What is a Loan Against Property?
Loan Against Property (LAP) is a secured loan offered by lenders against residential or commercial property owned by borrowers.
Types of LAP:
- Loan Against Residential Property
- Loan Against Commercial Property
- Loan Against Plot
- Loan Against Industrial Property
Eligibility Criteria:
- Age: 21-60 years
- Income: Rs25,000-Rs50,000 per month
- Credit Score: 600-750
- Property value: Rs10 lakhs-Rs10 crores
- Property ownership: Self-owned or co-owned
Documents Required:
- ID proof (Aadhaar/PAN)
- Address proof (passport/driving license)
- Income proof (salary slips/bank statements)
- Property documents (title deed/sale deed)
- Property valuation report
LAP Features:
- Loan amount: Rs5 lakhs-Rs10 crores
- Tenure: 5-15 years
- Interest rate: 9%-14%
- Processing fee: 0.5%-2%
- Foreclosure charges: 2%-5%
Benefits:
- Low interest rates
- Long repayment tenure
- High loan amount
- Flexible loan options
- Secured loan
Uses of LAP:
- Business expansion
- Working capital
- Debt consolidation
- Personal expenses
- Education expenses
- Home renovation
Repayment Options:
- EMI (Equated Monthly Installment)
- Quarterly installments
- Annual installments
- Bullet repayment
Top LAP Providers:
- SBI
- HDFC Bank
- ICICI Bank
- Axis Bank
- Bajaj Finserv
- Tata Capital
Things to Considers:
- Interest rate
- Processing fee
- Foreclosure charges
- Credit score impact
- Repayment tenure
- Property valuation