A loan against property (LAP) is a secured loan offered against a property that the borrower pledges as collateral. The property can be a commercial place, a house, or an owned plot of land. It remains security with the lender until you repay the borrowed loan.

You can apply for a loan against property to meet personal needs like a medical emergency, your child’s education or marriage and debt consolidation, and business needs like working capital and business expansion.

Before applying for the loan, you must know its key features and benefits. So, here’s a look.

Flexible Loan Amounts

You can opt for a LAP or a micro LAP for any financial requirement, big or small. Based on your cash requirement, you can borrow between Rs 5,00,000 and Rs 10,00,00,000 from a leading bank in India. Then choose a suitable tenure to pay off the loan depending on the amount you wish to borrow and your repayment capacity.

Easy Eligibility Criteria

Both salaried citizens like government workers and corporate employees and self-employed citizens like small business owners, lawyers, doctors, CAs, and traders can apply for a loan against property.

The eligibility criteria for the loan are usually simple. Salaried applicants need to be:

• An Indian resident
• 28-60 years old
• Having a minimum monthly income of Rs 7,000

Self-employed applicants must be:

• An Indian resident
• 28-70 years old

The easy eligibility criteria allow more and more people to avail the benefits of a LAP.

Added Benefits of Co-Borrowing

You are allowed to add a co-applicant who is 18-65 years old. If the co-applicant is an earning person (salaried or self-employed) and has a good credit score, this can help increase your loan eligibility. If the co-borrower is a woman (your wife or mother), a renowned bank allows you to access a lower interest rate even if she doesn’t earn money. So you can qualify for a larger loan amount. So you can be eligible for a larger loan amount.

Quick Loan Disbursal

You can apply for a loan against property and enjoy quick disbursal in less than 72 hours at a top lending bank. You can find a team of technical and legal experts who will guide you with the loan application and review it on the spot. So, you can avoid multiple requests for documents and several visits to the bank.

Basic Documentation

The documents needed to get a LAP are basic and are mentioned on the lender’s website. These usually include:

For salaried applicants:

• Filled and signed application
• Identity and address proof (KYC) like your Voter ID card, PAN card, Aadhaar card, etc.
• Income proof like the last three months’ bank statement, the latest Form 16, and the previous two months’ salary slips
• Property documents

For self-employed individuals:

• Filled and signed application
• Identity and address proof (KYC) like your Aadhaar card, Voter ID card, PAN card, etc.
• Income proof like the last six months’ bank statements, the previous two years’ P&L accounts and balance sheets (with schedules), the latest two income returns, etc.
• Property documents

For self-employed non-individuals:

• I filled out and signed the application
• Identity proof like MOA or AOA of company, copy of GST registration, PAN card, etc.
• Income proof like the last two years balance sheets (with schedules) and P&L accounts, the latest two income returns, and the previous six months’ bank statements
• Property documents

If you have trouble paying off an existing LAP at a high-interest rate, consider transferring its outstanding balance to a reputed bank offering a lower rate. If you need some other loan, like a home construction loan, see whether the bank offers competitive interest rates on it as well.