What is Loan Against Property, and How to Apply for it? - Loan Trivia


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Wednesday 18 January 2023

What is Loan Against Property, and How to Apply for it?

A loan against property is a secured loan that can be availed by keeping commercial or residential properties as collateral. Applicants should know about the interest rates and EMI amount before proceeding. One can use online tools like property loan EMI calculator, eligibility calculator, etc., to assess the expenses and loan affordability in a better way.

Steps to apply for an LAP

Step 1: Navigate the loan against property application form from the BHFL website

Step 2: Proceed after selecting ‘Loan Type’ and ‘Employment Type’

Step 3: Fill up the form with necessary personal and professional details

Step 4: Submit the form and provide the necessary documents

Step 5: Lending institution will sanction the loan after verifying the documents provided

Things to consider while applying for loan against property

  • Higher credit score

Lenders approve loan applications from individuals with a higher credit score. So, applicants should maintain a CIBIL score above 750 to avail property loan.

  • Compare interest rates

Applicants should compare the property loan interest rate offered by different lenders and opt for the affordable one. They can choose between floating and fixed interest rates conveniently.

  • Select suitable tenor

Borrowers should select a suitable loan against property tenor as per their repayment capability. A longer tenor will reduce the EMI amount but increase the total interest outflow.

Besides, Borrowers should know about the process of loan against property and also individuals can check the EMI using a property loan EMI calculator to plan their expenses accordingly. It will help them decide the loan amount as per their requirement and affordability.

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