Consumers can raise money by using their residential, commercial, or industrial properties as collateral for a Loan Against Property (LAP), sometimes referred to as a mortgage loan. Loan against property (LAP) can be used for commercial and personal needs other than speculation, just like unsecured personal loans. Banks and HFCs provide up to 20-year loan terms secured by real estate by follow some terms and conditions, to make tenants more clear about loan and its services.
There are some general requirments to full fill the need of tenant but different lenders have different qualifying requirements for LAP, some common requirement in order to apply for a loan secured by real estate: Status of Residence: Indian Residents and Non-ResidentsAge Requirement Minimum: 18 years70 is the maximum age limit.Types of Employment: Salaried, Professional, and Non-Professional WorkersA minimum salary of Rs. 12,000 per month is required.Tenant requires lakh per year of income.
A property loan allows you to unlock the value of Reduced interest rates: Banks and NBFCs can make loans at lower interest rates because the secured structure of the loan significantly lowers their lending risk.No restrictions on the loan's final use: With the exception of speculative activity, loan proceeds can be used for anything, including paying off several high-interest loans, expanding a business, or paying for a wedding.Extended loan term: Banks and NBFCs provide up to 20-year loan terms secured by real estate, which lowers EMI costs.Larger loan amount: Up to 70% of the property value is typically financed by lenders, which leads to larger loan amounts.
