Loan Against Property- Because Your Dreams Matter The Most

Owning a property is one of the most important assets in India. It can serve the wide spectrum of purposes in your difficult times. Generally, people take loan against property for residential, commercial or industrial properties. It is a secured loan process that is availed against the property mortgage with lower rate of interest and longer tenure. It is the type of loan that fulfills your needs in times of necessity.
Can You Apply?
If you are a self employed individual and want to start a new business with the requirement of huge amount. No matter whether you are an employed professional or an individual, you can easily avail this kind of loan. Without renting and selling you can opt for this option. You can keep your owned property on mortgage and can get the 40-70% of market value as loan. It is the most secured loan with lower rate of interest.
Basic Requisites While Applying for LAP
The property to be kept as mortgage should be in your name.
Different banks offer different packages such as Axis, HDFC, ICICI, SBI and many others.
Another imperative requisite is from the lenders side. It should have any other impediment.
LAP is applied for collateral property. Tenure for loan is 5- 15 years.
When Is The Best Time to Apply?
An individual who is having a property and is encountering financial crisis then he or she should avail LAP. However, Gold Loan is also a good option but due to sentiments attached with it people consider it as the last option. In that case Loan against Property is the best choice. Generally people avail LAP due to following reasons-
Expanding an existing business or to start up a new one.
For wedding of your children.
For urgent medical treatments.
For higher education of your ward.
Advantages of LAP
Value of the asset is created for a productive use.
Approval processing is quicker than home loan.
It also permits the partial pre-closure without levying the pre-payment penalties.
Refinance opportunity can be utilized to increase the loan amount. Moreover they can use the same property continuously.
Borrower does not lose the ownership of the property, however, in case the borrower does not pay EMIs and comes out as defaulter then the lender is entitle to acquire the property.