
Any individual or organization having immovable property can take Loan against Property.
Loan Against Property can be arranged for 2 to 15 years of period depending upon the age of the borrower and co borrower.
Loan amount offered by bank depend upon various factors such as Type of Property, Age of the borrower typically mortgage loan are arranged up to LTV of 60-70%.
The LTV ratio differs by type of property. LTV ratio is highest for loans taken against residential property, while LTV ratio is lowest for loan against commercial property.
For industrial property
For residential property
For commercial property
50 - 55%
60 - 70%
60 - 70%
(In exceptional cases customers can get upto 100% of agreement value), for details apply for a Home Loan Now
As name suggest it is a Loan given against mortgage of property, loan against property can be arrange against residential / Commercial / industrial property. It is a secured loan and it is taken by giving property as security.
Loan against Property (LAP) is a secured loan, which helps borrowers to meet their business and personal financial needs by mortgaging their property. Loan against property can be availed by both salaried and self-employed.
Regular Loan against Property
This type of loan is taken for Business expansion, acquiring assets, funding college fee,
Funding dream vacation, for Marriage or Medical emergency.
Loan against Property Overdraft
Borrowers who expect to have surplus income or fluctuating income during the year can opt for LAP overdraft. Under this facility, borrower is charged interest rate only on the principal outstanding and can deposit surplus money in loan account any time. This option is highly suitable for self-employed businessmen or professionals who have fluctuating funds requirements throughout the year.
Loan against Property Top Up
Top up loan is an additional loan amount that you can avail on your existing Loan against property. Lenders apply LTV cap on Loan against the property to calculate your top up loan amount eligibility. This means that the amount of top-up loan plus your existing mortgage loan outstanding should be less than or equal to 70% of the market value of the property. Top up amount eligibility varies from bank to bank based on your income and value of the property and needs a thorough comparison
Application forms need to be signed with photograph for all borrowers.
As name suggest it is simply means that repayment of part or full amount of the loan before it’s officially due. it offers an alluring proposition: By paying what you owe early, you are reducing the amount of interest you owe to the lender, which can save you good chunk of interest in the long term.
When your current rate of interest is higher than current market rate it is advisable to switch from one lender to another, usually lender offer lower interest rate and/or more flexible features. Interest component on your home loan is higher in first 5 to 6 years so it is advisable to do through analysis of saving and cost you will incurred with balance transfer.
You can reduce the effective rate of interest on your home loan by stashing extra funds you have in to your transaction account which is linked to your home loan account. In this the account’s balance (or a proportion of that balance) is ‘offset’ daily against your home loan balance, and as a result you’re only charged interest on the difference between the total loan balance and the amount offset.
This means the lender charges you less in interest because they are not charging you interest on the full, actual remaining balance of your loan.