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What is loan against property in india


A loan against property(LAP) is a secured loan that is sanctioned against the asset pledged as collateral. This asset can either be an owned land, a house, or any other commercial premises. The asset remains as collateral with the lender until the entire loan against property amount is repaid.

Is loan against property a good idea?

Loan Against Property (LAP) for obvious reasons is more beneficial than Personal Loan (PL). LAP avails the best offer as compared to PL——- it gives greater flexibility, lower interest rates, higher loan amount, and longer repayment tenure.

What is the process of loan against property?

You need to submit all the necessary loan against property documents including all the KYC documents, income proof, address proof, ITR, bank statements, property documents, and other documents for your LAP application as per the lender's policy.

How much loan can I get against property in India?

The maximum amount with a loan against property that an applicant can avail depends on the employment status. Self-employed individuals can avail an advance of up to Rs. 5 crore while the maximum loan limit for a salaried individual is Rs. 5 crore.

For what purpose loan against property can be used?

A loan against property allows borrowers to use the money for various personal as well as business purposes, such as setting up ventures or expanding it to meet sudden medical expenses. This loan is also relatively easily available as lenders get a guarantee for the money they lend.