Loan against Property (LAP) and How to apply for it

9 August 2018

There are many forms of loans available to you in times of financial troubles. But the loan amount in some cases might not just be sufficient. In such situations, loan against property can be of great help. Loan against property is a fantastic way to arrange for funds when you want to meet any type of high expenses.

Dravya Financial is a premier financial services firm offering business loan against property In Mumbai, Pune, Ahmedabad and Bengaluru. The firm also specializes in construction loan/finance for builders in Mumbai, Pune, Ahmedabad and Bengaluru. Let’ find out what a LAP is and how you can apply for it.

Loan against property :

A LAP is a form of loan that is granted against a property kept as collateral. With the property as security, the borrower provides a guarantee of repayment thus making LAP a secured loan.

1. Loan Amount:

The loan amount offered depends on the valuation of the property kept as collateral. Usually, lending institutes sanction a loan of, approximately, 65% of the value of the property.

2. Rate of Interest:

The rate of interest for loan against property ranges from 12% to 16%.

3. Tenure:

The tenure for loan against property can be up to 15 years.

Type of Properties Eligible :

LAP is available against:

  • Self-owned residential property
  • Self-owned and self-occupied residential property
  • Self-owned but rented residential property
  • Self-owned piece of land
  •  Self-owned commercial property
  • Self-owned but rented commercial property
Eligibility Criteria for LAP

General assessment includes your financial information, value of the property and your ability for repayment. Along with being an Indian citizen or from an Indian origin, other factors assessed include:

  • Your income
  • Your savings
  • Your debt
  • Value of the property mortgaged
  • Your past repayment record for loans, credit cards, etc.
Documents Required
  •  Application forms with photographs of all the applicants with cross signatures.
  •  ID proof like Copy of Passport / Driving License/ Voter ID card / ID card issued by employer with signatures.
  •  Address Proof which should not be more than three months old like Copy of Ration Card / Passport / Electricity or Phone Bill / Rent Agreement / Credit card statements / Property Papers.
  •  Latest salary slips/ proof of business profile.
  • Form 16 or salary certificate showing the total salary and tax deducted from last two years.
  • Income tax returns copy (ITR copy) of the latest three years for individual and business.
  • Bank statement of the last 6 months validating regular income.
  • A cheque on account of processing fees in favour of the bank.
  •  The documents for property mutually agreed by the bank and the borrower as security.

Looking to avail loan against property in India? We at  Dravya Financial  offer expert financial services pertaining to asset-backed lending. We extend financing to a wide range of companies and advise them on capital raising transactions, including loan against property, private and public placements, debt financing and structured products.

Talk to us

Whether you're looking for a specific service or would simply like to explore some financing avenues, get in touch! We'd be happy to be of help.