What is Loan Against Property?
A loan against property is exactly what the name implies a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value, usually around 40 per cent to 60 per cent.
How much I can get?
The eligibility of Loan against Property is calculated on the basis of either the percentage of property value that you own and how much income you have that you can return the emi with.So you can get Loan against property upto annex % of property value and the net amount that you earn after other emi a percentage of that amount can go into the emi.
Eligibility Criteria
Eligibility criterion for banks and other institutions are almost same for salaried professionals, self-employed professionals and self-employed businesspersons. According to the criteria, you:
- Should be an Indian national
- Should be at least 21 years of age at the time of submitting the loan application
- Should have been employed by your current organization or been involved in your business for a certain number of years
- Should have the minimum required salary or monthly repaying capacity
- Should have submitted EMIs for other loans and made your credit card payments on time for three months prior to submitting the loan application
Documents Required
Depending on whether you are salaried, or a self-employed professional, or a self-employed businessman, banks ask for different set of documents when offering an LAP.
The documents to be submitted when applying for an LAP are as follows:
- For salaried individuals:
- Proof of identity or residence
- Latest salary slips
- Form-16 issued by present employer
- Bank statements of six months preceding the month in which loan is applied for
- A cheque covering the administrative costs incurred by the bank in processing the application
- A cheque covering the processing fee charged by the bank
- For Self-employed Professionals:
- Proof of identity or residence
- Educational qualification certificates, degrees, diplomas, and other academic credentials
- IT Returns of the three years preceding the one in which loan is applied for
- Bank statements of six months preceding the one in which loan is applied for
- For Self-employed Businesspersons:
- Proof of identity or residence
- Educational qualification certificates, degrees, diplomas, and other academic credentials
- Proof of existence of business
- Detailed business profile
- Profit and loss sheet and balance sheets of the company for the three years preceding the one in which loan is applied for
- IT Returns (of both self and the company) of the three years preceding the one in which loan is applied for
- Bank statements of the six months preceding the one in which loan is applied for
