Loan Against Property

As the name suggests loan against property (LAP), is the loan that you avail by keeping your property as a mortgage with the bank. The loan is given as a certain percentage of the market value of the property. Generally, lend 50% to 60% of the value of the property.

As your property is kept as collateral with the bank, it is a secured loan. In case you fail to repay the loan, the lender has the right to auction your property and recover the money.

For what purpose you can take the loan against property?

It can be used for any purpose other than speculative. You can use it to

Fund your child’s education abroad
For funding any medical emergency
Wedding of your child
Funding the dream vacation
Business expansion

What kind of property can be mortgaged?

You can mortgage a self-occupied house as well as a rented residential property or it can be a piece of land that you own. However, it is necessary that the property is free from any kind of mortgage of litigation. Basically, the title of the property should be clear.

Loan against property (LAP) Eligibility

Minimum age 22 years of applicant maximum age at loan maturity 65 years

Documents for salaried person

  • Pan Card
  • Aadhar card
  • Utility bill for the last 2 months
  • Last 3 months salary slips
  • 6 months bank statement
  • Form 16 of last 2 years

Document for self-employed

  • Pancard
  • Voter ID
  • Adhaar Card
  • Utility bill for the last 2 months
  • Last 2-year ITR copy with computation of Income
  • Bank statements last 1 year (both current & saving accounts)
  • Business and residence ownership proof