If you're in need of credit and are considering applying for Loan Against Property, then this blog is just for you. We'll break down all you need to know about Loan Against Property so you can make an informed decision.

What exactly is LAP (Loan Against Property)?

A Loan Against Property is a type of loan that banks extend against your property. This is a secured form of loan where the property acts as collateral.

It is also multi-purpose. This means you can use it to fund any big-ticket expense, from starting a new business to planning a big fat wedding.

Features of Loan Against Property

#1. Low Interest Rates

A loan against property is a secured form of a loan. This reduces the lender's risk while approving your loan application, as they can sell the pledged asset to recover their loss if you default. Since the risk with secured loans is lower, you also enjoy a low loan against property interest rate.

#2. High Loan Amount

With a loan against property, you can avail of credit depending on your property's value. This makes it easier to avail of a higher amount at affordable interest rates.

#3. Longer Loan Tenure

Loan Against Property comes with a long and flexible repayment tenure. You can secure a loan against property for up to 20 years which helps you lower your EMIs and repay the loan comfortably.

#4. Simple Eligibility Criteria

As a loan against property is secured by your property, it has very simple eligibility criteria. While the criteria will vary depending on your employment type, some common criteria include the following:

  • You must be an Indian citizen

  • Your age must be between 21 and retirement age

  • You must have all required documents to prove a steady income source

#5. Minimal Documentation

The documents required to apply for Loan Against Property also vary depending on your employment type. However, some common documents include the following:

Last  3 months’ salary slips or Form 16 and 2 years’ IT returns (for salaried applicants)

  • Last 6 months' bank statements

  • Address proof

  • Aadhar card and PAN card

  • All relevant property documents

How to Apply for a Loan Against Property Online?

You can easily apply for Loan Against Property online and get access to credit from the comfort of your home. All you need to do is follow these steps:

  • Visit the official website of your preferred bank and fill out the online application form

  • Enter your personal and property details

  • Fill out your income details and upload the required documents

  • Submit the form

The bank will process your loan application and give an online approval, after which the loan amount will be credited directly in your bank account.

The Takeaway

A loan against property is a great way to fund your big-ticket expenses. Moreover, with leading banks, you can also enjoy the best interest rates in the market with flexible repayment options. Apply for Loan Against Property today and manage your finances comfortably.