What is Loan Against Property-How to Apply for Loan Against Property

What are the Benefits of Loan Against Property (LAP)

What are the Benefits of Loan Against Property (LAP) jobisearchIf you want money for your personal use then there are many ways to arrange money. You can arrange your money by taking loan. You can take a loan against property.

A loan against property is one of the best ways to raise money. By taking loan from bank you can send your child for education in abroad and finance your business with taking loan or even in child wedding. Taking loan against property is a best way to raise money for personal use.

What is a Loan Against Property (LAP)

A loan against property is a loan given or disbursed again the mortgage of property. Mortgaging existing property is a great way to get a loan at low interest rates to meet your current financial needs without actually selling off the same. The loan is given as a certain percentage of the property market value. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security. Rate of interest is low in LAP, it equated monthly installment is turn out cheaper. Loan eligibility is determined by the value of the property and income.

Features and Benefits of Loan Against Property (LAP)

  • Higher loan amount available for longer time at attractive rates.
  • LAP can be approved easily and quickly.
  • Residential and commercial properties accepted in LAP.
  • Loan gets at low interest rates.
  • Higher loan amount with lower EMI.
  • Funds can be used for business as well as personal needs.
  • Choose overdraft facility or EMI based loan.
  • Specially designed program for self-employed.

What Documents are required for applying a Loan Against Property

Employed Person- Application form, identify and residence proof, salary slip, bank statements, processing fee cheque.

Self-Employed Person- Application form, identify and residence proof, education qualification certificate, proof of business existence, self and business income tax return, balance sheet, bank statements, processing fee cheque.

Question and Answer Related to Loan Against Property

Question 1- What kind of property given for loan?

Answer- You can take self-occupied or rented residential property like house or piece of land.

Question 2- What is the disadvantage of LAP?

Answer- If the borrower is not able to pay the loan fully, the bank or the financial institution can take possession of the mortgaged property.

Question 3- What is loan against property?

Answer- It is a loan given or disbursed against the mortgage of property.

Question 4- What is the full form of LAP?

Answer- Full form of LAP is Loan against property.

Question 5- What are the features of LAP?

Answer- Higher loan amount are available for longer time at attractive rates.

Question 6- What are the benefits of loan against property?

Answer- Funds can be used for business as well as personal needs.

Question 7- What documents are required for applying LAP?

Answer- Application form, identify and residence proof, education qualification certificate, proof of business existence, self and business income tax return, balance sheet, bank statements, Salary slip, processing fee cheque.

Question 8- What are the normal interest rates for a loan against property?

Answer- The normal interest rates for a loan against property is 12% to 15.75 %.