Under this programme you can use your residential property to meet your long / short term funding requirements. This financing option is a key source of unlocking the hidden value in your property. We advise you, before applying for a loan do a quick check on the following: A loan against property is what it actually connotes — a loan given or disbursed against the mortgage of property. You can now take a loan against your self occupied residential, to expand your business, plan a dream wedding, and fund your child’s education and much more. This is unlike a personal loan, which is disbursed to an individual; no questions asked. The loan is given as a certain percentage of the property’s market value (usually around 50 per cent-65 per cent). If you are Self-employed you can get Loan against Property without income proof.

There are various advantages of taking a Loan Against property (LAP):

To begin with, it works out to be much cheaper than a personal loan, which is usually issued at interest rates in the region of 16 per cent-21 per cent. This is generally on a daily or a monthly reducing balance method. The rate at which LAP is issued is in the 11.5 per cent-15 per cent range. The lower rate is partly because the lending entity has a security in the form of the housing mortgage vis-à-vis a personal loan that is given without any security.

The tenure for a Loan Against property (LAP) is usually longer than that for a personal loan. Generally, Loan Against property (LAP) is given for a maximum tenure of 10-15 years. Since the rate of interest is lower, many a times, LAP equated monthly installments turn out to be cheaper than those under personal loans.

Loan Against property (LAP), just like a personal loan, can be taken for any reason. Also, the criteria for LAP are the same as those for any home loan. Part prepayment as well as full prepayment of LAP is also allowed by most lending institutions; many lending institutions do no levy extra charges on prepayment.

Points to remember

However, the following points have to be borne in mind while applying for a Loan Against property (LAP):

Some financial institutions make LAP available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalizing a LAP from lending institutions. Loan Against property (LAP) is generally allowed against residential property. In other words, you cannot borrow by mortgaging your residential premise. However some ban In fact, even if you own the property, which is rented out, or you own a property but aren’t staying in it (e.g. a farmhouse), then too you might not be eligible to take a loan against that property. But of course, some lending institutions do not have any such criteria. Here too, the borrower needs to be aware of what is on offer and act accordingly.

Many housing finance companies allow individuals to take Loan Against property (LAP) if they have taken a housing loan from them. The only pre-requisite- a minimum of one year’s EMIs need to have been paid on the home loan.

All in all, Loan Against property (LAP) proves to be a useful proposition

No matter what the requirement, we have an appropriate plan for you, though most of our mortgage loan plans are for salaried/self-employed. Get the best deals ever, and finance the perfect loan, only from LoanKaWala.

With our varied offering of mortgage loans, LoanKaWala Mortgage Loans gives you an opportunity to select the perfect loan as per your needs of a dream project.

Documentation

Some documents are specific to each state. For further information, please contact our Hyderabad LoanKaWala office.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the HFC. Service Tax on All Service Charges extra wherever applicable.

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