Loan Against Property (LAP)

1. Collateral: The loan is secured against a property, which could be a house, flat, or commercial building. The property remains with the borrower, but the lender holds a lien over it until the loan is repaid.

2. Loan Amount: The loan amount is usually a percentage of the property's market value, typically up to 70%. The exact amount depends on the lender's policies and the borrower's profile. If you want higher LTV Connect with us

3. Interest Rates: LAP interest rates are generally lower than those of unsecured loans, such as personal loans, because the loan is secured by property. Connect for current best rates

4. Tenure: LAPs generally come with longer repayment tenures, often ranging from 5 to 15 years, which makes the EMI more manageable. Click if you want to avail a 20 yrs LAP

5. Usage: The funds obtained through a LAP can be used for various purposes, such as business expansion, education, medical expenses, or debt consolidation.

6. Eligibility: Lenders evaluate factors such as the borrower's income, credit history, and the property's value and legal standing before approving a LAP. We can derive your eligibility upfront - Connect with us

7. Foreclosure Risk: If the borrower fails to repay the loan, the lender has the right to auction the property to recover the outstanding amount.

8. Pre-payment /foreclosure charges - Click here to get NIL foreclosure charges

The average interest rate for a Loan Against Property (LAP) typically ranges between 8% to 14% per annum. The exact rate varies based on several factors, including the lender, the borrower's credit profile, the property's value, and the loan tenure.

Factors Influencing LAP Interest Rates

1. Type of Property: The interest rate may differ based on whether the property is residential, commercial, or industrial.
2. Loan Tenure: Longer loan tenures might attract slightly higher interest rates.
3. Credit Score: A higher credit score often results in a lower interest rate.
4. Loan Amount: The loan amount in relation to the property's value can also impact the interest rate offered.

Typical Interest Rate Ranges

1. Banks: 8.0% to 12% per annum*
2. Non-Banking Financial Companies (NBFCs): 9% to 14% per annum*

Eligibility Criteria

1. Nationality: Must be PIO. NRI are also allowed*
2. Age: The applicant must be between 21 years to 70 years
3. CIBIL Score: A CIBIL score of 650+ or higher is ideal to get a home loan/loan against Property (LAP)
4. Occupation: Salaried employee, a Professional Individual, and a self-employed professional.

Documents Required

• KYC Documents (Identity and address proof)
• Proof of Income (Salary slips or P&L Statement)
• Proof of Business (for self-employed applicants)
• Account statement for last one year
• ITR for last two years.
• Property Documents