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What is LAP (Loan against Property)?
Taking a loan by keeping your house, plot, flat, office ( or for that matter any residential or commercial property) as a collateral is called Loan against Property. Loan against property, quite commonly being known with it’s acronym LAP is a kind of secured loan where your property become a security which in case of loan default can be claimed by the financing company. Being a secured loan, LAP carries lower interest rates as compared to personal loan .
Which banks or institutions offer LAP (Loan against Property) in India ?
Almost all leaning banks offer loan against property. Be it nationalized banks, govt banks, private banks or even RBI registered NBFCs, there are many players in the LAP (Loan against Property) business. For best loan against property you may look at some of the following :
Govt Banks dealing in best LAP (Loan against Property)
SBI Loan against property | PNB Loan against property | Bank of Baroda Loan against property | Allahabad Bank Loan against property | Canara Bank Loan against property | IDBI Bank Loan against property | UCO Bank Loan against property
Private Banks Dealing in best LAP (Loan against Property)
ICICI Bank Loan against property | HDFC Bank Loan against property | Axis Bank Loan against property | Citi Bank Loan against property | Standard Chartered Bank Loan against property | Kotak Mahindra Bank Loan against property | HSBC Loan against property | Federal Bank Loan against property
RBI registered leading NBFCs Dealing in best LAP (Loan against Property)
DHFL Loan against property | TATA Capital Loan against property | Fullerton Loan against property | Capital First Loan against property | Aditya Birla Loan against property | India Infoline Loan against property | Bajaj Finserv Loan against property | JM Financial Loan against property | Edelweiss Loan against property
Loan against property advisors or financial advisors of LAP are associated with multiple banks & NBFCs at the same time. So they bring you a holistic comparison of the various LAP products. Also the documentation in case of LAP is complicated, similar to home loans. So applying for a LAP thru a financial advisor helps you iron out the complications.
What is the key things to consider while applying for a LAP ?
Since loan against property considers your property as a collateral, so the first and most important thing is to get your property papers in sync. Your title deed, buyer agreement , civic utility bills etc shud be ready with you. Even if your property is already mortgaged (running on a home loan), you can still apply for a LAP. Though in case of a pre-existing mortgage, the amount of loan which you can borrow as LAP may be lesser as compared to a property which is not mortaged.
The value of loan amount which banks tend to offer you as Loan against property generally ranges between 50-70% depending on various factors such as the age of property, purchase value, current market value, expected growth etc.
If the property which you are going to keep as collateral is under joint ownership, then both/all the persons who are the owners of the property mandatorily need to be co-applicants while applying for loan against property (LAP). Each of the co-applicant will require to furnish their documents such as ID proof, address proof, ITR, photographs etc.
You must also note that the bank or the LAP financing institution appoints a third party independent surveyor to survey the property. The surveyor generally does an on site verification of the property as well.
If you are applying for a LAP thru a financial advisor, your loan advisor guides you on all these aspects in detail.