Are you short of funds for your dream wedding? Don’t fret when you have the option of taking a loan against property. It is one of the most cost-effective loan options one can get to meet their financial goals – be it for funding a marriage, one’s child’s education, a foreign trip, business expansion, or medical contingencies. However, before you plan on applying for the same, find out all about LAP interest rates, features, benefits and a lot more.
Loan Against Property: Features to Consider
Property loans come with exclusive features and a wide range of benefits that the borrower can make use of as per convenience. Listed below are the top features to consider.
Sizeable Loan Amount
With a property loan, one can get a sizeable amount, free of end-use limitations. A good, reputable lending institution offers loan value as high as Rs.5 Crore or even higher. Thus, LAP can come especially handy when you are faced with a sudden credit crunch.
Affordable Rate of Interest
Loan against property interest rates are one of the best among other loans in the market. While a lot depends on the type of interest you choose, your overall profile, repayment history, etc., most lenders offer competitive LAP interest rates, starting from 8.25%, which is quite low and affordable.
Easy Balance Transfer
One of the best LAP loan features is the ‘Balance Transfer’ facility. This allows you to transfer your outstanding principal amount to another lender offering better interest and loan terms. However, to ensure a smooth, hassle-free transfer, one has to first meet the eligibility criteria set by the existing lender.
A long-term financial tool, such as a loan against property, comes with a long, flexible repayment tenor that permits you to repay the amount at your own pace. Eligible candidates can get an extension up to 18 years when opting for LAP loan repayment.
No Income Tax Returns
Yet another best feature of a loan against property is the tax exemption. As per the Income Tax Returns Act, borrowers are to be offered deductions on the paid interest rate under certain terms and conditions.
This is a feature similar to the overdraft facility offered by banks. Using this facility, borrowers can withdraw the required loan amount from the credit limit pre-approved by the lender, and make a prepayment as per their convenience.
Zero to Nominal Charges & Fees
There are no foreclosure charges or part prepayment amount to be paid on a floating rate of interest. This makes way for profit maximization provided the amount is not used to expand one’s business.
Property loans follow a quick approval and disbursal procedure. Once you submit all the documents and get your property details verified, the amount will be disbursed to your bank account in less than 72 hours. However, not all lenders follow this timeline. Some lenders take weeks, so either keep some buffer time or choose a lender known for quick loan amount disbursal.
Now that you are aware of the key features, check your eligibility and calculate your monthly EMIs to get a fair estimate.
How to Use a LAP EMI Calculator
An online mortgage loan calculator can help you compute your eligibility, the loan amount, projected EMI, as well as the percentage you can save by transferring the remaining amount.
Here’s how to use it:
- Visit the ‘EMI Calculator’ section on your chosen lender’s website.
- Enter details – loan amount, tenor and interest rate.
- Wait for the online tool to display your estimated monthly dues.
The calculator follows a mathematical formula to furnish the result. It is accurate, fast and extremely user-friendly.
Loan Against Property: Eligibility & Documentation
Property loan eligibility criteria is simple. Most lenders take into account certain factors, which include:
- Age – Must be between 23 years and 62 years
- Nationality – Must be a residing Indian citizen
- Employment – Must be a working professional with 3 years of experience in the private/public sector or MNC
The entire procedure requires minimal documentation. Check with your mortgage lender regarding the documents you will need to keep handy or furnish at the time of loan application.
How to Apply for a Loan Against Property
Apply online for faster loan against property approvals. Simply follow these steps:
- Visit your chosen lender’s website and access the application form.
- Fill in your personal, employment, and property details.
- Submit the form and wait for the lender’s representative to contact you regarding a quick verification..
- Submit all necessary documents for verification.
- Wait for the representative to evaluate the property in question and sanction the loan amount once approved.
- Get the amount disbursed to your account within 3-4 working days.
Applying for property loans online is easier since you have the option of submitting your details from the comfort of your home, anytime you want. The offline procedure requires you to visit the lender in person and involves a lot of unnecessary paperwork.
A loan against property can be a boon if you know how to make most of its features. Also, don’t forget to compare loan against property interest rates by different lending institutions. Do your research and get the best deals on property loans.