How To Apply For Loan Against Property In 2023?

How To Apply For Loan Against Property? Are you looking for an easy way to secure funds for any purpose? You can easily avail a Loan Against Property if you have a property in your own name. You can pledge the property as collateral to the lender the avail up to 80% of the market value of the property. The best thing about a Loan Against Property (LAP) is that you can pledge both residential and commercial properties. Be it any kind of need like funding a daughter’s education, preparing for a wedding, doing a home renovation, buying the latest appliance, or anything else. Let’s get to know how can you apply for a Loan Against Property below.

What Is A Loan Against Property?

When it comes to the most popular secured loans in India, a Loan Against Property (LAP) emerges at the top as borrowers can opt for it for any purpose. In this kind of loan, the borrower needs to put his property as collateral or guarantee against the loan amount. Since it is a secured loan, getting approval for such a loan is extremely easy and quick. Today, almost all major banks and other financial institutions offer attractive offers on Loan Against Property.

Read- How Digital Lending Platforms are transforming the Personal Loan Landscape

Apply for Loan against Property Steps?

If you are looking to avail a loan against property and you have a property that can be used as a pledge, you need to follow a certain procedure to avail of such a loan. Though getting such a loan is not much difficult these days, it is necessary for people to be aware of the entire procedure in order to avoid any mistakes and get the best deal on this type of secured loan. So, let’s take a look at the following steps:

Step 1: Conducted Thorough Research – Just like other types of loan, you need to start with performing thorough research on a Loan Against Property (LAP). Today, there are hundreds of portals available online that provide insightful information about this kind of loan. You can browse through the details of various banks and financial organizations that offer a Loan Against Property to individuals. Check the interest rates, required documents, and loan application procedure, and then decide on which lender to choose.

Step 2: Determine The Maximum Eligible Loan Amount – After shortlisting the best prospective loan service providers, the next thing to is to find out the maximum loan amount you can get against the property you have. You can use the loan amount calculator to get a better idea on the loan amount you can become eligible for. Most lenders would help regarding this whether you are a salaried person or a self-employed individual.

Step 3: - Check The Eligibility Criteria – Do keep in mind that every lender has its own eligibility criteria for a Loan Against Property. So, keep a look at the same to check your eligibility for the said loan. According to experts, it is a great idea to submit a few required documents like your address and identity proofs, income proof, property documents, bank account statement, and latest ITR to get a concrete idea.

Step 4: - Fill Out The Application Form – today, a majority of lenders offer both online and offline ways of filling and submitting loan application forms. However, it is better if you can visit the nearest branch office of the chosen bank or the lender to get more insightful details. However, you can clear your doubts by either calling customer care no. or through the web chat service offered by most lenders.

Once you submit the documents along with the filled application form, lenders examine the risk involved with your loan application. This is usually done by examining the market worth of the asset that is mortgaged, the history of payments on previous debts, the applicant's income and savings, and any potential job or business risks.

Step 5: - Documents Verification And Loan Disbursal – The final step is the verification of the submitted documents and other information. Once this is done, the lender is likely to disburse the approved loan amount to your bank account within 72 hours. However, the time taken for loan disbursal may vary from lender to lender. So, confirm the same during the loan application.

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What Is A Loan Against Property In 2023

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FAQs

1. What Properties Can Be Used As Collateral For A Loan Against Property (LAP)?

A borrower can pledge both residential and commercial properties to get a LAP by a majority of lenders.

2. Can I Foreclose A Loan Against Property (LAP)?

Yes, it is completely possible to foreclose such a loan by giving a written request to the bank or lender. Keep in mind that this may incur some charges.

3. How Much Amount Can I Withdraw?

A majority of banks and lenders offer a loan amount of 60 to 85% of the market worth of the property that is pledged against the amount. 

The Conclusion

In today’s digital age, finding a fabulous deal on a Loan Against Property In Delhi(LAP) is no hard thing as a large number of lenders offer this kind of loan. Since it is a secured loan, getting the same is not at all difficult. However, it is recommended to do thorough research on all loan offers before choosing a particular lender.

Author: Abhik Das