Factors You Must Know About Loan Against Property

Before disbursing the LAP loan, the financial institution checks an applicant's eligibility for the same. The credit history of the borrower determines the monthly payment and loan amount. As a result, before applying for this credit, an applicant must consider a number of things. Factors you may know-

1. Loan eligibility- Before approving a loan, lenders look at the applicant's credit report, CIBIL score, repayment ability, and other factors. Financial firms, on the other hand, impose easy loan against property eligibility criteria because the LAP is secured. For example, salaried borrowers must typically have a steady source of income and work for a private or public company. In addition, they must be between the ages of 33 and 58 years old. A self-employed applicant, on the other hand, must be between the ages of 25 and 70.

2. Selecting the right lender- Because it is a secured loan, a loan against Property offers cash at a low-interest rate. Even so, it's a good idea to shop around and discover a lender who will give you the best deal. For simplified calculations, you can use a Loan Against Property EMI Calculator to apply multiple rates of interest to your chosen loan amount and tenor. 

3. Tax benefits- The house loan tax benefit on a LAP loan is contingent on how the funds are used. Eligible beneficiaries can deduct interest, documentation fees, and processing fees if they are reported as business costs.

4. Repayment tenor- Borrowers have the option of repaying the outstanding debt over a period of up to thirty years. The EMI burden for each month is reduced due to the longer payback tenor. However, it is critical to be aware that it has the potential to increase the overall interest outlay. This problem can be solved by employing particular strategies, such as selecting for prepayment in the event of an excess.

5. Documentation- Another essential factor for a loan against property application is knowledge of documentation.

• Salary slips

• Aadhaar card or PAN card

• Address proof

• Bank statements of at least six months

• IT returns

• Copy of the mortgaged land papers.

Proceed to examine your pre-approved offer for a property loan from various Indian companies offering housing loans, keeping these factors in mind. You may view deals that are tailored for you and get immediate, hassle-free approval by submitting a few basic details. Connect with us on our Loan Against Property contact number, via mobile or SMS/email us to get all your queries resolved related to housing loans.