Loan Against Property

Loan Against Property Overview

Personal Loans are usually of two types i.e. secured personal loan which is secured against the mortgage of immovable property, insurance policies, gold jewelry, investments, etc and another is unsecured personal loan which does not require you to pledge anything. Mortgage Loan commonly known as “Loan Against Property” in India is a secured loan that […]

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Loan Against Property versus Loan Against Securities

Loan against property (LAP) Loan against security (LAS) Instrument mortgaged: property; commercial or residential. Instrument mortgaged: mutual funds, National Savings Certificate, Kisan Vikas Patra or LIC policy or fixed deposits and jewellery. Processing fee: Around 1%. Processing fee: Minimum 0.25%. Margin required: Around 15-20%. Margin required: Around 15-20% of the value of the instrument. Salaried […]

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Loan Against Property 101

Loans against property (LAP) are also commonly known as mortgage loans. It’s a type of loan where a property is mortgaged to acquire a loan. If one needs money to meet one’s short term requirements, one can opt for a LAP because it’s cheaper than personal loan. To begin with, personal loan interest rates are […]

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How is LAP different from PL?

If you can spend a little more time in processing and documentation, a cheaper loan than Personal Loan (PL) is a Loan against Property (LAP). LAP is a personal loan given by mortgaging your house property. The loan is given as a certain percentage of the property’s market value, usually around 40-60 per cent. LAP […]

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Fees & charges for LAP

Very often we fail to read the fine print in a loan document. If you intend to make comparisons with other types of loans, it is necessary to take into account these charges to arrive at the real cost. For example, the processing fee and prepayment fee is lesser in the case of a loan […]

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Documents required for LAP

The documents required while applying for loan against property are similar to those of home loan expect for three additional documents. The documents required will vary from bank to bank. Identity proof: A copy of any of these – passport, driving license, voters ID or PAN card with your photograph will serve the purpose of […]

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Do you need to show proof of Income for Loan Against Property?

Property is generally among the first assets people acquire. But, compared to other assets like say, stocks, it’s relatively illiquid, and poses a bit of a problem when you need quick cash. However, many financial institutions now offer loans against property. So, when Anant Kumar, an engineer with a well-known company, needed Rs. 10 lakh […]

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