In times of financial emergencies, a loan against property can be the best choice to obtain a sizable amount. One can use the disbursed amount without any obligations and restrictions.
Individuals can opt for a loan against property for home renovation or financing their professional and personal expenses. In this article, we are going to talk more about this secured loan and how to avail of it.
Step-by-step process to apply for a LAP
An individual can apply for a loan against property online by following these steps:
The candidate must visit the official portal of his/her preferred lending partner and click on the loan against property option.
Then, borrowers need to fill up the application form for LAP and provide their personal, professional, and property details.
After the successful completion of the abovementioned steps, the lending partner will verify the documents and sanction the loan amount.
Features and benefits of loan against property
Leading financial institutions, like Bajaj Finserv, offer LAP several benefits. Some of which are as follows:
- As a loan against property requires keeping a property as a mortgage, lenders disburse sizable amounts as the risk factor reduces considerably.
- The lending partners offer this credit facility for an extended repayment tenor as the loan amount is secured with property. In case of any default, the lenders have the right to dispose of the property and recover the unpaid dues.
- The interest rate on loan against property is comparatively affordable. Moreover, financial institutions extend the facility of an online LAP EMI calculator, which allows candidates to check their monthly installments and plan their expenses accordingly.
- An individual can claim tax benefits for the interest paid for a loan against property, according to Section 24(B) and 37(1) of the Income Tax Act. Candidates must know about these tax benefits on a LAP as they can save a considerable amount of money and help them have a smooth experience during the repayment tenor.
- Individuals can use the loan amount for their professional as well as personal purposes without any obligations and restrictions.
Eligibility criteria to opt for a loan against property
An individual can easily opt for a LAP if he or she fulfills the following eligibility factors:
For salaried individuals
- The candidate must be an Indian citizen
- He/she should be between 23 to 60 years old
- The borrower must have a steady flow of income and must be working at a private or public company or MNC with at least three years of work experience
For self-employed individuals
- The candidate must be an Indian resident
- He/she must be between 25 to 70 years old
- The candidate must be able to produce proof of a steady income source
First-time borrowers can easily opt for this credit facility if they meet these simple eligibility criteria.
Documents required to opt for a loan against property
The documents required while opting for a LAP are as follows:
- Current salary slips (for salaried individuals)
- Bank account statements for the last three months
- Aadhar card
- PAN card
- Address proof
- The documents of the property that the borrower is mortgaging
- Income Tax returns (for salaried individuals)
However, one should always conduct thorough research when choosing lending partners. Several paraments, such as repayment tenor, location of the property, loan amount, etc., affect the LAP interest rates. Hence, candidates must compare different lending institutions and make an informed decision accordingly.
Candidates must also check their pre-approved offers extended by leading financial institutions on products, such as a LAP, home loan, etc., by submitting their names and contact details. These offers cut down the hassles of documentation and make the overall application procedure considerably faster.
To sum it up, a loan against property is indeed one of the best credit facilities to opt for in times of financial emergencies. However, several factors affect the interest rates of LAP. In this regard, candidates can take the help of an online LAP EMI calculator to check their monthly installments and avoid financial burdens in the long run.