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Loan Against Property

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Loan Against Property


What is LAP?

Loan Against Property or LAP is the amount taken from the lender or the bank against the property either commercial or non-commercial that you own. This is done to meet one’s financial needs. The important condition here which needs to be addressed is to assure that the property is not given to any other bank for security purposes. The bank diligently evaluates the property against which one expects to get the loan. The evaluation of the property can be done by the bank or any third party valuer. The lender takes various factors into consideration to decide the loan amount and to reduce the risks. The valuer’s evaluation of the property plays an important role in deciding the loan amount. Once the application is submitted to the bank it takes about 7-10 working days for the loan amount to be processed. It also depends on one’s profile and documentation. The rate of interest for such type of loan can be either fixed or floating. But generally, it’s a floating rate of interest.

Types of Loans against Property

1. Loan Against Residential or Commercial Property

The loan against property is a typical mortgage loan that you can take for your SME by pledging commercial or even residential property papers as collateral. The amount of loan sanctioned depends upon the present market value of the property. Usually, you can get between 50-80% of the market value.

2. Loan Against Property Balance Transfer

If you have a pre-existing LAP with another lender, you can transfer the outstanding principal amount. This can lower your interest payments as we can connect you to the best lenders offering affordable interest rates.

3. Loan Against Property Top-Up

In case the existing loan amount is insufficient, you can request a top-up on the loan over and above the existing balance. This will come at a nominal interest rate hike. Your collateral value can be reassessed and an equivalent amount sanctioned accordingly.

4. Loan Against Property Overdraft

We can also offers you an overdraft credit facility on your LAP. In this option, you get a credit line with an upper amount limit. You can withdraw as much as you need within this limit, for the same repayment tenure and loan terms. Interest will only be charged on the amount used, as against the overdraft amount sanctioned.

*Depends on your business financial health and turnover