Loan Against Property

LAP services have a huge significance in the financial outlook. There are certain factors that are to be considered for a Loan Against Property, or mortgage loan. So, it depends on the conduct of the financial institutions. They set their own guidelines, but most of the time; they are the same.

The age of an applicant is an important eligibility factor. The financial firms keep the criteria from 18 to 70 years, or 25 to 65 years old. There are also criteria for salaries or minimum income. In most cases, work experience for salaried individuals is set at 3 years and above. For the business, stability should be present for the last 5 years. The CIBIL score must be good enough for the lending institution to speed up the process, and provide a hassle-free loan against property. Thus Personal, residential, commercial, and rented properties are all eligible to be mortgaged for this loan.

Myths about loan against property.

Based on the profile and requirements of the client:

• Loan against commercial and residential properties

Based on the current market value, borrowers can mortgage their residential or commercial properties to obtain the amount of loan, to support any type of financial requirement.

• LAP for Self-employed individuals

Self-employed individuals can obtain a loan against property, they can avail a higher amount than regularly employed individuals, the specific amount varies from firm to firm. Thus, it requires to meet the property eligibility criteria.

It is not a lengthy process, but a lot of documentation is involved in the same. Thus, we have prepared a step by step process to obtain a loan against property, as follows:

1. Research and Analysis

A study of the external and internal commercial environment is necessary before applying for such a loan. Thus, research helps the borrowers to choose the right lending firm.

2. Making an assessment of the limit of the amount

Finding out the maximum amount of which the loan can be availed is necessary. It is based on the borrower’s requirements. Thus, the maximum amount obtained differs according to the profile of the borrower. Whether he is a salaried or a self-employed individual. Also, the market value of the property plays a critical role here.

3. Checking the eligibility

The borrower must meet the eligibility criteria, as set by the lending institution. So, it can be the type of property, the age of the applicant, etc.

4. Making an application

Understand the process of loan against property from the case study.