Category Archives: Loan Against Property

08 Feb

Eligibility and Criteria for Loan against Property in Ghaziabad

Are you setting up for your children’s big fat Indian style wedding ceremony? Want to send them to overseas for better tutoring? May be a long vacation to a dream destination with your family is the next thing in your TO DO List? Or you might be thinking of how you should get bigger, your small business to make it an enormous achievement. Is the worry of arranging such a huge quantity to make your dreams come true worrying you? If yes, then Loan against property (LAP) is the answer for all of your doubts.

It is a secured loan type which usually has a longer tenure and smaller interest rate than a personal loan. Anyone who owns a property (self-occupied or commercial), can apply for it. LAP applicant is given a certain particular percentage of the market value of property.

Generally there are a variety of parameters set by banks to apply for loan related products. However, there are certain eligibility criteria that are common for every customer who is applying for all LAP products. Below, we have enlisted some of these common criteria for your reference.

Eligibility Criteria for Loan against Property

The most important criterion necessary while applying for Loan against property is that the property should be a freehold and it has to be self-owned by the applicant.

Another very important common parameters are:

Who can apply for LAP?

To successfully apply for Loan against property or Overdraft loan, you need to be at most one of the following:

Salaried or Self Employed Entities
Salaried Corporate Employees or Salaried Government Employees
Salaried Consultants
Proprietors
Professionals (Doctor / MBA/ CA or other)
Private Limited Companies/ Directors/ Partnership Companies/ Partners (Minimum 51 % Shareholder or partner should be loan applicants)
HUF(Hindu Undivided Family)

Who have miserable chances of getting LAP?

Some applicants with even high collateral value are deprived of loan on various bases. Here’s counting who all are not entitled for securing a loan against property.
Salaried Individuals receiving salary in Cash or Kind only. Or other salaried individuals not receiving regular salary.
Self Employed with Negative Profile or those involved in High Risk Industries (Real Estate Developers / Small BPOs / Share Traders)
Self Employed organizations in net Losses
Politically exposed People

Documents Required to Apply for LAP

Below is the list of documents that are generally required to apply for LAP.

LAP application form
Passport size photograph(s)
Proof of Identity, date of birth, residence and applicant’s signature: Passport, driving license, voters ID, PAN card, ration card, telephone/electricity/water bills.
IT Returns / Computation Of income / Complete set of Audit reports or P&L AND Balance Sheet Duly attested by regular CA for last 3 years
Income proof: (Salaried) Bank account statement or salary slip for the last 3 months, and Form 16.
Business Continuity Proof (for last 3 years), latest VAT / excise / Service Tax Returns for last one year depending on the nature of business.
Bank Account Statements of last six months (may vary as per different bank’s requirements.)
Copy of property documents / papers to be mortgaged along with respective Sanction Map / Municipal taxes.

31 Jan

What you require to identify: Loans against Property

Get Loan Against Property at Lowest Interest Rate

Sending children abroad for education or finance a business requires an ample amount of money, and this amount is not usually willingly accessible for everyone. The most ordinary ways to acquire funds is to take a loan. The loan could be a personal loan for the requisite amount or you could take a loan out on your property.
A loan against property (LAP) is a loan given or disbursed against the mortgage of a property. The loan is given as a definite percentage of the property’s total value, typically 40% to 60%. This loan falls under the secured loan category where the property is used as security. These loans can be taken for a variety of reasons such as financing your business, meeting family obligations such as marriages, purposes of higher education, funding medical treatments or your personal reasons.
The loan can be in use out of your self-occupied or rented residential property. This could be a house or even just a plot of land. To be eligible to apply for a loan against property, banks must approve the following fields of the applicants:

Your income, savings, debt obligations
Cost/value of the property mortgaged
Repayment track record for other loans, credit cards, etc.

While most banks have other criteria as well, these three are ordinary among them all. The interest rates on loan against property range from 12% to 15.75% and the tenure is for 15 years.

A loan against property is one of the most excellent ways to raise money. The only disadvantage of this kind of loan is that if the borrower is not capable to pay back the loan, the bank takes possession of the property which was used as collateral. So, before taking this kind of loan, one should take into account how dependably they would be able to pay back the loan.

10 Jan

Here’s What no One Tells You about Loan against Property

Finheal
Loan Against Property
Tags: EMI, LAP, loan against property, secured loan
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Here’s What no One Tells You about Loan against Property

LAP – Loan Against Property

A loan against property (LAP) is just that – a loan you get against a property you need to keep as collateral. This makes loan against property a secured loan. The borrower gives a guarantee of repayment using the property as the security.

The rate of interest for a loan against property differs from Bank to Bank. The tenure of loan against property can be up to 15 years.

Loan against property is a fantastic way to arrange for funds when you want to meet any type of high expenses. The list below includes (but is not limited to) what it can be used for:

Wedding
Setting up a business
Purchasing a new home/ land/commercial property
Studying abroad
Medical emergencies
Travel/ Vacation/Honeymoon

The financial information, capability for reimbursement, and value of the property are the majority normally assessed. But other common factors banks look at are:

Your income
Savings
Debt
Value of the property mortgaged
Your past repayment record for loans, credit cards, etc.

Benefits of loan against property:

The long tenure of LAP makes the EMI more reasonable
The loan amount is much superior as compared to a personal
As it is a secured loan. the rate of interest is lower compared to any other unsecured loan
You have the chance of liquidating LAP whenever surplus funds are available without incurring a prepayment penalty
LAP can be easily refinanced through other lending institutes

28 Dec

How to get a loan against property in Delhi?

Your property is one of your greatest assets. It also holds the key to make your dreams come true. Finheal’s Loans against Property gives you the authority to make use of your residential, commercial or alternate property to finance your dreams. So you don’t have to remain to turn them into actuality.

The Finheal’s Advantage

Loan Amount:

You can avail Loans ranging from Rs. 5 Lakhs to maximum amount.

Flexible Tenure:

You can repay your loan over a period of 12 months to 60 months.

Easy Repayment:

You can repay your loan easily through ECS or even post-dated cheques.

Quick and Easy Processing:

With quick online application and minimal paperwork, our representatives can process your loan in no time.

Floating and Fixed Interest Rates:

Our Loans against Property come with lowest interest rates.

08 Nov

How to make use of Loan against Property to one’s benefit

Purchasing a home is a pointer of our monetary stability. Experts consider that the case of buying a house tops up restrict the buyer’s monetary capability. Though, very hardly any experts say that the home can be utilized in a shrewd manner. This blog post tries to shack light on how you can use your home to attain your preferred financial goals.

Loan against Property

Loan against Property (LAP) can be defined as a form of secured loan received from a bank or a financial institution by mortgaging one’s accessible property. Loan against Property can be used for meeting necessities for, such as introducing a new business venture, its growth, pursuing higher education, medical expenses, working capital necessities etc.

Loan against Property, which can be practiced independently or jointly with extra persons or legal entity, can be taken as term loan with fixed EMI or as an overdraft facility. As an OD, Loan against Property gives the much needed suppleness by serving meet the varying necessities of capital in a business. While Loan against Property has no upper cap on the sum of the loan to be applied, the amount is ascertained by the banks as per the market value of property and reimbursement capability of the applicant. The loan to value ratio usually tends to differ from 45-90% of the property’s market value and can be availed against residential, industrial and commercial property counting a warehouse or a land parcel.

We will explain how one can benefit a Loan against Property

Eligibility: Eligibility for the loan is decided on criteria such as age, income, etc. The eligibility can be ascertained by checking the same or by visiting the bank’s website.

Choose the right lender : One can decide one’s lender by comparing fundamental parameters like interest rates, application fees, processing fees and legal charges of different banks.

Application: On selecting the lender, the applicant has to fill the application form providing information about financial assets and liabilities; property details and other personal and professional details.

Documentation: Loan against Property applicants are mainly for the self-employed section and essential documents is wanted for income assessed.

Checking CIBIL score: The credit history of the applicant is checked through CIBIL score. The CIBIL score goes an extensive way in whether the customer receives the loan or not.

Technical and Legal clearance: Before approving the loan, the property documents are officially genuine as the same act as the safety against the loan. Second is the assessment of the property decides the loan amount to be given as security?

Subject of Sanction letter: After the credit assessment, the sanction letter is issued to borrower giving facts like loan tenure, repayment options and rate of interest which has to be duly established and sent back to the lender.

Disbursal: At the end of all the above events, the loan amount is disbursed with the pledge that the similarities will be repaid within a set timeframe. Businesses can make use of this loan instrument to make the most of their respective business ventures.

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