Loan Against Property to fulfil your dreams
Loan against property or LAP is a mortgage or secured loan availed after pledging a property as collateral. The interest rate starts from 8.90% p.a to 11.00% p.a. You can avail of LAP up to 80% of property value for maximum of 15 years.
Looking out for Loan
Loan Against Property by One Solution
Do you know that your home holds the key to your future? Whether you want to expand your business, or you need funds for your personal use, our Loan Against Property will cover all your financial needs. We offer an array of attractive options based on your specific needs along with flexible property loan tenure and attractive interest rates.
Our loan on property has unrestricted usage and can be used to avail a Loan against property, mortgage loan against property, business loan against property, and much more.LAP Loan Amount
₹ 5 Lakhs – ₹ 5 Crores
LAP Loan Tenure
12- 240 months
Easy approval & sanction
Loan against property is a secured loan and eligibility criteria are easy to meet. You can apply for high-ticket LAPs for education, business or personal reasons and avail of financing up to Rs. 15 crore with minimum hassles
Flexible tenure & EMI
The interest rate for a loan against property starts from 8.90% p.a. You get a higher loan amount at affordable EMI. Unlike personal loans, property loans cost less and offer greater repayment flexibility with longer tenure option.
Avail Top Up
A loan against property offers you maximum liquidity value for your property. You can avail of financing for up to 15 years. By choosing a long-tenure property loan, you get lower EMI option and ease of repayment.
Properties Covered Under Loan Against Property
Loan against residential property
Loan against industrial property
Pre-Qualified Top Up on Property Loan
Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as a collateral to support the finance provided by the lender. The margin for Loan against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value).
Features and Benefits of Loan Against Property
- Easy to get: LAP is a secured loan making it easier for lenders to offer money to the borrower as it is backed by collateral.
- Longer tenure: Usually banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate repayment period of up to 20 years.
- Lower interest rate: In comparison to Personal Loans, a LAP loan has a lower rate of interest. The reason is the security offered to the banks.
- Lower EMI: When you have longer tenure and a lower interest rate, the EMIs are bound to be lower.
- Flexibility: Various banks have flexible loan products in this category, including term loans, overdraft facilities, reverse mortgage, etc.
- Types: LAP can have various types, such as loan against residential/commercial property, loan against rent receivables, reverse mortgage, and so on.
- Tax benefits: You get benefits tax benefits if you avail a loan against property for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to be mortgaged to the bank. You might carry out repairs to your home but avail a mortgage loan by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.
Loan Against Property Eligibility
Each lender has their own eligibility criteria for availing LAP. Below are some common criteria to be eligible for a mortgage loan:
- Age: Minimum 21 years and maximum 65 years.
- Profession: Both self-employed individuals and salaried persons with a regular source of income are eligible for a Loan Against Property.
- Joint applications: Co-applicants are permissible. Lenders can accept the income of the co-applicants for arriving at the eligibility.
- Ownership:
- The applicant should have unencumbered property in their name. The property can be residential, commercial, or industrial.
- Agricultural land is not acceptable as security for the loan.
- Many banks stipulate that the property should either be vacant or self-occupied.
- Some of the banks do not consider a property that is let out on rent or lease to third parties.
- Some lending institutions sanction loan against vacant residential plots
- Margin: The margin requirement for Loan Against Property can be 10% to 50% of the market value of the property.
- Current obligations: The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs including the proposed one for the Loan against Property. Hence, it is imperative for the borrowers to declare their current obligations.
- Credit history: The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.
Mortgage Loan Interest Rate & Charges applicable by Property Type
-
- Upfront fees: Many banks follow the procedure of collecting upfront fees for processing the application. They adjust the fees with the processing fee in case they approve the loan. Remember, this is a non-refundable fee. It is usually in the range of Rs. 3,000 to Rs. 5,000.
- Processing fees: The regular processing fees are in the range of 0.50-1.00%.
- Valuation charges: Normally, these charges are included in the processing fees. But, some banks charge it as a separate entity. These charges are payable to the valuation engineer who determines the value of the property and submits the valuation report to the bank.
- Legal scrutiny charges: Similar to the valuation charges, some banks include these charges in the processing fees. At times, you have to incur these charges separately. It is payable to the advocate who conducts the legal search of the property and submits the Legal Scrutiny Report.
- Mortgage registration charges: Some states in India do not require the registration of the equitable mortgage. It is compulsory in states like Tamil Nadu. You have to incur these charges (0.5% of the loan amount subject to a maximum of Rs. 25,000 as stamp duty and Rs. 5,100 as equitable mortgage registration charges).
- Prepayment charges: Some banks charge prepayment charges to the tune of 2% to 5% of the outstanding loan It depends from bank to bank.
- Insurance: Insurance of the property to be mortgaged to the bank is compulsory. Also, some banks have tie-ups with insurance companies who market their products like loan insurance, health insurance, and personal accident coverage. These are optional charges.