Loan Against Property
The Loan Against Property (LAP) is a loan offered by the lender- Bank/NBFC/HFC against the security (i.e., mortgage) of a freehold property. The property pledged can either be residential or commercial. Since there is a security (or mortgage) involved, it is considered as a secured loan by the lender and hence is also called a Mortgage Loan in India.
Loan Against Property Purpose
Also referred to as property loan India, LAP can be used for personal as well as business purposes, such as home renovation, house repairs, investment in property, children’s education & marriage, business expansion, closing unsecured loans, etc. Since the LAP amount can be utilized for many personal reasons, lenders keep their margins high in mortgage lending interest rates and therefore the rates are high in mortgage loans because mortgages involve more risk.
Eligibility
- Salaried Person
- Employees of Public and private limited companies
- Public and private limited companies
- Government sector employees including Public Sector Undertakings and central and local bodies
- Minimum age of 21 years
- Maximum age of 60 years at loan maturity
- Minimum net monthly income – Rs. 15,000
The Document Required
- 2 Recent Passport Size Photographs (Valid up to last six month captured)
- Last two month Pay Slip
- Address Proof
- I.D Proof
- Bank Statement of last Three month.
- Documents Valid as Address Proof :
- Ration Card
- Electricity Bill
- Mobile Bill
- Land Line Bill
- Passport
- Mool Niwas Patra
- House Tax Slip Water Bill
- Gas Bill etc
