If you need a long term loan at reasonable rates of interest Loan against Property is the loan choice for you. You will have to provide an existing residential flat or office property as a security for the loan and the eligibility loan amount will be decided based on your income as well as the market value of the property. You can use the loan for your business, higher education needs, personal consumption needs or any other purpose except speculative purposes. Banks can also offer Loan against property as an overdraft facility where you pay interest only to the extent you utilize the loan. We have a network of providers who will compete to provide you the best deal. You can choose based on the
- Amount of loan available
- Interest Rates
- Lowest EMIs
- Regular EMI loan or Overdraft facility
- Processing and other Fees
- Loan tenure
Or any other parameter that is important to you
Eligibility criteria for LAP
What are the eligibility criteria for one to apply for LAP?Apnaloan.com Research Bureau
23 May 2008
The loan amount sanctioned depends on a host of factors. Primarily, it depends on your income, the cost of the property to be mortgaged and repayment track record is also a deciding factor. So, while you are looking for a loan against property lender, simultaneously make concrete efforts to identify a property. The eligibility criteria for loan against property will vary from one bank to another.
Salaried Individuals:
Eligibility criteria for salaried employees are broadly along the following lines:
- Minimum age of applicant: 21 years
- Maximum age of applicant at the time of loan maturity: 60 years
- Minimum Net Monthly Income: Rs. 12000 p.m.
Self-employed Individuals:
Broad eligibility criteria for self-employed employees:
- Minimum age of applicant: 21 years
- Maximum age of applicant at the time of loan maturity: 65 years
- Minimum Annual Income: Rs. 150000 p.a.
Loan amount:
The loan is given as a certain percentage of the property's market value (usually around 40 per cent-60 per cent). But the threshold amount too is generally defined by most lending institutions like say, minimum Rs. 25000 and maximum Rs. 1.5 crore.
Tenure of work experience:
If you are salaried/self-employed, banks take into account the number of years you have remained in service/profession.
Repayment Capacity:
The lender evaluates your repayment capacity based on your income, savings, and debt obligations, other than household expenses.
Based on this information the lender decides on the amount of loan that you are eligible, after considering your previous debts and obligations.