Do you need a large sum of money to meet your long-term or short-term goals? For instance, you might require funds to finance your child’s higher education or expand your business. In any case, a loan against property can come to your rescue.
What Is an LAP loan?
A LAP loan is a secured loan that you can take by mortgaging your residential or commercial property. So, it is a secured loan. That is why lenders charge a lower interest rate than personal loans.
Moreover, you can also borrow a higher amount than personal loans. That is because most lenders lend around 60 -70% of the property’s value as a loan. So, if the market value of your property is Rs 40 lakhs, you can get a loan of up to Rs 35 lakhs.
Steps of Processing for Loan Against Property
- Fill in The Application Form
You need to start by filling up the loan application form. Here, you have to provide your personal details like your name and address. Moreover, you will also have to give your income details. Your lender will then verify the information furnished by you.
These days, most lenders allow you to fill
- Submission of Necessary Documents
After you fill up the application form, your lender will ask you for your documents. Nowadays, you can also submit your documents online. So, you do not need to worry about visiting your lender. Some lenders might even pick up the documents from your home.
Here is the list of documents required for loan against property
- Identity proof
- Proof of address
- Proof of income
- The title deed of the property
- Verification of The Documents
Your lending institution will verify your documents. They will tally your documents with the information provided by you.
Some lenders might even ask for a face-to-face verification.
- Sanction of The Loan
After verifying your documents, your lender will make the loan offer. In this stage, you can get to know the terms of the loan.
- Evaluation of The Property
If you accept the loan offer of your lender, they will arrange for a site visit. The primary purpose would be to evaluate your property.
The lender will want to make sure that you are the lawful owner. Moreover, they would also like to confirm that there are no legal disputes.
- Disbursement of The Loan
Now is the time to get the money in your account. After the successful completion of the verification process, your lender will disburse the funds to your account. Moreover, you will also get online access to your account. It will help you manage all your funds smoothly.
Do not forget to check the LAP loan interest rate before making a final decision. Comparing the rates of different lenders might help you get a lower rate.
Taking a loan against property has become easier than ever. It can give you access to a huge corpus of funds for all your needs. Make sure you put the money to its best use.