Find the Best Deals on Loan Against Property
Your home is your biggest asset. Apart from providing your family with a safe place to eat, pray, love – your house can also help you give shape to your dreams and aspirations by acting as security for an emergency loan.
Salient Features of Loan Against Property
- Whether you wish to finance your child’s education or wedding expenses, or aim to expand your business, you can avail as little as 10 lakhs or as much as 25 crores, depending on the value of your property and your requirement. Loan against property (LAP) can also be used to fund any unforeseen medical expenses or other personal emergencies.
- Avail up to 50 to 70 per cent of your property’s value depending upon the bank, type of borrower and the property offered as collateral. Note that some banks may allow you to borrow more or less depending upon your credit score and other factors.
- You can take out a mortgage loan or loan against property for up to 15 years with flexible repayment options.
- Loan against property interest rates is much lower as compared to unsecured personal loans that can cost you up to 21 percent per annum in interest.
- Fast loan disbursal with minimal documentation. You can get the money in your account in as less as 15 days when you take out a loan against property.
- Loan against property can be availed against both residential and commercial properties, as well as, land. Properties such as banquet halls, warehouses, factory sheds, industrial N.A. Land (non-agricultural land), factory land and building, and pure N.A. land within the municipal limits of the city can also be offered as collateral for the loan against property under special property type.
Who is Eligible For Loan Against Property?
In India, owning a home is not only a dream and a matter of prestige but also a tangible investment that can come in handy in times of need.
Whether it is the cost of your child’s education, wedding expenses, or unforeseen medical expenses, or a business expansion loan – you can mortgage your home and borrow money against it to tide over, both, short-term and long-term needs.
Loan against property is offered by leading banks at competitive interest rates and can be availed by both self-employed and salaried individuals against commercial or residential property.
- Long term working capital for business expansion.
- Funding a new business.
- Child education.
- Wedding expenses.
- Restructuring your debt portfolio.
- Renovations and repairs.
Note that property loans cannot be used for purchasing or constructing a new home. When you take out a property loan, you are required to state the purpose of the borrowing and some banks may actually check the usage of the loan on a regular basis.
To be eligible, you must:
- Be a citizen of India and between 23 and 70 years of age.
- Have a clean record in terms of past loans and statutory payments.
- Possess a high credit rating (which can also help to lower your interest rate).
Other loans against property eligibility criteria include:
- Latest salary slips for salaried Individuals and past six months bank statements.
- Self-employed individuals can give last 3 yrs financials and bank account statements of the previous twelve months.
- A copy of Pan Card or Aadhar Card.
- Copy of latest address proof.
- Income tax returns with computation of income & All schedules to the balance sheet.
- Copy of property documents for the property to be mortgaged.
Types of Loan Against Property
When you take a loan against property, there are several options to choose from, depending on your requirement and the purpose of the loan. Your options include:
- Pure Term Loan with EMI Option – When you opt for a term loan, you avail a fixed amount of money for a fixed tenure at a fixed or flexible rate of interest. This amount is divided into Equated Monthly Installments or monthly repayments, which remain the same throughout the term if you opt for a fixed rate of interest or may change according to market rate if you have opted for a variable rate of interest.
- Overdraft Loan Against Property – An overdraft facility can be compared to an approved loan. Here, the bank will approve you for a certain sum of money, which you can withdraw as and when required. The interest is payable only on the amount borrowed and the duration for which it was utilized.
- Drop line Overdraft Loan Against Property – A perfect solution to meet the fluctuating capital requirements of self-employed individuals and small businessmen, a drop line OD facility combines the features of term and overdraft loans. Here, the bank allows you an overdraft limit against your collateral that can be withdrawn over a fixed term.
Money can be withdrawn as and when required, and the interest is only payable on the utilized amount. However, an additional benefit to the borrower is that the Drop line Overdraft facility reduces the original limit according to a pre-decided tenure, which could be monthly, quarterly, or yearly.
In case you are a self-employed person, a Drop line OD loan against property could be an intelligent solution to grow your business. You can apply for a loan against property online or chat with us on WhatsApp(+91-8425804441) to understand your options better.
Apply Online for Loan Against Property
Loandeals is an independent platform that gives you access to pre-negotiated financial products at low-interest rates from top lenders across India. All our products are handpicked by experts and matched to your requirements to ensure you get the best possible deal in the market for your situation.
One of our most popular products is a loan against property and we have helped hundreds of customers find the right mortgage for their needs. Are you wondering if loan against property is right for you? Here’s what you need to know about loan against property before making a decision:
At Loandeals, you can avail as little as INR 10 lakhs or as much as INR 25 crores depending on the value of your property and your credit score. Money can be used to fund or scale your business or for other personal purposes.
We are committed to making your financial journey simpler and fuss-free. Therefore, we don’t require you to submit any lengthy documentation when you apply for a loan against property and hold your hand throughout the application process so that you can have the funds in your account in less than 15 days in most cases.
Loan Balance Transfer Facility
Do you wish to borrow some money and consolidate your existing debts under a single umbrella loan?
Many lenders offer loan balance transfer facility with minimal documentation and competitive rates that could potentially save you, both, money and hassle in the long run.
A top-up loan is a facility offered by certain financial institutions that allows you to avail some amount of money over and above your initial loan against property. The additional loan can be taken from your existing bank or while transferring your outstanding loan amount to another bank to enjoy a lower rate of interest.
The top up on your loan against property is capped to an amount so that your total outstanding does not exceed 70 percent of the market value of the property. This limit on loan against property may vary between banks, and also depends on your income and credit score. In case you have an existing loan against property and require a top up, chat with us on WhatsApp (+91-8425804441) so that we can find the best possible option for you.
Flexible Repayment Options
When you take out a mortgage loan or loan against property, you can choose a tenure of up to 15 years to pay back the loan at your own convenience. Some lenders allow you to modify the tenure according to your schedule and also allow prepayment facility so that you can be financially free, as soon as possible.
You may also choose a borrow-as-you-go (OD) loan against property and only pay interest on the amount utilized.
At Loandeals, we are in touch with lenders and NBFCs who not only offer competitive interest rates on loan against property but also give you the option of making free early repayments of up to 25 percent of the loan amount annually. Get the money you need in a fuss-free manner by applying for a loan against property online. You can also chat with verified financial experts on WhatsApp (+91-8425804441) to understand the nuisances of loan against property in detail.
We Are Happy to Help
Wish to secure a loan against property but not sure of the best deals in the market?
Today, due to increasing competition in the market, many lenders are offering low rates and additional features to their customers, free of cost. However, most borrowers choose to walk up to their nearest branch and may lose out on other offers in the market due to lack of knowledge or choice.
At Loandeals, we consider it our business to get the best possible loan deals for our customers.
Not only do we offer you the lowest rates on loan against property, we evaluate your situation at length to match you to the best possible loan deal for your situation at the most competitive rate in the market.
But, before that, we explain the entire process to you in detail so that you can make an informed decision regarding your property.
Getting a loan on Loandeals is as easy as saying 1, 2, 3… Here’s how.
Apply for a loan against property now or fill up this contact form to receive a call from a verified financial expert at your preferred time to discuss your requirement in detail. Don’t worry – your information is safe with us. You will not receive any unwanted calls or emails. You can also chat with us on WhatsApp ((+91-8425804441) to resolve your queries immediately.
Frequently Asked Questions
You can apply for a mortgage loan or loan against property in several ways. You can directly visit a bank, contact a loan agent, or get in touch with an expert at Loandeals.
Yes, in addition to the mortgage interest rate, a processing fee of 0.50 – 1.0 percent applies on the loan. However, at Loandeals, we are in touch with several banks who offer exclusive benefits and lucrative offers.
Banks also charge legal and technical fees from a loan against property and other borrowers, and it is important to ask your agent or bank for the complete list of fees and charges to determine the real cost of the loan to you.
Yes. A good credit score is very important to get your mortgage application approved and can also help you secure a lower interest rate. A good credit score or CIBIL score indicates responsible financial behavior, which means lenders consider it less risky to lend to you, improving your chances of approval.
If your credit score is low, you may still be eligible for a loan against property but lenders may charge you a higher rate of interest and may require you to apply for a loan along with a co-applicant with a better credit score.
Yes, you can avail a top up on your existing loan against property, but only if you have been financially responsible and made all your repayments on time.
In addition to a lower rate of interest, look for the following options before you choose a mortgage provider:
- Fixed or flexible rate of interest – what suits you more?
- Processing fee and other charges associated with the loan against property
- Ease of operation and online account handling
- Free prepayment option
- Safe handling of property documents
- The option of the top-up facility at a later date
It is also important to check the level of after-sales service offered by the bank. Don’t forget to check online reviews about how your preferred bank is treating its existing loan customers.