LAP or Loan Against Property is Provided by Financial Institution by Mortgaging the Property of the Customer. It is Secured Loan.

Loan can be taken for personal use by salaries Person and for Personal Purpose as well as business Purpose by a business person.

Under this Product the Bank & NBFCs take all the original Papers of the property & income proof of the customer and keep the documents with their custody and then disburse the loan to the customer.

Few Concept you should know about LAP

  • LAP is a Secured Loan or Mortgage loan, from the aspect of the lender.
  • The Property is kept under mortgage by the lending bank.
  • All Property related papers are kept under the custody of the bank till the time, the loan is completely repaid.
  • During the repayment period, the customer can enjoy the property.
  • During Loan repayment, time Customer can not sell or transfer the title of the property to anybody else.
  • The borrower can not re mortgage it once again to another bank during that time.
  • If the borrower fails to repay the loan, The Bank will take legal action & will sell the property through auction.
  • The Property can be Residential or Commercial type.

Example of Residential Property: Residential Flat, House except for vacant land.

Example of Commercial Property: Shop, Office Space, Factory, Hospital, School, College, Showroom, Commercial Building, Hotel, Restaurant, Movie Hall, etc.

Who Can avail a Loan Against Property?

Loan Against Property can be availed by

who can avail Loan
  • All Indian Resident above 18 years of age.
  • Should be Mentally Sound.
  • Should have documented steady & Standard monthly earnings.
  • Income should be from job, Business or profession which is legal in nature.
  • Customer should not be a defaulter as per record in CIBIL record.
  • The Property should be situated within the Indian Territory.
  • LAP can not be taken for the following reasons which are prohibited:- Gambling, Horse Race, Investment, Buying of Lottery ticket/Share/Gold/or for use in any activity which is either speculative in nature on any criminal activity.

Companies for Lap and their Target Segment

All Nationalized Banks Like: –

SBI, PNB, Bank of Baroda, Union Bank, Etc.

All Private Bank Like: –

HDFC Bank, ICICI Bank, Axis Bank, RBL Bank, IndusInd Bank, IDFC Bank Etc.

All Housing Finance Companies & NBFC Like:-

PNB Housing, LIC Housing, Indiabulls, DHFL, HDBFS, Tata Capital, Aditya Birla, Magma, IIFL, Hero Fincorp, Chola Mandlam, Reliance Capital, Fullerton India, Bajaj Finance, Etc.

Target Segment: –

Any self-employed customer who is running business form last Three Years (Minimum)

Properties & Charges

Eligible Properties for LAP: –

Primarily Residence & Commercial Properties Like: – Shop, Office

Secondarily Properties Like: – Plots, School, College, Ware houses, Godowns, Factories, Industries, Wedding Points, Etc.

Applicable Charges: –

Interest Rates: – Minimum 10% to 18% Reducing Annually (Depending upon Property and Loan Amount).

Processing Fees: – Minimum 0.5% to 3% (Depending upon Property and Loan Amount).

Insurance Amount: – Depending upon Customer’s Age, Property Type and Loan Amount.

Legal Charges: – Amount Vary Bank to Bank & NBFC’s

Technical Charges: – Amount Vary Bank to Bank & NBFC’s

Foreclosure Charges: – 0% to 5% plus GST on Outstanding Loan Amount as per Company rule (Depends on Banks & NBFC’s).

Locking Period: – Minimum 6 Months (Depends on Banks & NBFC’s).

Loan Amount, Tenure, Process and Where to Apply

Loan Amount: –

Minimum Amount Rs. 5 Lakhs to 10 Cr. (Depending Upon Property Value and Loan Eligibility).

Tenure: –

Minimum 12 Months to 180 Months

Process: –

Documentation – Eligibility & Other Internal Check – Legal & Technical of Property – Personal Discussion with Customer – Loan Approval – Agreement Signoff and Loan Disbursal.

Where to Apply: –

Apply Here or Any Legitimate Channel of Bank called D.S.A.