Finwell Investment Solution is an innovative one-stop-shop for all your financial needs, including Home Loans, Personal Loans, Business Loans, Life Insurance, Health Insurance, General Insurance and more.
Loan Against Property is a secured loan product that can be useful for both salaried individuals as well as businesses. The loan gets sanctioned once you mortgage your residential or commercial property. The bank approves the credit amount, which is equivalent to the current value of the property.
Undoubtedly, a low-interest rate is one of the biggest advantages of opting for a LAP. Since the lenders get the right to make a legal claim on the property in case of any loss, the risk factor is very low for them. Subsequently, they are content to charge a lower interest rate, which lowers your EMI and reduces the financial burden on the borrower.
Secured Loan : The loan is secured against the value of your property. The property acts as collateral, reducing the risk for the lender. This generally leads to lower interest rates compared to unsecured loans.
Loan Amount: The loan amount is determined based on the value of the property you pledge. Generally, you can get a higher loan amount compared to personal loans or other unsecured loans.
Quick Approval of Loan: For a LAP, the process of getting approvals for the loan application is much easier than for other unsecured loans. As said before, lenders enjoy a guarantee for the amount they credit. This security makes these loans far more easily available for borrowers. Also, LAP is available for both self-employed professionals as well as the salaried class. All that the borrower needs to have is certain documentation for submission to the lenders (such as a PAN card, copy of the property papers, address proof, etc.), and they can get the amount sanctioned.
Flexible Tenure : The tenure (repayment period) for a Loan Against Property is usually longer compared to other types of loans, often ranging from 5 to 20 years. This allows for lower monthly installments.
Multipurpose : The loan amount can be used for a wide range of purposes, giving you the flexibility to address various financial needs without any restrictions.
Improves Credit Scores : Successfully repaying a Loan Against Property can positively impact your credit score, as it demonstrates responsible borrowing behavior.
Nationality: You need to be a Citizen of India with documents to prove your claim.
Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.
Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.
Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.
Market Value of Property: Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.
Title of Property: Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.
Proof of identity/residence
Proof of income
Property-Related documents
Proof of Business (for self-employed)
Account statement for the last 6 months
Undoubtedly, a low-interest rate is one of the biggest advantages of opting for a LAP. Since the lenders get the right to make a legal claim on the property in case of any loss, the risk factor is very low for them. Subsequently, they are content to charge a lower interest rate, which lowers your EMI and reduces the financial burden on the borrower.
Secured Loan : The loan is secured against the value of your property. The property acts as collateral, reducing the risk for the lender. This generally leads to lower interest rates compared to unsecured loans.
Loan Amount: The loan amount is determined based on the value of the property you pledge. Generally, you can get a higher loan amount compared to personal loans or other unsecured loans.
Quick Approval of Loan: For a LAP, the process of getting approvals for the loan application is much easier than for other unsecured loans. As said before, lenders enjoy a guarantee for the amount they credit. This security makes these loans far more easily available for borrowers. Also, LAP is available for both self-employed professionals as well as the salaried class. All that the borrower needs to have is certain documentation for submission to the lenders (such as a PAN card, copy of the property papers, address proof, etc.), and they can get the amount sanctioned.
Flexible Tenure : The tenure (repayment period) for a Loan Against Property is usually longer compared to other types of loans, often ranging from 5 to 20 years. This allows for lower monthly installments.
Multipurpose : The loan amount can be used for a wide range of purposes, giving you the flexibility to address various financial needs without any restrictions.
Improves Credit Scores : Successfully repaying a Loan Against Property can positively impact your credit score, as it demonstrates responsible borrowing behavior.
Apply NowNationality: You need to be a Citizen of India with documents to prove your claim.
Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.
Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.
Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.
Market Value of Property: Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.
Title of Property: Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.
Apply NowProof of identity/residence
Proof of income
Property-Related documents
Proof of Business (for self-employed)
Account statement for the last 6 months
Finwell Investment Solution is an innovative one-stop-shop for all your financial needs, including Home Loans, Personal Loans, Business Loans, Life Insurance, Health Insurance, General Insurance and more.