"how-am-i-eligible-for-a-loan-against-property","status":"publish","type":"post","link":"https:\/\/golocalclassified.com\/article\/how-am-i-eligible-for-a-loan-against-property\/","title":{"rendered":"How am I eligible for a loan against property?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Loan against Property (LAP) is a secured loan which you can avail by mortgaging your property. Banks and financial institutions provide mortgage Loan against Property for residential, commercial property or land etc. It&#8217;s a secured loan i.e. in case of loan default; the bank can take over the property and use it to recover loan dues. However, the ownership of the property stays with you throughout the whole tenure. You can typically use or rent out the property, in case of loan against commercial property. Only if you cannot repay the loan, the bank can sell the property to settle its debts. In the case of joint ownership, all co-owners need to be co-applicants in the loan.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The loan is approved on the basis of the mortgaged property.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Are considered to be the cheapest loan products after <a href=\"https:\/\/www.loanadda.com\/home-loan\" rel=\"nofollow\">home loans<\/a>.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Interest rates vary from 9.5-16 %<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The tenure is up to 15-20 years<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Bank decides the loan amount by taking the value of the property into consideration along with the repayment capacity of the applicant.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">No risk of default as there is security or collateral involved.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most financial institutions have similar rules and parameters to check your loan against property eligibility depending on your repayment capacity (based on your annual income and past loans and other commitments) &amp; proper legal and technical verification of the property against which a loan is to be sanctioned. It includes a physical visit to the property, ownership verification and valuation of property by a trusted value. Though all banks follow different norms the maximum loan amount one can avail is 60% of the property value.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Mortgage loan against property eligibility is evaluated on the following benchmarks:<\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Income- must be a salaried or self-employed individual with a stable income source.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Age- must be between 24-60 years.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Credit score.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Total assets and liabilities.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">No of dependants.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Documents Required for Loan against property:<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Property documents:<\/span><\/h3>\n<ol>\n<li><span style=\"font-weight: 400;\"> Occupancy Certificate.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Approved Plan of the building.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Share certificate copy.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Past 13 years Chain of deeds.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Nil Encumbrance Certificate &#8211; EC (if applicable).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Current Sale agreement\/ Draft Agreement to sell.<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">Personal Documents:<\/span><\/h3>\n<h4><span style=\"font-weight: 400;\">For salaried applicants:<\/span><\/h4>\n<ul>\n<li><span style=\"font-weight: 400;\">filled application form<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Identity, residence, age proof<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Last 6 months bank statement<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Last 3 months salary slip<\/span><\/li>\n<li><span style=\"font-weight: 400;\">processing fee cheque<\/span><\/li>\n<li><span style=\"font-weight: 400;\">form 16<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\">For self-employed applicants: <\/span><\/h4>\n<ul>\n<li><span style=\"font-weight: 400;\">ITR<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Proof of business existence<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Business profile<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Tax returns of the last 3 years for the existing business<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Last 3 years balance sheet, profit\/loss account, CA certificates.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Fund your dreams using your property, whether you are looking to expand your business or need financial aid for personal reasons such as education, home improvement or wedding or other family occasions, LAP offers loan amount up to 10cr for the tenure of 15-20 years at lowest interest rates.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Loan against Property (LAP) is a secured loan which you can avail by mortgaging your property. Banks and financial institutions provide mortgage Loan against Property for residential, commercial property or land etc. It&#8217;s a secured loan i.e. in case of loan default; the bank can take over the property and use it to recover loan [&hellip;]<\/p>\n","protected":false},"author":5153,"featured_media":8398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[507,1857],"class_list":["post-8399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-home-loans","tag-loan-against-property"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts\/8399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/users\/5153"}],"replies":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/comments?post=8399"}],"version-history":[{"count":0,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/posts\/8399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/media\/8398"}],"wp:attachment":[{"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/media?parent=8399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/categories?post=8399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/golocalclassified.com\/article\/wp-json\/wp\/v2\/tags?post=8399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}