General Process Of Loan Against Property And Steps Involved
Check your eligibility for LAP
Banks offer the loan amount once you fit in the various eligibility criteria like age, income and salary and your overall profile is verified. At LoanStreet, our superb back-end algorithms and experienced team strives to give you adequate information about eligibility and consequently takes you to the right fit.
Choose the best deal post evaluation
Fundamental parameters like interest rates, application fees, processing fees and legal charges of different banks must be compared first before making the best choice. You can refer to the comparison chart of LAP interest rates at Loan Street to give you a crisp and clear look at different interest rates of top notch banks.
Apply for loan against property
Once the lender has been selected you have to fill the application form and give all the required information about your financial assets and liabilities; property details and other personal and professional details. Our team at LoanStreet helps in fulfilling such responsibilities.
Documentation and Verification Process
LAP caters largely to the Self Employed segment and a lot of documents are needed for Income assessment. Multiple iterations are possible in terms of Fresh Documentation requirement by the Lender. They have to be synced with the details in the application. Our Experts use their knowledge and Experience in the best possible way to ensure a hassle free processing of your Loan.
Credit and Default Check
Bank checks the LAP eligibility of the borrower and also the credit history is checked through CIBIL score. This score is highly influential in the approval of the loan amount. A customer holding low credit score leads to straightaway rejection of the application, as it implies earlier credit defaults. Whereas a high credit score is favourable for the approval of application of LAP. We update you well in advance weather your CIBIL score is enough for you to apply for loans. CIBIL score also helps in getting the best rate of interest.
Legal and Technical Clearance of the Property
Legal documents of property are asked from the borrower to check its authenticity and for security of the loan amount given. Next is the valuation of property determining the loan amount which can be given by the Bank with the property to be mortgaged as the collateral, as LTV for each bank is pre-defined.
Bank sanctions loan and issues a sanction letter to the borrower
Once the credit appraisal of the borrower is done, the bank decides final amount and sanctions the required LAP. Also an offer letter is sent to borrower which has details like loan tenure, repayment options and rate of interest.
Acceptance Copy to the Bank
Once the borrower agrees with the terms and conditions mentioned in the offer letter he needs to send an acceptance copy to the bank.
Signing of agreement and the loan disbursal
Finally, we have reached the final step. Congratulations! As mentioned above Bank disburses the loan amount once the borrower signs the Disbursal Documentation and submits the Original Property Papers/ Assurance that the same will provided within a stipulated loan.
Nine steps? Is it actually this Much? NO Relax
Itâ€™s not this complicated, itâ€™s actually ten more times. That is why we at Loan Street are working hard to use Technology to enable a smooth ride for you on this Roller Coaster, and we will use our Experience and Knowledge to deliver the sweet end result of getting your dreams fulfilled.
Just click here, and enjoy the ride...