Loan against property is a secured type of loan offered by lending and financial institutions for multi-purpose utilization while holding your owned property as security. The property owned by you is to be pledged as collateral for which you can obtain cash for up to 70-80% of the market price of the property. The major benefit associated with this loan is that you can continue using your owned property for any purpose.

People who plan to “Apply For Loan against property“ might have some questions to ask about this financial tool which we have tried to answer to clear all your doubts.

What is the difference between Loan against Home and Loan against Property?
However, home loan is also a secured loan provided by lending institution to buy a residential property but Loan against Property is a multi-purpose financial solution which is availed by pledging their property to access the funds for anything varying from funding your children’s higher education to the expansion of your business.

What are the benefits of Loan against Property?
A Loan against Property can be availed at lower rate of interest than any Personal Loan. Moreover, funds available with LAP are much higher than any other personal loan and can be availed for much longer tenure. It must be noted that interest rate and tenure of loan available to you depends upon number of factors such as monthly income, loan quantum, property evaluation etc.

In addition to that, lenders also charge a low processing fee on loan disbursed against residential or commercial property as compared to other unsecured loans.

What are the eligibility criteria for LAP?
The eligibility criteria for Loan against Property will vary from one lender to other but there are some common criteria. This loan can be availed by any salaried or self-employed individual and you can also add co-applicant as in close relatives, friends or partnership firms. The main applicant must be at 21 years of age and should be a resident of India. Also, you must earn a certain amount of salary that ensures your repayment capacity to repay the EMI payments.

What type of properties can be pledged?
There is common myth that a loan can only be secured in lieu of residential property but lenders offer loans on myriad of properties, including commercial or residential property. Even a vacant land that has not been constructed yet can also be pledged as security to get the funds. Depending upon a specific lender, a borrower can access about 70-80% of the market price of property when they “Apply For Loan against property Online“ or offline.

What paperwork is required to apply for LAP?
The documentation also varies from lender to lender and depends upon borrower whether he/she is salaried or self-employed. Generally, one needs to submit Identity proof, residential proof, salary slips as well as income tax return slips etc. moreover, lender might ask for credit report, balance sheets and educational qualification amongst documents. Keep all these documents in hand to get easy approval on Loan against Property.

Have you ever heard about the financial term loan against property? If not, then you must wonder what does this term means and how it is different from the loan against home. In this article, we will help you to decode the concept of loan against property which is also termed as LAP in the financial sector or lending market. Well, Loan against Property is type of secured loan which is accessed against an immovable asset, most probably a property or a type of land that should be kept as a mortgage with the lending institution to avail needed liquid funds. In this context, property can be residential or commercial.

There is a fundamental difference between home loan and mortgage loan as housing loan is availed to purchase your own house which could be under construction or a residential plot where as if you “Apply For Loan against Property“ one can meet their personal and business financial requirements such as wedding, exotic vacations, child’s higher education or for any medical emergency or paying for hospital bills by keeping your property as collateral with the specific lending institution.

In recent times, Loan against Property is gaining high popularity due to the host of serving features which comes along loan money. We have list down some of the basic features of this loan for you:

√ This loan is availed against a property that can either be a residential property or commercial one.

√ Loan money of several lacs to crores can be availed while applying for loan against property.

√ The commercial properties that fall under the ambit of secured assets while availing a mortgage loan can be shops or office premises.

√ Any salaried or self-employed individual having a good credit score is eligible for getting a loan.

√ A rate of interest is comparatively much lower as compared to avail any unsecured type of lending such as personal Loan.

√ The type of interest rate under loan against property can be accessed under fixed interest rate or floating interest rate.

√ The tenure of loan for repayment is much longer and flexible in few cases.

√ The loan procedure is much faster for loan against property if all the requisite documents are in hand and the eligibility of the specific borrower is robust along with credit worthiness.

Therefore, your home or property can provides you the potential to fulfill your dreams to aid you in the pressing times. Hence, if you are seeking a Loan against Property, our institution ensures that you commence the loan procedure by contacting us to “Apply For Loan against Property online“ or offline. We are prudent to do the research work and offering you the loan schemes from various lenders before finalizing any loan deal.

ShubhBank aims at fulfilling all your loan requirements and extends best-in class loan deals and post loan services that give you the financial power to accomplish all your personal dreams and professional goals with a stress-free loan journey at lowest possible rates of interest as well as flexible tenure.

Loan against property is granted to any individual who owns a property by any lending institution. In such times, a COVID outbreak has elevated the expenses more than the income, therefore, people who have to deal with long term financial issues, a safe solution which can help them for long years is to “Apply For Loan against property“.

In our country, the majority of financial institutions offer loan against property to a person who owns any residential or commercial property. It is meant to be secured loan as you have to keep your property as collateral to access the funds. Hence, the interest rates are lower than personal loan because of the security. There are few ways to follow which will help you to get the best deal on loan against property at lowest interest rate.

Maintain a good CIBIL score: It is very important to maintain a good credit score to secure any type of loan. However, it sounds difficult but in real, it is very simple to maintain your credit history. One needs to pay his/her bill payments, credit card dues and other loan repayments on time every month without doing any default.

Steady income and savings: Another key factor to secure the loans at lowest rate of interest is to maintain a steady income, especially as long as you have any pre-existing loan in your name. However, without a stable source of income or enough savings, it becomes difficult for you to repay the monthly installments and to clear all your debts. If you default on any of the repayments, you can lose your rights on pledged property.

Plan your budget: The important thing that one should be aware about is to manage the funds what they have. Thus, it is good to control all your unnecessary expenses otherwise it might hurt you in the long run. It will ultimately help you to save more at the end.

As a loan against property is known for a loan that lender provides a borrower against the property which is under his/her name, so lender will check your property ownership papers. A lending institution will send a team of valuators who will evaluate the market price of property to be pledged. You can secure up to 70-75% as a loan quantum depending upon the current market price of the property.

We can say that the people who wish to own a huge amount to clear their debts and to face the emergencies such as higher education abroad, to pay medical bills etc. they can “Apply For Loan against property Online“ or offline as it will act as a boon for them.

It will be smart choice to follow the above mentioned points and to maintain every required document to get approved for loan. If you are looking for the best loan against property experience, you can contact ShubhBank or you can apply online at our website and we ensure you the best deals at the lowest interest rates in the market.

Taking a loan against property has become easy these days as ShubhBank has introduced its online portal to get a loan. If you are an owner of residential or commercial property then you can easy secure a mortgage loan from any financial institution of your choice. One should fit into eligibility criteria and must have some important things in hand to “Apply For Loan against property“. If you are in urgent need of quick funds to fulfill your financial needs, we suggest to keep in mind the following must have’s to get such loan.

Ownership of property: This loan is secured only if you own a piece a property in your name whether it’s a residential or commercial property; either villa or a shop; any property registered on your name is eligible for the loan. In case, multiple people own a property, they can get a loan as co-applicants but if you singly own a property then ownership papers should clearly state you as owner.

Property’s value to be mortgaged: Alongside your eligibility, a lending institution also checks the property’s eligibility. The property you are about to mortgage should not be much older as well as should not be under any legal conflict. The loan quantum to be approved is finalized upon the market value of the property.

Banks and other lenders approve only 70 to 80% of loan amount as per the current value of the mortgaged property. Hence, one should know the value of property and then proceed with the loan processing.

Check your credit score: One must have a strong credit history to apply for a loan against property. It all depends upon your financial history, profession and income and you existing loan repayments etc. Most of the lenders process your loan if you have a credit score above 750.

Processing fees of loan: You can also “Apply For Loan against property Online“ however it’s online or offline, a lending institute always charge you some basic processing fees. It may range from 1-2% of the total loan quantum approved to you. Therefore, it is always better to know about the processing fees your lender will be charging to you and then go for the loan amount that you need.

Repayment capacity: It is an important component to get approved for any of the loan. Every lender checks the repayment capacity of the borrower to approve his/her loan against property across India. This paying back capability depends upon how much you earn in a month, your credit history and your profession in a reputed organization. It is advisable to perform a check on what you can really afford to pay back your loan amount in a fixed period, even before applying for it.

Thus, now you know all the must have’s for getting a loan against property from any lender, so make sure to check your eligibility criteria to fulfill your financial requirements and emergencies. Hence, choose the ShubhBank to secure a loan against property with best features you can ever get.

Loan against Property is a financial tool that you can secure when you pledge or mortgage your property to the lender. It is a secured loan as far as the lender is concerned. In case you default on repaying on repaying the loan amount for any reason, the lender can retain the rights of your property. So, one should only pledge their property when he/she is sure to repay the loan.

Before you “Apply For Loan against property“ you should plan your budget and save for long term financial goals that you can foresee. Besides all your planning, there are some uncertain situations which need to be addressed with additional funds. Let’s have a look to find out how Loan against Property can raise funds in some typical situations.

Education and Wedding Expenses: A higher education of your wards and their wedding are long-term financial affairs. You would normally plan them earlier in life and save up for it. There are specific loans offered by lenders for both higher studies and marriage. You can consider the fact that interest rates and repayment conditions on it are more convenient in comparison with these specific loans. You must be sure to repay the loan depending upon your income and saving.

Business Funding: You have to mortgage an asset when you avail a loan against property. As mentioned earlier, if you are unable to repay the loan, you could lose the right on your property to the lender. Therefore, utilize the loan money for purpose that is not too risky. That is why; it is good to secure this loan to expand your existing business rather than starting a new business as your business profits needed to be steady to pay off the loan easily.

Medical Emergency: As one’s age grows, medical expenses usually increase. The best way to plan this is to get a health insurance policy in your early age that can help you to manage the medical expenses later in life. But in case, you skip this step, there are high chances to shell out all your savings in tough times. “Loan against property Online“ is not a best way to fund medical expenses but emergency but it can certainly help you out.

Down Payment for new Home: When you secure a home loan, the lending institution will only finance up to 80% of the market price of that home. The rest 20% will need to come from your pocket. If you are buying a luxury home, the down payment itself will cost into many lakhs. Generally, you should have saved for that but if not then you need to borrow somewhere.

You can also pick up a personal loan or loan against property to raise the funds but remember, the rate of interest on these loans is higher than the home which can result in a financial burden on your pocket.

At the end, you would see that LAP is a good option when you need to raise funds to fulfill your requirements but it is always great to compare all the available offers and finalize a calculated decision.