How To Get Loan – A Detailed Guide for Lender

How to get loan

Hello friends today in this blog I will tell you about how to get loan against property (LAP)

Many of people hires a loan agent to get a loan against property by paying fees of loan agent . Today  I am tell you how to apply for loan on your property in any bank .

What is Loan Against Property (LAP)

A Loan against property  (LAP)  is a type of loan that can availed against a commercial or residential property owned by lender.  As the fund given by bank to the lender can utilize in various purpose like wedding , business expansion , child’s  education and personal uses etc

What are the benefits of LAP

 .  Continuous  ownership – The person who get a loan on his property can live in his house after loan

 .   Simple approval process –  Bank should  approve easily  loan application of lender against (LAP)

.   Attractive interest rates by bank

.   Easy and hassle – free documentation

.  Optimum use of a property

.  Claiming the interest as expenses ( only for businessman )

Eligibility criteria for LAP

If you are a property owner and the property  is free from any loan , then you can take loan by keeping that property as collateral in any bank.

Individuals who can take (LAP)

A  loan against property is offered to the following individuals –

1.  Self -employed Businessmen –    The person who filing income tax return (ITR) and who is over 24 years of age at the time of loan commencement and up to 65 years at the time of maturity. Minimum and Maximum age  may vary from bank to banks

2.  Salaried  – An individual who is in permanent service in the reputed company or  government .

3.  Self-employed professionals –  Professionals such as  doctors, dentists , chartered accountants and engineers can apply for loan .

Documents required for LAP

Salaried individuals

. Application form

. valid photograph

.  valid photo identity

.  Proof of current residence

. Latest salary slips

. form 16

.  bank statements of the last 6 moths

. A cheque for processing fee

Self-Employed professionals/Businessmen

. Application form

.  valid photograph

. valid photo identity

. proof of current residence

. proof of business existence

. certificates of educational qualifications

. For professionals – last 3 year IT returns

.  For businessmen – The business profile last 3 year IT returns

.  Bank statements of last six months both for business and personal

 . A cheque for processing fee

What is the maximum loan amount a person can get in LAP

 The maximum loan amount a person can get against LAP should not exceed above 60 % of the market value of the property. The maximum loan availed will vary from bank to banks

What is minimum credit score required to get LAP

The minimum credit score required to get LAP is 750. The credit score vary from bank to banks

Leave a Comment