What is Loan Against Property?

Loan Against Property [LAP] is a Secured Loan offered against the security of a residential / commercial property, the property could be owned by an individual or a firm. As the Property is the security intended, given by the borrower to the banker as conditional ownership over the property i.e. if the borrower fails to pay back the loan, the banker can retrieve the lent money by selling the property. In LAP the banks would want to know the "END USE" of the loan

 

Who is eligible for Loan Against Property?

A person with stable monthly income is eligible for Loan Against Property

• Salaried Person.
• Business Person with stable income & business.
• A Partnership or a Pvt. Ltd. company.
• Professionals with stable income & business.

Eligibility Criteria

The following are the eligibility criteria depending upon the income profile- 

Salaried Individuals:

• Any individual who is in permanent service in government or a reputed company
• The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to the age of superannuation

Professionals:

• Professionals (ie, doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, and management consultants only) can apply
• The applicant should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity

Self-employed Individuals:

• Any individual filing Income Tax returns can apply
• The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity

Lease Rental Discounting (LRD):

• All resident individuals can apply. The lessee must however be a company as defined under the Companies Act, 1956. Funding will be done only against ready commercial property. The same will be restricted to 85% of the net present value of the future rentals or 50% of the value of property, whichever is lower.