About Loan Against Property
Many of us think when it comes to our mind that what is the source of money or from where they get that money in case if they have to finance their children for higher study in abroad or finance their child marriage and maybe they need finance to start their business.
However, there are lot many ways to arrange that money and one of those many ways is to take a loan. Loan against property is the easiest way to get a loan from any financial institution any financial institution would easily give you loan approx 40-60% amount of your property value.
What is a loan against property?
LAP is the short form of Loan against property, as the name suggests it is one of the types of loan lent by a financial institution or a bank against any property mortgage by loan seeker. The procedure of loan disperse is like that,
- The financial institution will first make an estimated value of your property
- It will be not more than 50-60% of the total value of the property mortgage by you.
- As loan against property comes in a secured category the loan seeker has to mortgage their property.
Loan Against Property Purpose
In day to day life there are many needs and requirement of human beings to fulfil those need one has not many options except to take loan, there are few common purposes listed below:
- For education of your child so that they can pursue their dream
- For your child’s marriages
- For expansion of your business
- For medical treatment
- For funding your world tour etc.
What the Interest rate and duration for repayment of loan against property:-
The tenure of the loan payment varies from 10-15 years from bank to bank and interest rate as per current prevailing interest rate in the market.
What are the Pre-condition for the loan against property:-
These are the condition completely depends on bank to bank, However, some of the common criteria that almost all banks take into consideration are:
- Your CIBIL score (higher the CIBIL score more is the chance of loan approval).
- Value of your property (Greater the value of your property higher the amount of loan disperse usually 40-60%) Your income, your obligation, your debt, and you’re saving.
Get financing for whatever you need now
Enquire NowLoan Against Property Vs Personal Loan
The loan against property is quite different from the personal loan and you need to understand the same, we have shortlisted some of the key difference below for you:
| Loan Against Property | Personal Loan |
| Secured loan | Unsecured loan |
| Low interest rate | High interest than loan against property. |
| EMI is low as interest rate is low | EMI is high as the interest rate is high |
| The amount of loan is directly proportional to mortgage value | Loan value depend upon individual salary |
| Tenure of loan against property ranges between 13-15 years |
Loan tenure for personal loan can be maximum up to 5 years |
Get a Quote
Now apply for a Loan online, All you need to do is provide your details below application form.
