LAP Calculator:
What is a loan against property (LAP)?
LAP is a loan offered to an individual or an organisation on their existing property (residential or commercial). This enables the borrower to retain the property for personal or commercial use and at the same time borrow money against its market price by pledging the property to the bank or financial institution till the loan has been repaid completely.
For what purposes can a Loan against property be taken?
Loan against property may be used for many purposes from a business and personal perspective.
• Business necessities - Business growth, Debt consolidation, balance transfer of existing loans;
• Personal necessities - Home improvement, wedding, higher education etc.
Do I have to give a collateral or security to avail of loan against property?
In this case, the property itself is the collateral. The property documents and title deeds ought to be submitted to the bank or financial institution. The property itself ought to be free from loans, mortgages or open litigations.
How long does it take to get a loan against property?
Once you have submitted all relevant documents and the bank or financial institution is satisfied with the eligibility, the loan will be sanctioned within 7-10 working days. This depends on the financial institution though and subject all criteria being satisfied.
Can I apply for a joint loan?
You can apply for a joint loan along with a co-applicant. The co-applicant must belong to your family
Are there any charges for availing Loan against Property?
Banks typically charge a non-refundable fee for Loan against property. It varies for each bank
What happens if I pre-pay the loan?
The loan may be pre-paid just in case you wish to as this can facilitate in reducing your outstanding loan amount and thereby the loan tenure. Depending on the financial institution and the loan type (fixed or floating), there may be a small charge for pre-payment.
Can I foreclose the Loan against Property and are there any charges?
Yes, you can. All you need to do is get the foreclosure statement from Finwisely or the bank and clear all outstanding balances and submit a foreclosure letter.
