A loan against property is a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value, usually around 40 per cent to 60 per cent.
Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
As the name suggest, it is a kind of a loan that is against the security of one’s property and also known as Home Equity Loans. It is designed to meet the financial needs of a person who already owns a house, which is free from any encumbrance which means it is not given as security for any purpose.
Let us put this term into more simple words for you, a loan In other words it actually connotes a loan given or disbursed against the mortgage of property. One can now take a loan against one’s self occupied residential or commercial property, to expand his business, plan a dream wedding, or fund one’s child’s education and much more. However, one needs to give a declaration stating that these funds will not be used to carry out any illegal activities or for any speculative purpose.
Eligibility for LAP
The eligibility of a loan against property depends upon various factors including the following important ones:
1. Income of applicant
2. Credit health of applicant
3. Property type
4. Property value
You can apply for an attractive offer with best possible rate of interest and terms for Personal, Business and Home Loan.