Below listed requirements can be met by applying Loan Against Property:-
  • Starting up a new business venture
  • Expanding the existing business venture
  • Medical Expenditures
  • Higher Education
  • Renovation Purpose
  • Working Capital Requirement
Lap can be availed against Residential, Industrial and Commercial Property including a Warehouse or a Land parcel.
A processing fee of up to 1-2 % of the loan amount plus tax is applicable.
Your income and repayment capacity and your Property Type and Its Market Value (as per the Lender) are major deciding factors for determining LAP eligibility.
EMI is referred to “Equated Monthly Instalment� which is the amount to be paid monthly on specific date until the loan is fully paid. The two major components of EMI are the principal and interest which is designed in a way that during the initial years the interest component is higher than the principal component but down the line in later years the principal component becomes higher than the interest component
The estimated amount that is expected to be quoted for the property according to the prevailing market conditions is how the market value is ascertained. It is ascertained by a third party valuer empanelled with the respective bank.
The entire Interest Paid Component can be claimed as Business Expense to avail Tax Benefit.
Various banks offer numerous modes of repayment of loans you can opt from. You can ask for ECS (Electronic Clearing System) or opt for direct deduction of monthly instalment from your salary account as per your convenience. However, it must be noted that the delayed payments would lead to penalty and also you may be subject to paying cheque bounce charges.
After the technical appraisal of the property and verification of the documents you can submit the request for the disbursement of the LAP through Loan street /bank Representatives.
Yes, the loan can be paid ahead of the schedule by making lump sum payment partly or fully. However it will be subject to the prepayment charges that vary from bank to bank. Generally, they vary from 2-4 % of the Loan Outstanding at the time of Closure or Payment in Full.
Yes it’s very important to insure the property for fire and other hazards during the pendency of the loan. The bank may ask for evidence of such insurance on any day. The bank from where the loan is disbursed is the beneficiary of insurance policy.
A fixed interest rate doesn’t change during the tenure of a loan. The customer knows how much to pay exact amount in monthly instalments.
It refers to any type of debt instrument such as loan, bond or credit, that doesn’t have a fixed rate of interest over the life of instrument.