Loan against properties provides you with a greater benefit at a lower interest rate. It allows you to get many advantages in your business by using your idle property as collateral. The best aspect about this loan is that because you are using your home as collateral, you may obtain a large sum from it. It also lets you maintain control of your property without having to worry about meeting your financial obligations. Some frequent reasons for applying for a LAP include business development, funding a new project, or repaying existing debt.
Though applying for a LAP is quite straightforward, we completely understand if you have a lot of questions about it. This post is dedicated to answering all of your queries regarding a LAP. From the application procedure to the loan against property EMI calculator, we have covered it all.
What Is a Loan Against Properties, and What Are Its Features and Benefits?
Loan against properties is a secured loan where you can get funds by mortgaging your residential or commercial property. This loan is available at a low-interest rate and can be used for multiple purposes, like purchasing a new plant or machinery, financing a new project, or maintaining your working capital or cash flow. It is the best way to make use of your idle residential property to gain more financial benefits. The best part about this loan is that since you are keeping your property as collateral, you can acquire a big amount from it. Also, it allows you to keep possession of your property without worrying about paying your financial responsibilities.
Features and benefits of loan against property
- The amount of your property loan might range between INR 50 lac and INR 15 crore, based on the market value of your house and other eligibility conditions.
- The loan-to-value ratio might be as high as 75% of the mortgaged property value. As a result, you will receive sufficient finances to achieve your objectives.
- LAP repayment terms are flexible and can last up to 15 years, making it easier for you to pay off your EMIs in the selected loan period.
- The interest rates of this loan are very appealing. So, you can get a large amount of loan at a reasonable interest rate.
Who Can Apply for a Loan Against Properties?
Because several criteria influence loan against properties eligibility, not everyone is eligible to apply. Here is a list of qualified candidates to help you understand who can and cannot apply for this loan.
- Self-employed individuals
- Traders
- Service providers
- Manufacturers, and
- Business entities
What Are the Mortgage Loan Eligibility Requirements?
The eligibility criteria for a mortgage loan are given below:
- You must fall in the age bracket of 25 to 75 years.
- You must be a resident of Indian citizenship.
- This loan is for self-employed individuals only with a consistent source of income.
- Salaried individuals are not allowed to apply for this loan.
- You must have been in the present business for at least three years.
- There are no criteria for a fixed monthly income.
What Is a Loan Against Property EMI Calculator, and How Does It Work?
A loan against property EMI calculator is a customised tool that enables you to calculate your loan against property monthly instalments in anticipation. It helps you to efficiently organise your funds and get an estimate of your EMI amount before you apply for a loan. For calculating EMI, the calculator considers three variables: loan amount, payback term, and interest rate. All you have to do is enter the variables to achieve the desired outcome.
In a few easy steps, you can calculate your EMI using a loan against the property EMI calculator. First, you must adjust the loan amount and interest rate in the calculator and then choose the payback duration. As you enter all of these parameters, the LAP EMI calculator will calculate an estimate of your EMI. You can adjust all these attributes to get an EMI amount and decide which combination works best for you.
How to Apply for a Loan Against Property?
The application process for LAP is very simple. First, you need to select a financial institution. Then, examine assessments of companies that provide quality service and have a positive market recognition. The overall process for LAP might take around five to six business days to complete, beginning with your designated relationship manager reviewing your eligibility criteria and submitted documents. After that, you have to wait for three to four business days for financial evaluation, and finally, your loan will be sanctioned after the evaluation process is finished.
Are There Any Charges Associated With the Morgage Loan?
When you apply for a loan against property, you will be charged a set number of fees. These fees include a processing fee, which is paid to cover the costs spent during the loan processing. You will also be charged a legal charge for analyzing the risk in your loan profile by compiling all legal documents, reviewing the paperwork, and inspecting the property in person. And lastly, charges for loan prepayment and foreclosure that are decided by the interest rate. The expenses of prepayment and loan foreclosure are detailed in your loan agreement. Therefore, we urge that you thoroughly study all loan-related documentation before applying. When you are eligible for a loan against properties, all you have to do is submit your documentation and wait for your loan to be granted. This loan is the quickest, and with tools like the loan against property EMI calculator, you can simply figure an expected amount of your monthly EMI to prepare yourself before your loan payback period begins.
