There are about nine types of loans against property (LAP) in India and most of them allow customers to borrow money for high ticket purchases, such as financing their business needs or paying for their education. Borrowers can avail of the loan against property for themselves by keeping an immovable asset as a mortgage with a lender for 18 years.
This article will give you insight into the different types loan against property that you can apply for in India.
Types of Loans Against Property
Here are the different loans against property in India and what they are given for.
1. Loan Against Property for Self-employed Individuals
Self-employed individuals can avail of high-value funds available to them with attractive interest rates of as low as 6.75%, depending on the lender they borrow from.
2. Loan Against Property for Salaried Employees
Salaried employees can get loans availed to them and they can use it to meet diverse needs like weddings, travel, home renovation, medical emergency, etc.
3. Loan Against Property for Home Renovation
To make your house look more modern, by installing the latest lighting systems, floors, bathroom fittings and kitchen cabinets, you can get a loan against property for home renovation.
4. Loan Against Property for Education
A loan against property for education can finance your entire tuition fees, accommodation, travel, food expenses, flight tickets, etc.
5. Loan Against Property for Wedding
A loan against property for a wedding can cover venue bookings, food and beverage expenses, pre-wedding photo-shoot, exotic honeymoons, and all other marriage expenses.
6. Loan Against Property for Debt Consolidation
A loan against property for debt consolidation allows borrowers to merge multiple debts easily and save more on EMIs.
7. Loan Against Property Balance Transfer
This allows borrowers to transfer existing debt with higher interests to a different lender for benefits like affordable interest rates, high-value top-up loans, and more.
8. Loan Against Property for Chartered Accountants
This allows chartered accountants in India to do things like open a new branch, purchase or lease new premises, renovate an existing office, finance a child’s higher education, among others.
9. Loan Against Property for Doctors
In India, doctors can use this type of mortgage loan to purchase and install new medical equipment, renovate their clinic or nursing home, introduce new medical technologies, and many more.
10. Loan Against Property Interest Rates
In India, different lenders offer loans against property beginning at an interest rate of 6.75%. This structure often brings customers’ EMIs down to Rs.649/lakhs. And with little documentation, borrowers can access high-value loans to buy, build, or revamp their home, or finance their education or business.
How to Apply for a Loan Against Property
Below is a step-by-step guide for a loan against property application:
Step 1: Application
Begin by filling out the application form with the following:
- Your name and phone number.
- Your residential address.
- Proof of income.
- Your employment details (for salary earners only).
- The estimated price of the home you want to buy.
Step 2: Document Collection
At this point, you will provide necessary documents such as:
- Proof of identity like a Permanent Account Number (PAN) or driver’s license.
- Proof of address like the latest utility bill.
- Bank account statements dating back to 6 months.
Step 3: Document Processing and Verification
During this stage, the lender reviews the submitted documents and checks for authenticity. Representatives of the lender may also reach out to you within 24 hours of receiving your application.
Step 4: Loan Approval and Disbursal
If your credit score and the application satisfy the lender, they will approve your loan request and you receive the loan amount in 48 to 72 hours after approval, depending on the disbursement speed of the lender.
What is the Loan Against Property EMI Calculator?
The loan against property EMI calculator feature enables applicants to make informed decisions about their home loans. Applicants can use the online calculator to get error-free results every time.
All you need to do is input your details, follow the prompts on the calculator, then click on “calculate” to get your results. This will help you know the amount of loan you are eligible for.
Final Thoughts
Even with the strictest budget, you can enjoy tremendous benefits from lenders who offer loans against property. The application process is simple and representatives are always available to help you through every step of the way should you ever encounter any challenge.
Take a significant step towards achieving your dreams today by applying for a loan against property. It’s one of the best decisions you could ever make!
