✅How can I apply for loan against property?

You can apply for a loan in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also check and compare the best against property interest rates for all banks online at www.bankdeals.in and apply for a loan.

✅What is the minimum and maximum tenure of loan against property?

These are generally taken for a longer period of time. The loan tenure for loan against property ranges from 1 year to 15 years, depending upon your eligibility, loan requirement and upon the bank’s terms and conditions.

✅What are the charges for Loan against property?

In addition to LAP interest rates, banks charge the following fees on loan against property:

• Processing fee: The processing fee can range between 0.50% -1% of the loan amount and can be negotiated down, if you bargain.
• Foreclosure fee: This fee is charged when you decide to close your loan before the completion of loan tenure. You also need to read the terms and conditions of your loan agreement carefully to check on the prepayment clause and ensure that it is not too strict compared to market benchmarks.
• Other Charges: Banks charge legal and technical fees from the borrower which are explained at the time of loan processing.

✅How to get loan against property without income proof?

To get a loan against property without income proof, you can consider using any of the following ways:

• You can add a co-applicant who has a good credit history and proper income documents.
• You can explain your income to the bank representative in detail if you do not have an ITR form. The bank statement can prove to be a useful tool in this regard.
• Justify your reason for not filing ITR with a genuine reason, and also consult a tax consultant. 
• If you are continuously practicing good banking habits, then it can prove to be in your advantage.
• You can also choose to accept a lower loan to value and avail the loan instead of getting your loan application rejected.

✅How do I calculate the interest rate on my Loan against property taken some time back? Has it gone up or down in case of floating rate loans?

In case of floating rate loans:

• Most fixed rate loans would offer fixed interest rates for a period ranging from 1 year to 10 years. Fixed rate loan tenure is lesser than the maximum tenure of the loan. From your sanction letter and loan agreement, check the period for which the interest on your loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is same as what it was originally taken at
• In case your loan has converted to floating rate, the loan agreement would specify the formula for the same. The formula may be either MCLR/RLLR rate plus a given spread (in case of banks) or PLR minus spread (in case of NBFC). For MCLR or RLLR rate plus spread loan, just read the spread mentioned in the loan agreement and add it to the current MCLR or RLLR/EBR rate of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective bank or NBFC. You can find the current MCLR rate or PLR of your bank or NBFC at Current MCLR Base Rate and PLR.

✅What are the property documents required by Banks?

You will need to submit copies of the following property documents

• Past title chain – Conveyance deed, sales deed, allotment letter, possession letter
• Copy of approved plan for construction/ extension
• Latest property tax receipt
• Receipt of advance payment towards purchase of property in case of resale or booking with builder

✅Can I apply for loan against property jointly with my spouse?

Yes, you can apply jointly with an earning co-applicant (either be your spouse or your parents). Adding a co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

✅Does it affect my co-applicant if I default in loan against property ?

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well. Both co-applicants are accountable for repayment of the loan against property EMI.

✅Can I take top up on my existing Loan against property?

Yes, you can avail top up on an existing LAP only if you have made timely repayment of EMIs accrued on existing Loan against land. The interest rate charges on top up loans are 0.25 – 1% higher than a property loan and can be availed with minimal documentation

✅Why is a Loan against property top-up loan a better alternative compared to other loans?

Taking a top up loan on existing Loan against property has the following benefits:-

• Lower interest: Interest charged on top up loan is comparatively lesser than the interest charged on a personal loan.
• Lower EMI: As tenure is higher and interest rate is lower on LAP loan compared to personal loan, the EMI for top up Loan against property is lower than that on a personal loan.
• Higher loan tenure: In case of a top up loan you will get the loan tenure equal to tenure outstanding on your existing loan.
• Prepayment penalty: No prepayment penalty is applicable on top up loans.

✅What is the difference between Personal loan and Loan Against Property?

A personal loan is an unsecured loan, while a loan against property is a secured loan. To avail of a personal loan, you are not required to submit any collateral, which is why it’s interest rate is comparatively high. Whereas you need to submit any property of yours as collateral to avail loan against property, and its interest rate is comparatively lower than an unsecured loan.

✅Is it safe to take a loan against property?

Availing a loan against property is a cheaper option than a personal loan. Unlike a home loan, you can avail loan against property for multiple personal or business use. It is safe to avail a loan against property if you are sure that you can repay the loan without any default.

✅Is CIBIL Score for LAP important?

CIBIL score is also one of the important factors to get the loan. Good CIBIL score indicates a strong repayment record and hence, banks can offer you higher loan amount at lowest mortgage loan interest rates. Bad CIBIL Score could mean higher chances of rejection of your loan or getting a loan with high interest rates. So, it is important to make all your payments on time and maintain a good CIBIL score to get the best Loan against property rates.