A Loan Against Property (LAP), also known as a property loan is a versatile financial option for borrowers looking to secure sizeable funds to meet their housing or business requirements. The funds can also be used for debt consolidation. These loans are availed of against real estate assets, such as residential or commercial properties, which in turn serve as collateral.
Under Loan Against Property, with the right credit profile and property value, borrowers can access sizeable funds.
Features and Benefits
Sizeable Loan Amount
Property loans are one of the few loan options that give borrowers access to substantial loan amounts of Rs.5 Crore* or higher, basis eligibility.
Long Repayment Tenor
A Loan Against Property comes with a long and flexible repayment tenor. Borrowers can repay their loan over a period extending up to 17 years. A long repayment period can help borrowers keep their EMIs feasible and interest outgo minimal.
Competitive Interest Rates
LAP is secured by collateral or security and can be obtained at a low interest rate. This can significantly help borrowers in reducing the overall cost of borrowing as compared to unsecured loans.
Flexible End-Use
Loans Against Property can be utilised to cover various expenses, including home renovations or business ventures such as establishing a start-up. They can also be used to consolidate debts.
Loan Against Balance Transfer Facility
Borrowers can benefit from better loan terms and conditions, such as reduced interest rates and additional funds, by transferring their existing loan amounts to Bajaj Housing Finance. This is known as the Loan Against Property Balance Transfer facility.
Documents Required for Salaried Applicants
Salaried borrowers should keep the following documents ready to experience a smooth and hassle-free loan process:
- Latest salary slips and bank account statements of the last 3 months
- PAN Card or Form 60 (mandatory documents)
- ID proof and address proof documents
- All property-related documents
- Title documents of the property you plan to pledge as a collateral
- Income Tax Returns
Please note that this is a generic list and documents required for salaried applicants may vary from lender to lender.
Eligibility Criteria for Salaried Applicants
Salaried individuals who are planning to apply for a Loan Against Property need to meet the eligibility criteria given below:
- The applicant must be a residing citizen of India.
- The applicant must be employed with a public, private or multinational company with a minimum of 3 years of work experience. They must have a stable income and employment.
- They must be between 23 and 60 years** of age.
**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit is subject to change, depending on the property profile.
How to Apply for Loan Against Property?
By following these simple steps, salaried borrowers can apply for a Loan Against Property:
- Access our Loan Against Property application form and enter your personal details, including your name, contact number, and employment type.
- Provide information about the loan type and your net income to help us tailor the best deals for your financial situation.
- Input your PIN code and the desired loan amount.
- After entering the OTP, proceed to the next step and fill in the remaining financial and property-related details.
- Finally, click ‘Submit’.
Loans Against Property offer several benefits to borrowers who are looking to raise a substantial amount at low interest rates with a long repayment tenor. Borrowers can use a Loan Against Property EMI Calculator to plan their finances.
