A secured method to obtain finances for various purposes, Loan Against Property (LAP) can be availed by individuals and businesses. As the name suggests, in this type of loan, you can acquire funds by mortgaging your property. The property being used as collateral can either be self-occupied, commercial property or even a piece of land. Based on the value of the property, the lender (financial institute or bank) will ascertain the percentage of the loan that you are eligible for. This will be followed by the payment terms and the set interest rate. Here, you have the freedom to choose the payment term (short or long tenure) as per your financial situation.
Unlike home loans, wherein the bank/financial institute takes full ownership of the house until the entire loan amount is paid off, in LAP, the borrower retains the ownership of the property at all times. So, in the event, a borrower is unable to repay the loan amount, he/she can sell the property and then repay the loan with whatever interest applicable.
Also, compared to a personal loan, in loan against property, you have a higher loan repayment tenure (up to 15 years). The interest and the EMI is also lower. More importantly, in the case of personal loan, the eligible loan amount is decided based solely on your income, whereas, in LAP, the eligible loan amount that you can avail is decided based on your income as well the value of the property, which enables you to secure a higher loan.
Documents Required for Property Loan
| Salaried Customers |
Self Employed Businessman |
| Applicant /co-applicant-photo |
Applicant /co-applicant-photo |
| Pancard/aadhar card |
1. For Proprietorship (Aadhar card & PAN card of Applicant and Co-applicant)
2. For Partnership (Company PAN card & Aadhar card of all Partners)
3. For PVT LTD. (Company PAN card/MOA/AOA/Aadhar Card/PAN card of All Directors/List of Shareholders) |
| Residence address proof |
Office address proof |
| Latest 3 month-Salary-slip |
GST Registration/GST Return 3B(last 1 year) |
| Form 16-last 2 years |
Form 26/last 3 year complete financials (ITR Computations, Balanced Sheets, Profit and Loss) CA attested
Audit Report if available |
| Last 6 months bank statements-where salary get credit |
Bank statement of current and saving account (last 1 year) |
| All Existing loan track–if any |
ALL Existing loan track–if any |
| Property papers complete chain with sanction |
Property papers with complete chain |
| Professional degree(certificate)-in case of professionals |
Professional degree(certificate)-in case of professionals |
| For Balance Transfer-lod (List of Documents), SOA(Statement Of Accounts), Sanction Letter foreclosure Letter |
For Balance Transfer-lod (List Of Documents), SOA (Statement Of Accounts), Sanction Letter foreclosure Letter |
