Loan Against property(LAP) is a secured loan which you can avail by mortgaging your property. Banks and financial institutions provides mortgage Loan Against Property for residential, commercial property or land etc. It's a secured loan i.e. in case of loan default, bank can takeover the property and use it to recover loan dues. However the ownership of the property stays with you throughout the whole tenure. You can normally use or rent out the property,in case of loan against commercial property. Only if you can not repay the loan, the bank can sell the property to settle its debts. In case of joint ownership all co-owners need to be co-applicants in the loan.
We at LoanAdda streamline the process of applying for loan against commercial property, residential property/plot by enabling you to compare between best loan against property (LAP)schemes, by teaming up with leading banks and NBFCs. With LoanAdda fund your dreams using your property , whether you are looking to expand your business or need financial aid for personal reasons such as education, home improvement or for wedding or other family occasions,LoanAdda offers loan amount upto 10cr for a tenure of 15-20 years at lowest loan against property interest rates.
Most financial institutions have similar rules and parameters to check your loan against property eligibility depending on your repayment capacity( based on your annual income and past loans and other commitments ) & proper legal and technical verification of the property against which a loan is to be sanctioned. It includes physical visit to the property, ownership verification and valuation of property by a trusted valuer. Though all banks follow different norms the maximum loan amount one can avail is 60% of the property value. At LoanAdda cheapest loan against property interest rates are available, starting as low as 8.50% .
To better evaluate your loan against property options our online EMI calculator helps you calculate your monthly installments for repayment of your Loan Against property. Our EMI calculator is very easy to use.
All you need to do is enter the following information:
1.The Loan Amount
2.Tenor( In Months)
3.Rate Of Interest
And it calculates total amount payable every month until the loan has been fully repaid. Now use your property to boost your business or meet your personal financial requirements with LoanAdda’s various Loan Against property schemes. By using your property as security, you can easily avail a mortgage loan at cheaper interest rates than a unsecured personal loan, also the tenure of your loan against property may be up to 20 years. LoanAdda lets you unlock the value of your property to enable you to fund all your financial necessities. Compare online between best mortgage loans from top lenders with lowest loan against property interest rates on LoanAdda and opt the one best suited to you. Our on call experts are also here to help you at every step right till disbursal of your loan amount.
The illustration below indicates what to expect at every step during the loan evaluation process.
It helps understand how the credit decisioning works in banks and the steps they take before deciding to accept or reject a loan/ credit card.
Applicant Fill Out A Loan Application Form.
Documents Hand Over To The Bank.
Bank Check Your Reports And Cibil Score.
High Cibil Score Leads To Eligibility Check Basis Documentation.
1. Proof of Business - Shop and Establishment Certificate/ Vat Registration Certificate/ Service Tax Certificate.
2. Last 3 years IT tax returns with profit and loss account and balance sheet duly audited by CA.
3. Existing Loans’ Sanction letters accompanied with repayment track.
4. Business profile on the letterhead of the company.
5. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
6. Cheque of Processing Fee.
Most banks follow the same general rules in terms of document requirement. There may be a few changes in certain cases, in which case, our loan officers will guide you personally to complete the documentation process. Salaried individuals.
1. Form 16 of last 2 years or Income Tax Returns.
2. Salary slips of last 3 months.
3. Last 6 months bank statement reflecting salary credits.
4. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
5. Cheque of Processing Fee.
1. Age proof of all the partners in the form of PAN Card, Passport or Aadar Card.
2. PAN Card of the company.
3. Residence proof of all the partners – Utility Bills/ Passport/Bank statement/ Registered rent agreement.
4. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
5. Latest 3 years Income Tax returns with profit and loss and balance sheet duly audited by CA.
6. Latest 12 months bank statement of the Company and of the Partners’ Savings Bank Account.
7. Existing Loans' Sanction letters accompanied with repayment track.
8. Business profile on the letterhead of the company.
9. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
10. Cheque of Processing Fee.
1. Application form duly filled with photographs of directors.
2. Age Proof of Directors - PAN Card, Aadhar Card, passport.
3. Residence Proof of Directors - Utility Bills/ Passport/Bank statement/ Registered rent agreement.
4. PAN Card of Company.
5. Education Qualification - A professional qualification certificate in case of Doctors/CA/Architects.
6. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
7. MOA, AOA, List Of Directors, Share Holding Pattern of the Company.
8. Last 3 years IT returns with Profit and Loss account and balance sheet duly audited by CA.
9. Latest 12 months bank statement of Company of all current accounts and the same for Director’s Savings Bank Account.
10. Existing Loans’ sanction letter with repayment track of company and Individual Directors.
11. Business Profile on the Letter Head of the Company.
12. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
13. Cheque of Processing Fee.
1. Occupancy Certificate.
2. Approved Plan of building.
3. Share certificate copy.
4. Past 13 years Chain of deeds.
5. Nil Encumbrance Certificate - EC (if applicable).
6. Current Sale agreement/ Draft Agreement to sell.
Your eligibility for Home Loan is determined by the following factors:-
Income- must be a salaried or self employed individual with a stable income source.
Age- must be between 24-60 years.
Total assets and liabilities
No of dependents