Let your property take care of your needs. The rise in price for most of the thing increased the requisite of debt.Loan Against Property (LAP) refers to a multipurpose loan which can be obtained by mortgaging your existing residential or commercial property to meet the financial crunch. This loan puts funds at your disposal for crisis like education, marriage, dream vacation, home renovation, debt consolidation or even business expansion. Opting for LAP as a borrower, you will get financial assistance at very reasonable rate of interest and you can expend the amount for any reason.
This loan may be availed by Salaried, Self employed individuals, Partnership firms and Private Ltd companies. Banks have their own set methods to estimate the loan eligibility. However, it ranges from Rs.2 lacs to up to Rs.10 crores. The exact amount depends on your property valuation, income, savings, and existing obligations, credit history and of course repayment capacity. The age limit is fixed between 18 to 60 years. Normally the maximum loan amount can be upto 50% of property value for commercial setups and up to 60% for residential properties.
The loan requires simple documentation, principally an application form duly signed by the borrower, identity and residence proof, income documents; latest six months bank statement, documents to substantiate business existence as and when required and a processing fee cheque. The borrower needs to have a regular source of income to avail the loan. Though, the funds are offered against collateral security, the evaluation of your potential to pay back the loan amount in full is obligatory. These days most of the money lenders are offering these finances online. Online application is less time consuming and gives the aspirants the ease of making the application while sitting in office or home without any hassles.