Loan Against Property (LAP)

A secured method to obtain finances for various purposes, Loan Against Property (LAP) in Mumbai 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.

Things to know when applying for a Loan Against Property;

The property title must be clear and registered in the name of the applicant.
The property to be used as collateral should not have any legal cases against it.
The market value of the property should be higher than the loan amount you are applying for.
The property can’t be mortgaged with other banks/financial institutes.
During the tenure of the loan, the property also has to be appropriately insured against fire, earthquakes, floods, and all other hazards.

At Real Money Solutions, we have tie-ups with notable banks and financial institutions, which helps simplify the process, ensuring that borrowers can secure a loan against property in less time. Our team will ensure that you have all the documents in order before you apply, which will help in faster processing. We will also help you compare loan options, so you can get the better deal.

Moreover, with our expertise and guidance, you can be assured of a safe, secure and transparent process, as our representative will be with you at all steps. Get in touch to know more!

Loan Against Property can be used for;

Higher Studies
Marriage
Medical Emergency
Purchasing new property or land (second home)
For business purposes
Renovation of house
For vacation

Eligibility For Loan Against Property (LAP)

The Applicant should be an India citizen.
The Applicant should be at least 24 years of age.
The Applicant should be residing at the current place of residence for a minimum of 3 years.
Self-employed applicants should be in the business for at least 3 years.

Salaried employees should have at least 3 years of work experience with the current employer.

*Note: Different banks/financial institutes have different eligibility criteria.

Loan Against Property for Salaried Individuals (Documents Required)

Proof of identity (PAN Card) of residence Applicant & Co-Applicant.
Proof of address (Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Proof of age (Birth Certificate, School leaving certificate, Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Latest salary slips.
Form-16 issued by the current employer.
Bank statements for the last 3months (where the salary is credited).
Photocopy of property documents to be mortgaged with OC and CC.
Photocopy of existing loans.
Photo of Applicant & Co-Applicant.

*Should have a good CIBIL score.

*For processing the application, you need to pay administrative costs/processing fees incurred by the bank. This can be done via a cheque.

*Note: The list of documents required varies from bank-to-bank and financial institutes.

Loan Against Property for Self-employed Professionals (Documents Required)

Proof of identity (PAN Card) of residence Applicant & Co-Applicant.
Proof of address (Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Proof of age (Birth Certificate, School leaving certificate, Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Photocopy of property documents to be mortgaged with OC and CC.
Photocopy of existing loans.
Photo of Applicant & Co-Applicant.
IT Returns of three years preceding the one in which loan is applied for.

*For processing the application, you need to pay administrative costs/processing fees incurred by the bank. This can be done via a cheque.

*Note: The list of documents required varies from bank-to-bank and financial institutes.

Loan Against Property for Self-employed Businesspersons (Documents Required)

Proof of identity (PAN Card) of residence Applicant & Co-Applicant.
Proof of address (Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Proof of age (Birth Certificate, School leaving certificate, Aadhaar Card or Passport) of residence Applicant & Co-Applicant.
Proof of the existence of business.
Detailed business profileincluding bank statements of the main account and other accounts. (as mentioned in the balance sheet)
In case of a partnership firm, you would need to submit a partnership deed and partnership authority letter.
Audited ITR Financialsfor the last 3 y
In case of private/public limited company, you would need to submit; list of directors, AOA, MOA, Form 32, shareholding patterns, company PAN card, annual reports, and COR.
Photo of Applicant & Co-Applicant.

“GST Certificate”(for self-employed) & “Bank Statement”

*For processing the application, you need to pay administrative costs/processing fees incurred by the bank. This can be done via a cheque.

*Note: The list of documents required varies from bank-to-bank and financial institutes.