LIC Loan Against Property

LAP/ Loan against property can be taken from banks, non-banking financial Institutions, or housing finance companies by keeping your commercial or residential property as collateral. LAP is a secured loan that can be used to meet all sorts of personal and business requirements. The potential loan amount is decided by the market value of the property.

The interest rate in loans against property

A loan against property is a simple and convenient option for customers to avail loans against their commercial and residential property. Most of the banks offer loans commencing from five lac and loan tenure up to 20 years.

A loan against property can be taken at a fixed or floating rate of interest.

Fixed-rate of interest for availing Loan Against Property remains constant throughout the loan tenure.

The floating rate of interest for availing loans against property varies from time to time depending on the changes in government rules, RBI policy, supply of money, etc.

The interest rate usually ranges from 9% to 12% based on various factors like property type, self-occupied residential or commercial property, non-self occupied residential, or commercial property.

Best companies providing Loan against property

ICICI Bank

HDFC Bank

Axis Bank

State Bank Of India

Eligibility

Most lenders/banks/ NBFCs offer loans against property to individuals above 24 years of age like salaried employees, self-employed professionals, businessmen, etc. The maximum age at the time of maturity should not be more than sixty-five.

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Documents required to apply for a loan against property

The requirements of documents may change for different financial institutions. Usually, the following documents are required for gold loans.

Application form for LAP

Self-attested KYC documents including Copy of PAN Card, Copy of Aadhar Card

Photograph of the borrower

Income proof - latest salary slip, form-16, bank statement for salaried & Copy of ITR and Tax Audit report, bank statement in case of self-employed

Post disbursement documents, if any

FAQs

Q. What are the documents required for a loan against property?

Ans. The requirements of documents may change for different financial institutions. Usually, the following documents are required for gold loans. ? * Application form for LAP * Self-attested KYC documents including Copy of PAN Card, Copy of Aadhar Card * Photograph of the borrower * Income proof - latest salary slip, form-16, bank statement for salaried & Copy of ITR and Tax Audit report, bank statement in case of self-employed * Post disbursement documents, if any ?

Q. How can the loans against property be used for?

Ans. A loan against property is a secured loan that can be used to meet all sorts of personal and business requirements such as medical purpose, education, wedding, business expansion, marketing, promotion, etc. ?

Q. What is LAP?

Ans. LAP/Loan against property can be taken from banks, non-banking financial Institutions, or housing finance companies by keeping your commercial or residential property as collateral.

Q. What is the prevailing interest rate in taking LAP?

Ans. The interest rate in LAP usually ranges from 9% to 12% based on various factors like property type, self-occupied residential or commercial property, non-self-occupied residential or commercial property. ?

Q. How does a loan against property work?

Ans. LAP/ Loan against property is taken by keeping your commercial or residential property as collateral. The potential loan amount is decided by the market value of the property. The loan amount is repaid in equated monthly installments.

Q. What is the difference between a loan against property and a home loan?

Ans. A home loan is the amount of money borrowed to purchase or construct a home, while a loan against property is availed by keeping the existing property as security and the loan amount can be used for various purposes.

Q. What are the eligibility criteria for availing loans against the property?

Ans. Most lenders/banks/ NBFCs offer loans against property to individuals above 24 years of age like salaried employees, self-employed professionals, businessmen, etc. The maximum age at the time of maturity should not be more than sixty-five.

Q. What are the best LAP-providing companies?

Ans. Best Loans against property providing companies are ICICI Bank HDFC Bank Axis Bank State Bank Of India