There are various financial instruments available for individuals to opt to finance their important decisions. While some of these instruments are unsecured which do not require any collateral or security, some are secured against which one is required to provide some security.
Loan Against Property is a form of secured loan, through which one can get funds by keeping their property as collateral. If you too are looking for a loan against property, then this article will help you know all about it.
Why plan for Loan Against Property
A loan against property is the financial instrument that allows you to use the value locked up in a property to meet any expenses you may have. While the loan amount depends on the total value of your property, you are free to use the funds as you see fit. Your property acts as collateral for the loan, but you can continue to use it as before. Some of the benefits of LAP are:
- Loan Against Property amount: Through a loan against property, you can get a loan amount of up to Rs 5 crore with Fullerton India. However, the final loan amount will depend on the price of your property, its location, and your CIBIL score. Through this amount, you can fulfill all your business as well as personal needs.
- Easy interest rates: The interest rate for LAP is lower, starting at 9%. Along with the interest rate, you can also enjoy flexible repayment tenures so that you can plan your finances according to your needs.
- High LTV on market value: whether you have a residential or commercial property, you can get its best value with LAP. Also, while the property is pledged as security, you are free to use it as you want to.
- Convenient and transparent process: In the digital age, the complete application process has become very convenient, speedy, and transparent. The customer care team is also available by phone or email to help the applicants find the best loan options.
- Hassle-free documentation and quick disbursal: The seamless process for LAP ensures that the applicant has a smooth transition from start to finish. With minimum documentation, to be submitted online, you can now get the loan amount in your account in less than 24 hrs.
These are some of the reasons which make a loan against property a common financial instrument among applicants. If you too have a property and want to avail of Loan Against Property then you can apply for the same online, by following the below steps:
Step 1: Browse to the Loan against property page of the lender’s website and click on ‘Apply now’.
Step 2: Choose whether you are a salaried person or self-employed or an SME.
Step 3: You will now be redirected to the application form, which you will be required to fill in along with uploading some documents like:
∙ Proof of Identity
∙ Address Proof
∙ Age proof
∙ Bank Statements for the last 6 months
∙ Last 6 months salary slips (for salaried customers)
∙ Audited financial statements (for self-employed and SME applicants)
∙ Form 16
∙ Income Tax Returns for the last 3 years
∙ Processing fee cheque
∙ Documentation about the property offered as collateral
Step 4: Once you have submitted the form, within a few seconds you will be informed if you are eligible for the loan or not. If yes, a customer care executive will get in touch with you for further steps.
Your property is an asset, which you can use as a home or rent it out to earn monthly income. Little did you know that it can also enable you to get a large sum of loans.