What is Loan Against Property?
What is Loan Against Property? A Loan against property or LAP is a loan given by the lender to the borrower against the property mortgaged.
Unlike the unsecured loan, the loan against property involves a security that is the property, which the borrower can mortgage in case the loan is not repaid by the borrower. Hence, it is a type of mortgage loan. In such loans, the market value of the property is calculated and the loan furnished is a certain percentage of the market value of the loan.
For which purposes Loan against property Can be obtained?
Loan against property (LAP) has the low interest rates which can be used for business or personal finance purposes:
- These loans can be used for expansion of the business and meeting the credits of the business and bonafide needs.
- The loans are easy to avail so they can help in case of an urgent medical financing.
- The loans are also useful to facilitate the renovation or repair/extension purposes in the house or flat.
- The loan can be used if there is a marriage in the house.
- The parent can use this loan for sending the child abroad for higher studies.
- One can use the loan to fund a vacation to an attractive tourist destination.
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Chennai Filings offers vaious financial services like home loans, Business loans and term loans etc,Our Financial solutions are designed to help our clients maximize their business opportunities.
Chennai Filings is web portal of Govche India Private Limited with operations since 2007. Chennai Filings is one stop business setup and consulting company, managed by specialized team of Business Analysts,Company Secretaries, Chartered Accountants, Corporate Lawyers and Financial Professionals company headquartered in Chennai, India. Having known for our quality of services, delivering the projects on time, we have clients spread across the globe.
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we will Provide Funds for both personal and Business. Our funding system gives a credit line facility, enabling you to expand your business to new heights
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We will make your business to GST Compliance. Returns are required to be filed digitally online through a common portal to be provided by GSTN
What are the Documents required for Loan Against Property?
- Bank Account Statement for the last 6 months
- Complete loan application form with passport size photographs
- Valid Proof of Applicant's Identity and Address Proof
- Business continuity proof for 5 years
- Financial Documents: Copies of IT returns for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for last two years audited by a C.A.
- Certificate of Incorporation : GST Registration Certificate / Partnership Deed / MoA & AOA
What Includes in this package?
What is process for getting Loan Against Property?
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Application Preparation and Verification of Documents
Our Expert will prepare your application and collect the documents necessary..
Verification of Eligibility Criteria
After Verifying Eligibility Criteria, the application will be submitted to respective Bank or Financial Institution
Follow up
Bank / Financial Institution will check the as per their norms and process the application if they meet the norms
Emi Calculator
FAQs
- Business needs
- Mortgage buyout/Balance Transfer of existing loan
- Consolidation of debt
- Personal needs
- Age
- Income
- Valuation of Property (Fair market value)
- Existing obligations, if any
- Stability/Continuity of employment/Business
- Past borrowing track record
The security for the loan will be the first mortgage of the property to be financed, generally by way of deposit of title deeds and/or such other collateral security.
Customer will have to ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.
The EMI consists of the principal amount and the interest on the principal amount. It is calculated by taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum. The EMI may be subject to change when interest rate changes or a part-payment of the Loan is made.
Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.
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