Loan against property as the name suggests, is given against mortgage of residential or commercial property. Here the repayment term is longer and amount funded is higher than other options available. Anyone who is in the age group 24-65 years, has a property with clear title and no encumbrances and has a stable source of income is eligible for loan against property.
Details of Loan Against Property
1. Interest Rate - 12-14.5 %
2. Processing Fee - 1-2% of loan amt (plus applicable taxes)
3. Loan Amt - 50-65 % of property value(depending on the type of property)
4. Loan Tenure - Maximum 15 years
5. Pre closure charges - No charges as per new guideline of RBI
1. What are the basic property documents required for loan against property ?
Ans- Basic documents required are title documents and Map.
2. What should be the minimum value of property against which LAP(loan against property ) can be taken ?
Ans- Minimum value of property is Rs.10 lacs.
3. Can I get loan against commercial property also ?
Ans- Yes you can get loan against commercial property also but the minimum area should be 150 sq ft.
4. I am 58 yrs in age and running my business, for how many years can I get loan against property ?
Ans- You can get loan against property for seven years , as the maximum age limit is 65 years.
5. What is the maximum value of loan that I can get on commercial property worth Rs.10000000 ?
Ans- You can get maximum 45% of property value as loan amount, in your case maximum loan amount can be Rs.45,00,000.
6. My father is retired but our house is on his name . Can I take a loan on this property by becoming a co-applicant with him since I am in employment right now ?
Ans- Yes, you can do so . Close blood relatives can become co-applicant.
7. Can I get any tax benefit on loan against property ?
Ans-Yes, you can claim the entire amount of interest paid as business expenses, if used purely for Business purpose.
8. What is the difference between LAP and Personal loan ?
Ans- LAP is a secured loan which is secured against your property where as personal loan is unsecured loan. LAP is for long tenure whereas personal loan is for short tenure.Interest rates are comparatively higher in personal loans.