FAQ's on Loan Against Property

FAQs on (Loan against Property)

Who can avail a Mortgage Loan?

Both for Salaried & Self-Employed individuals / people can avail Mortgage Loan, irrespective of the income.

Which factors determine / verify the eligibility of a mortgage loan?

The factors taken into account while determining their legibility of loan against property are listed below:

  1. Income
  2. Age (Min. 21 Yrs.)
  3. Property Valuation
  4. Existing Liabilities (if any)
  5. Current Work Experience
  6. Financial Documents
  7. Number of Dependants 

How much loan can I get?

You can get a (LAP) up-to 80% of the registered value of your property depending on the Bank’s policy and therefore the property type and valuation.

How would the value / worth of my property be determined?

The value of the (property) would be determined through a valuation conducted by the Loan Provider.

What is the difference b/w a Home Loan & Loan against Property?

There is a huge difference b/w a Home Loan and a Loan against property. Home Loan is taken for the purpose of buying a residential property whereas a Loan against Property can be taken for any purpose.

What are the stages involved in availing the loan?

  1. Application
  2. Processing
  3. Documentation
  4. Verification / Valuation
  5. Sanctioning of the Loan
  6. Disbursement

Is there any processing fee charged by the Bank?

Yes, a nominal fees and charges are to be paid to the Bank depending upon their term and conditions.

What are the documents needed / required for applying for a loan against property?

For Salaried:

  1. Application form with 2 photograph
  2. Identity & Address Proof
  3. Latest Salary Slips
  4. Form 16
  5. Bank Statements (Last 6 months)
  6. Processing fee cheque

For Self-Employed:

  1. Application form with photograph
  2. Identity & Address Proof
  3. Proof of business existence & Education Qualifications.
  4. Last 3 yrs. (ITR)
  5. Last 3 yrs. P&L & Balance Sheet
  6. Bank Statements (Last 6 months)
  7. Processing fee cheque

How much time does the Bank take to disburse the loan?

The processing of the loans usually takes 7 to 10 working days once all the documents are submitted. It also depends up-on your profile and documentation.

Does the property have to be insured?

Yes the property has to be insured against fire, earthquakes and other appropriate hazards during the tenor of the loan.

How can I re-pay my loan?

The re-payment of loan is completed through Equated 30 days Installments. It can be paid through (PDC) Post Dated Cheques or (ECS) Electronic Clearance System

Can I pre-pay my loan?

The loan against property can be prepaid along with the prepayment charges. Usually the bank charges 2% of the principal prepaid.

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FAQs on (Loan against Property)

Who can avail a Mortgage Loan?

Both for Salaried & Self-Employed individuals / people can avail Mortgage Loan, irrespective of the income.

Which factors determine / verify the eligibility of a mortgage loan?

The factors taken into account while determining their legibility of loan against property are listed below:

  1. Income
  2. Age (Min. 21 Yrs.)
  3. Property Valuation
  4. Existing Liabilities (if any)
  5. Current Work Experience
  6. Financial Documents
  7. Number of Dependants 

How much loan can I get?

You can get a (LAP) up-to 80% of the registered value of your property depending on the Bank’s policy and therefore the property type and valuation.

How would the value / worth of my property be determined?

The value of the (property) would be determined through a valuation conducted by the Loan Provider.

What is the difference b/w a Home Loan & Loan against Property?

There is a huge difference b/w a Home Loan and a Loan against property. Home Loan is taken for the purpose of buying a residential property whereas a Loan against Property can be taken for any purpose.

What are the stages involved in availing the loan?

  1. Application
  2. Processing
  3. Documentation
  4. Verification / Valuation
  5. Sanctioning of the Loan
  6. Disbursement

Is there any processing fee charged by the Bank?

Yes, a nominal fees and charges are to be paid to the Bank depending upon their term and conditions.

What are the documents needed / required for applying for a loan against property?

For Salaried:

  1. Application form with 2 photograph
  2. Identity & Address Proof
  3. Latest Salary Slips
  4. Form 16
  5. Bank Statements (Last 6 months)
  6. Processing fee cheque

For Self-Employed:

  1. Application form with photograph
  2. Identity & Address Proof
  3. Proof of business existence & Education Qualifications.
  4. Last 3 yrs. (ITR)
  5. Last 3 yrs. P&L & Balance Sheet
  6. Bank Statements (Last 6 months)
  7. Processing fee cheque

How much time does the Bank take to disburse the loan?

The processing of the loans usually takes 7 to 10 working days once all the documents are submitted. It also depends up-on your profile and documentation.

Does the property have to be insured?

Yes the property has to be insured against fire, earthquakes and other appropriate hazards during the tenor of the loan.

How can I re-pay my loan?

The re-payment of loan is completed through Equated 30 days Installments. It can be paid through (PDC) Post Dated Cheques or (ECS) Electronic Clearance System

Can I pre-pay my loan?

The loan against property can be prepaid along with the prepayment charges. Usually the bank charges 2% of the principal prepaid.