- Introduction
A loan against property is synonymous with peace of mind.
Before applying for a loan against property, you must be aware of the eligibility, EMI type, documentation, and loan amount.
- Eligibility
Unlike home loans, the eligibility criteria for a loan against property is majorly dependent on the property's valuation and legal status. If the property is free from litigation, you are good to receive a loan. Some other factors that play a role are the applicant's income profile, credit rating, and age. Usually, 70 years is the last threshold beyond which you cannot continue the LAP.
- Type of EMI
You may either choose a fixed or a floating rate of interest. A fixed interest rate is generally 1% to 2% higher than the floating one. But, by choosing a fixed rate of interest, you may lock in the EMI amount for the entire tenure.
- Documents Required
An applicant needs to submit no more than six to seven documents to be eligible to receive a loan against property. It includes the application form, photograph, age and residence proof, salary statement or business profile, ITR, property documents, and processing fee.
- Loan Amount
The loan amount depends on the valuation of the property and the applicant's credit history. A few reputed CRISIL FAA+ rated lenders to provide you with a loan of up to 90% of the property's market value.
- Conclusion
A loan against property comes embedded with peace of mind. It offers dual benefits. First, you get cash against your idle property. Second, you may use the cash for any purpose. Double-check your eligibility before applying for a loan against property.
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Which one is Good? Loan against property or Personal loans
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