A Comprehensive Guide to Property Types for Loan Against Property

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Property Types for a Loan Against Property

3 min 19 Jun 2024

Highlights:

What is a Loan Against Property?
Property Types for a Loan Against Property

What is a Loan Against Property?

Loans Against Property is a type of secured loan where the borrower offers a property as collateral to secure the loan. This type of loan can usually be obtained against a variety of property types, depending on the lender’s policies. Generally, the following property types can be used as collateral for a Loan Against Property.

Property Types for Loan Against Property

1. Residential Properties

This includes both, individual houses and apartments. Lenders may offer loans against both self-occupied and rented residential properties.

2. Commercial Properties

These include office spaces, shops, and other commercial premises. Like residential properties, both owner-occupied and rented commercial properties might be eligible as collateral.

3. Industrial Properties

Properties such as factories and warehouses can also be considered for Loan Against Property, given their market value.

4. Vacant Land or Plot

Lenders may also accept vacant plots of land as collateral for Loan Against Property.

Final Words

The eligibility of a property for a Loan Against Property, the loan amount, the loan-to-value ratio, and other terms depend on several factors including the property’s location, condition, market value, and the lender’s policies. It’s also common for lenders to require a clear title, meaning the property should not be under any legal disputes. Before applying for a Loan Against Property, it is advisable to check with specific lenders for their terms and requirements.

*Terms and conditions apply.

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