The loan against property (LAP) is one of the most applied financial solutions in India.
The loan is given against the value of the property that the lenders keep as the collateral.
In turn, you are provided with a large loan amount at affordable property loan interest rates. It leads to covering your many needs with a single solution and without paying higher EMIs.
The collateral could be anything from an owned land, commercial properties or own land.
If you wish to know about the basics of the LAP loan, then you should continue going through this post!
What is a LAP loan?
As the name suggests, the mortgage loan is provided on the basis of the Loan to Value ratio (LTV) of the property that you want to keep as the collateral. It is a secured loan type that attracts a lower interest rate. It is one of the reasons why people apply for it. It is as they are able to manage the repayments owing to lower rates. The final loan amount could be in crores. But that’s dependent on your credit score, repayment and income profile other than the LTV of the ‘to be mortgaged property’.
For what purposes you can use the LAP loan money?
Most of the borrowers apply for the loan against property facilities to cover their numerous needs. But some of the immediate reasons include:
- To consolidate high-interesting yielding debts consuming a large portion of the income.
- To arrange funds for an upcoming marriage in the family.
- To expand an existing business or to start a new one.
- Handling the expenses of an urgent medical emergency.
- To finance the higher education of children.
- For buying a second home.
- For all other personal needs.
What are the features and benefits of the LAP loan?
Other than offering a significant loan amount at a lower rate, the loan against property also comes with many incredible features and benefits. Let’s take a look:
- Higher loan amount
Based on your LTV value and other eligibility factors, you can get larger amounts. Thus, no matter what your needs, you can meet all with a single source.
- Funds disbursal in 4 days
Once you apply for the loan on house property, then you don’t have to wait for a long time to get the required funds. If you are the right candidate, then your loan request could be approved fast with funds disbursed in your bank account within 4 days.
- Flexible repayment tenor
Leading lenders in India provide you with the LAP loan tenor ranging 2 and 20 years. This way, you can repay the loan against industrial property or any other property conveniently.
- Lower interest rate
Since your property is the collateral here, the applicable property loan interest rate is affordable. It means that you can make the most of it and repay smaller EMIs. What’s more, you can also negotiate for even a lower rate if you have a robust credit score and income profile. You can know about an exact EMI amount by using the loan against property EMI calculator available free on a lender’s website.
- Minimal prepayment charges
At any point during the LAP loan tenor if you wish to prepay some amount, then you can do that. Renowned loan providers come up with lowest or negligible repayment charges. Once you prepay, then you can benefit from paying lower EMIs and interest.
How to apply for the LAP loan online?
You can follow the below easy steps and apply for the loan on house property online:
- Land on the website of the lender that you want to apply with and fill the online loan against industrial property form.
- Once you submit the loan application, then the representative of the lender will contact you within 24 hours. You will also need to submit the LAP documents.
- If you are the right candidate for the loan, then you can get the loan approval within 48 hours.
- Once approved, your sanctioned funds will be disbursed in your bank account within 4 days.
The basics of the loan against property are now discussed. If you wish to apply for it, then you can now do that confidently.
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