Process Involved In Taking LAP

A loan against property is a loan which is paid out against a property mortgage. The loan is offered in accordance with the specific percentage of the market value of the property which is usually around 40% to 60%.

In India, LAP falls under the category of ‘Secured Loan Group’. This is because the borrower in such a case has to show his property as security which can either be a self-occupied ownership property or a rented out property. Loan against property comes with an interest of 12 to 15.75% and the maximum tenure which is offered for a LAP is 15 years. Listed below are the purposes for which you can take a loan against your property:

LAP can be taken for following purposes:

• Expanding business
• Marriage of children
• Sending children for higher studies abroad
• Funding dream vacation
• Funding medical treatments

LAP Process

When you want to take loan against property, the first thing which you need to do is look around for a lender with the help of internet. You also need to know the eligibility criteria of LAP which may vary from one bank to the other. These banks usually ask for information such as:

• Your income or savings details
• Any debt obligations
• Cost of the property which you intend to mortgage
• Your credit record
• Repayment track record of the loans which were taken prior to this

The key steps which are involved during the LAP process are:

• Application: The first step is selecting a lender and filling up the application form with all the necessary details.
• Processing: Once you apply, the bank will process the application. During the processing, you will need to carry original documents with you when you go for it. The bank will conduct a field investigation and verify all the documents presented by you. Documents which are required usually include income proof, age proof, address proof, identification proof, property papers, and employment details.
• Loan sanction: Once the bank verifies all the financial credentials, it will work out a loan eligibility amount for you. The bank further mentions the decided amount on the offer letter. If the loan amount is fine for you, you can accept it by putting your signatures.
• Legal check and valuation: The bank will now further conducts a legal check on the property which you intend to mortgage.
• Loan disbursal: When the bank is convinced of your loan replacement capacity, it will disburse the loan through a demand draft (DD) or a cheque.

When planning to take Loan agian property, it is important to consider your pay off capacities beforehand and if you are unable to pay it back, you may stand at the risk of losing your mortgaged property. You can take up Pnb Home Loan Services available In Delhi NCR India.

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