Investonleads

Loan Against Property

A loan against property (LAP) is exactly what the the name implies – a lone given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value, usually around 40 per to 60 per cent. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.

Get An Expert Advice On

LAP


Loan Against Property

What purpose can I take a loan against property for?


Loan against Property can be taken for following purposes:

Expanding your business

Getting your son/daughter married

Sending your son/daughter for higher studies abroad

Funding your dream vacation

Funding medical treatments

What kind of properties can mortgage for a loan?

You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land.

What are the eligibility criteria to get loan against property?

These criteria will vary from one bank to another. However, from all the host a factor, the common factors that all banks look at are: Your income, savings, debt obligations Cost/value of the property mortgaged Your repayment track record for other loans, credit cards, etc. What are the normal interest rates and tenure for repayment offered for a loan against property? Interest rates on loan against property range from 12 per cent to 15.75 per cent, and the loan tenure can be up to 15 years.