Loan against Property also known as LAP. As the name suggests it is a loan that is given against mortgage of a residential or a commercial property that a borrower might hold. The best part about these loans is that the borrower does not have to disclose why he needs the money for in most cases.
Loan Against Residential Property :Self Occupied / Rented / Vacant : Loans can be availed by Salaried Individual, Self Employed Non Professionals & Self Employed Professionals like Doctor, Architects & Chartered Accountants.
Loan Against Commercial Property : Self Occupied / Rented : Enables customers to meet working capital, growth capital or business expansion.
Here are the lowest Loan Against Property rates by top banks in India. You can select the lender on the basis of the maximum loan eligibility , rate of interest, processing fees, loan to value ratio of the property and approval criteria. Read below the details and compare best loan against property. fynloans offers excellent EMI saving options along with discount on Processing fees & Franking charges
Check Instant Rate QuotesThe process of applying is simple and the team here makes sure that you get the best deal in the market. The expert advise helps you to get lowest interest rates. Some of the top lenders that people choose for loan against property are SBI, HDFC, DHFL, ICICI Bank, LIC among others. So, if you want instant approval for your loan and get the best rate as well, you can apply online through fynloans.
loan against property eligibility means the criteria set by the bank to decide whether you can get the loan or not. The table shows the criteria in general for a loan against property at all banks.
| Parameters | Salaried | Self-employed |
|---|---|---|
| Age | Age should be between 21-60 years | Age must be between 21-65 years |
| Income | Minimum income of ₹1,80,000 p.a. | Minimum income of ₹1,80,000 p.a. |
| Current Experience | 2-3 years of current job stability | 3 years of current business stability |
You can also check your loan against property eligibility to know the maximum loan amount you are eligible for so that you can plan your finance accordingly. Also, other than your income, age and professional stability, your property location and CIBIL score are very important. Lenders, in general, prefer CIBIL score of 650 or above and a authorized location before approving your loan.
The list of documents you are required to have to apply and get approval for housing loans is here:
| Proofs | Salaried | Self-Employed |
|---|---|---|
| Identity Proof | Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License | Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License |
| Address Proof | Passport/Aadhaar Card /Utility Bill | Passport/Aadhaar Card /Utility Bill |
| Residence Ownership Proof | Property Documents/Maintenance Bill/Electricity Bill | Property Documents/Maintenance Bill/Electricity Bill |
| Income Proof | Latest 3 months Salary Slips and Form 16. | Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc., |
| Business Existence Proof | NA | 3 years old Saral Copy /Shop Establishment Act /Any Tax Registration Copy /Company Registration license |
| Job Continuity Proof | Current Employment Certificate /Current Job Appointment letter (if it is more than 2 years) /Experience Certificate (including your previous job certificate or appointment and relieving letter) | NA |
| Bank Statement | Latest 1 year statement where your salary is getting credited | Latest 1 year bank statement both current and savings. |
| Property Documents | Copy of agreement executed / Sale Deed, Share Certificate, Latest Maintenance Bill, List of documents & sanction letter given by Existing Banker (If Applicable) | Copy of agreement executed / Sale Deed, Share Certificate, Latest Maintenance Bill, List of documents & sanction letter given by Existing Banker (If Applicable) |
| Advance Processing Cheque | Required | Required |
| Investment Proof | Fixed Deposit/Shares/Fixed Assets, etc. | Fixed Deposit/Shares/Fixed Assets, etc. |
| Passport Size Photograph | Required | Required |
The calculator takes into account basic details such as the loan amount, interest rate and tenure. So, compare different loan against property EMIs based on the rates offered by banks and NBFCs and then choose the best one for yourself.
Monthly Income
The higher your income, higher the loan amount eligibility and greater your chances of acquiring your dream home. Before disbursing the loan, lenders do check your monthly income in order to be assured that you can repay the loan without any default. Your monthly income can either make or break the situation for you.
Age
Age is another factor that majorly affects your loan against property eligibility. You need to meet the specific criteria to become eligible for a loan. Though different lenders set a different age limit for applicants, but 21-65 years is common amongst most loan against property lenders. So, to make yourself eligible for a loan against property, it is important that you fit into the age eligibility criteria.
Property Value
Choosing a good property in an approved society, colony or area is viewed more favorable by banks. Actually, the value of your property also gives its contribution when it comes to loan against property eligibility. The net value of the property is the main parameter depending upon which lenders decide the loan amount for the applicant.
Credit History
Your credit history can open or close the gate to your dream home. Even though you may earn good, but a bad credit score can almost shut the door for you to buy your dream home as lenders can reject your loan application in this case. For a hassle-free loan journey, it is very important to maintain a good credit score of 650 or above so that lenders can easily approve your application. You can also check your credit score in two minutes at fynloans.
Employment Status
If you are a salaried person, you must have minimum 2-3 years of work stability in your current organization. Whereas, in case of self-employed, a minimum 3 years in current business is required in order to become eligible for a smooth loan against property journey.
Professional/Business Status
As a self-employed professional or a businessman, you must submit your professional details, business status record and bank statements as proof of your financial stability. Once you meet the criteria, your loan eligibility automatically increases.
Relationship with Lender
A good understanding with the bank can go a long way in negotiating a good loan amount at lower rates. Through this way, you can easily avail a high loan amount and that too at competitive rate of interest without any hassle.
Your Employer Category
Working at a well-regarded company not only adds to your profile but also your loan eligibility. A Fortune 500 Company on your visiting card helps in enhancing your eligibility among various lenders.
Here are some of the frequently asked questions that might pop-up in your mind while you think of loan against property.
Q. What is a Loan Against Property?
Regular Loan against property: This is the most common loan taken by a borrower to fulfill any kind of business and personal needs which may include loans for: Education, home renovation, construction of property,business expansion, buying another assets, for marriage or any medical emergency Lowest interest charged on Loan against property is 8.75%. All banks and NBFCs provide property loan for these purposes: like for loan against residential property, while only selected banks offer loans against commercial property. Financing companies are typically more open to extend loans against residential property. Very few NBFCs and bank offer loans against industrial property.
Q. What is the interest rate offered by the lender?
Banks and NBFCs offer loan against property at both floating rates and fixed rate wherein the former is considered to be more beneficial as the rate is consistent until and unless there is a change in the MCLR. The applicants choosing a floating rate of interest get to pay the same EMI for the whole tenure.
Q. What is the maximum tenure for this loan?
The maximum tenure available under this loan is 15 years and it is your choice to select the tenure. The longer the tenure is the lower will be the EMI and vice-versa.
Q. How much loan can you get on your salary?
A loan against property is offered based on the factors such as monthly income (including co-applicants monthly income), monthly savings, bonus, future rental , existing rental, existing EMI andcredit history. If an applicant has all these factors matching which the requirement of the lender, the chances of getting a desired loan amount increases.
Q. What are the other charges involved in the loan?
Other than the interest rates on loan against property, there are additional charges like processing fees, documentation charges, etc. that are deducted from the disbursal amount. However, there are no prepayment charges on a housing loan based on the floating rate of interest provided loan is taken in individual's name and not in the name of a business entity
Q. What are the different ways to pay the EMI?
You can either pay your EMI through post-dated cheques for the tenure of the loan against property wherein the amount will be deducted automatically from your salary account. Otherwise, you can do it via ECS (Electronic Clearing System) wherein the EMI is automatically deducted from your bank every month.
Q. How many co-borrowers can you have in a loan against property?
The maximum number of joint borrowers in case of a loan against property is fixed at 6. However, Indian lenders only consider family members such as parents, siblings and spouse as the co-borrowers. Lenders often suggest you to have a co-borrower who has a robust credit history and good credit score so that it can help in getting a better deal.
Q. Who all can be co-applicant in the loan?
Q.What security do I need to provide to obtain this loan
Q.Who is eligible to get loan?
Loan against Property is given to existing property holders of commercial / self occupied or residential self occupied, rented or vacant properties. Also the borrower’s paying back capacity is looked into by the banks while making a decision. Check out in the information section what documents you might require for getting a LAP
fynloans is a new age loan marketplace which provides detailed eligiblity on the basis of unique internal algorirthm, where data has been craeted after years of reasearch and understanding of financial products. It also helps customers connect directly with the lenders.
| Bank Name | Interest Rate | Processig Fee | Login Fee | Loan to Value | Pre Closer Fee |
|---|---|---|---|---|---|
| ICICI Bank | 9.75-10.5% | 1% | 5900 | 80 | 0 |
| HDFC LTD | 9.75%-10.5% | 1% | 5900 | 60% | 0 |
| Axis Bank | 9.75%-10.5% | 1% | 5900 | 60% | 0 |
| LIC HFL | 10%-10.25% | 1% | 5900 | 60% | 0 |
| CITI BANK | 9.5%-10.5% | 1% | 0 | 60% | 0 |
| IDBI | 10%-10.5% | 1% | 11800 | 60% | 0 |
| HDFC BANK | 9.75%-10.5% | 1% | 5900 | 60% | 0 |
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