Having discussed the loan against property meaning, a major question to answer is: Why should you consider taking a loan against property? The previously discussed points are basic things to think about while considering a LAP loan.

Nevertheless, a comparison of loans against property versus other loan forms, such as personal loans, in the table below is suggestive of why loans against property remain a worthwhile option.

A loan against property remains the most preferred source of financing for individuals, businesses, corporate or industrial entities in India and other countries alike, and this is based on the above points. More reasons on why a LAP loan might be the best for you are discussed in subsequent sections.

Loans against property interest rates are usually low and cost-effective because they have longer repayment periods spread over several months or years. The interest rates in India vary, ranging from 8.2=35% to 14.5%. Interest rates are set after:

This is conducted in a bid to ascertain your repayment capacity, which enables both you and the lender to reach a repayment option or plan that best fits you.

The interest rate requirements vary among NBFCs and banks alike. However, you can also check a Mortgage Loan Calculator to know your LAP EMI quotient for a loan against a property application.

There are two application categories for loans against property:

• Salaried individuals
• Self-employed individuals

However, it’s important to note that the application process, fees, and necessary documents may vary for different banks, mortgage financing agencies and non-banking financial companies (NBFC) and are likely to be further reviewed at their discretion.

1. Salaried individuals

This is for individuals who are salaried employees of a public or private sector organization, such as public or government, and private sector employees either local or international. The age requirement for this category is between 28 and 60 years, resident in India. Documents to be presented by these individuals include but are not restricted to:

• Application forms
• Valid proof or means of identification
• Proof of existing residence
• Recent salary slips ranging from 3 to 6 months
• Bank statements for the last six months

2. Self-employed individuals

This category of individuals must be business owners, residing in India and aged from 25 years to 70 years old. Documents to be presented by this category of individuals also include, but are not restricted to the following:

• Proof of income
• Valid identification
• Proof of current address
• Proof of business. i.e. business certificate
• Both business and personal bank statements for the last 6 months

Asides from the presentation of necessary documents, also evaluated is the property of the applicant, which is done to ascertain the market value of the property. This is conducted to determine the loan amount that will be offered.

You must repay the loan over the period stipulated, and this is why the loan is set for a long period (2 – 18 years), within a specified age bracket, believed to be your active years where you can repay the loan. Defaulting on the loan empowers the financial institution or lender to take ownership of the pledged property in a bid to recover the loan granted.

Getting financing through loans against property is a veritable means for you as an individual to meet any need that may arise. The benefits of low interest rates, loan tenor and even the opportunity to top-up on the pre-existing loan as offered by several lenders are enough reasons for you to apply for a loan against property today.

Bajaj Housing Finance provides you with the best loan against property options across India – wherever there are branch operations. Take advantage of our competitive interest rates and lenient lending terms and approach us for the ultimate ease of borrowing.
Apply here.