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What is a Loan Against Property
A Loan Against Property, or LAP, is a secured loan. It helps you to find the value of your residential or commercial property by keeping it as collateral. This loan can be used for different needs such as business expansion, education, or personal needs.
My Mudra provides loans from the best banks at the lowest interest rate starting from 8.5% R.O.I. Use your property’s potential to fulfill your needs. Get a loan against property at lower interest rates.
Key Benefits of a Loan Against Property
Lower Interest Rates
As LAP is a secured loan, the interest rates are lower than unsecured loans like personal loans.
For example, instead of paying high interest on a personal loan for a wedding, you can save significantly by opting for a LAP.
Large Loan Amount
You can avail high loan amounts, depending on the value of your property, allowing you to meet financial needs such as business expansion, education, or debt consolidation.
Use a LAP to fund your child’s overseas education or to set up a new factory for your growing business.
Use for Multiple Purposes
Pay for a major surgery, invest in a new venture, or renovate your home using the same loan.
Whether it’s for personal needs, business growth, medical expenses, or education, there are no restrictions to its use.
Tax Benefits
In some cases, especially when used for business or property-related investments, LAP can provide tax benefits under certain sections of Income Tax.
You can claim deductions if the loan is utilized for constructing another property or financing business expansion.
Easy Online Application
You can apply for a loan against property online, making the process fast and convenient with less paperwork.
For example: Complete your loan application from home in minutes without the hassle of repeated bank visits.
Eligibility Criteria to Apply for Loan Against Property
Documents required for Loan Against Property
The documents that are necessary for the identification of the applicant, his place of residence, income, and repayment capabilities are the following:
- Proof of Identity: Aadhar Card, Voter ID, Passport, PAN Card (Anyone)
- Proof of Address: Utility bill-Electricity bill, Gas bill, Telephone bill, Identity proof (Any one)
- Proof of Business Existence: Partnership Deed Copy, Trade License, Certificate of Practice, GST Certificate, UDYAM Certificate
- Evidence of Earnings: Income Tax Returns for the past three years, Statement of Income, Balance Sheet for Profit and Loss, Statement of Assets and Liabilities, Statements from Bank Accounts for the last six months
- Documents Related to Property: All necessary documents concerning the property being discussed
How to Apply for a Secured Loan Against Property in India
Loan Against Property providers with Interest rates
Different banks provide loans against property at varied rates of interest. Here are a few of the top banks that provide these loans at affordable rates.
Banks/NBFCs |
Rate of Interest |
|---|---|
HDFC Bank |
8% p.a. to 8.95% p.a. |
Axis Bank |
7.90% p.a. to 9.30% p.a. |
IDFC Bank |
7.5% p.a. onwards |
Tata capital |
10.10% p.a. onwards |
Loan Against Property EMI Calculator
A Loan Against Property EMI Calculator is an online user-friendly tool created to assist borrowers in managing their finances effectively. This calculator helps you instantly calculate affordable EMIs for your loan against property.
To use the calculator, just enter the following details:
- Loan Amount: The total amount you want to borrow against your property.
- Repayment Tenure: The period for which you intend to repay the loan.
- Rate of Interest: The interest rate that will be charged on the loan.
Based on these inputs, the calculator generates an accurate estimate of your monthly EMI. It is highly useful for financial planning since it allows the assessment of affordability and structures repayments without straining your budget.
With the Loan Against Property EMI Calculator, you can now make decisions, ensuring timely repayment and managing your property-backed loan properly.
Why Choose Loan Against Property Online with My Mudra?
- Convenience: Apply for a loan against property online, from the comfort of your home.
- Quick Processing: Fast approvals and disbursement when you apply online.
- High Loan Amounts: Get access to high loan amounts to meet your financial needs.
- Flexible Repayment Option: Choose a repayment plan that suits your budget.
Frequently Asked Questions About Loan Against Property
Can I continue to live in a property that I pledged as collateral?
Yes, you have ownership of the property and can use your property while repaying the loan.
What is the maximum loan amount I can get against my property?
You can avail up to 60-80% of the property’s market value, depending on the lender’s terms and your repayment capacity.
What is the interest rate of a Loan Against Property?
My Mudra offers highly competitive interest rates, customized to your financial needs. The interest rate for LAP ranges from 8% to 12%.
How can we apply for a quick loan against property?
You can go on My Mudra website and apply for a loan against property. Get your documentation done online. Enjoy quick approval and disbursal of loans.
Does a loan against property require income proof?
Yes, income proof is required as one of the key documents for a loan against property. Lenders assess the repayment capacity of the borrower through income proof.