LAP Transfers

Everything You Need To Know About LAP

Overview
You may have a lot on your mind when it comes to sending your children for education abroad or maybe finance your business or even finance your child's wedding. The first thing that would come into the mind of most of us is, 'Where would I get the money from? There are many ways you could arrange for money, and one of those ways is taking a loan. You could take a personal loan for the amount required, or you could take a loan against your property.
What is a loan against property?
A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 60 per cent. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
What purposes can I take a loan against property for?
Loan against Property can be taken for following purposes:
  • Expanding your business
  • Getting your son/daughter married
  • Sending your son/daughter for higher studies abroad
  • Funding your dream vacation
  • Funding medical treatments
What kind of properties can I mortgage for a loan?
You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land. What are the eligibility criteria to get a loan against property?
This criteria will vary from one bank to another. However, from all the host of factors, the common factors that all banks look at are:
  • Your income, savings, debt obligations
  • Cost/value of the property mortgaged
  • Your repayment track record for other loans, credit cards, etc.
What are the normal interest rates and tenure for repayment offered for a loan against property?
Interest rates on loan against property range from 12 per cent to 15.75 per cent, and the loan tenure can be up to 15 years.
Due to a high disparity between interest rates for existing and new customers, several home loan customers are unhappy with the high rates they are being forced to pay. But when banks start discriminating between you and its new customers, it’s time for you to transfer your home loan to a lower interest rate and save money. Balance Trasnsfer is the solution.

How is a loan against property different from a personal loan?

Loan Against Property Personal Loan
The individual takes the loan by mortgaging the house property An individual can take a personal loan for personal use without any security or guarantor
One of the cheapest retail loans after home loans; usually about 12%-16% Higher interest rates compared to LAP; usually issued at interest rates in the range of 16%-21%
Since the rate of interest is lower, frequently LAP Equated Monthly Installments (EMI) turn out cheaper Equated Monthly Installments (EMI) turn out cheaper Since rate of interest is high, Equated Monthly Installments (EMI) for personal loans are high
Maximum loan eligibility is determined primarily by the value of the property and income Maximum loan eligibility is determined primarily by an individual's income
Maximum loan tenure for LAP is up to 15 years (180 months) Maximum loan tenure for personal loan is up to 5 years (60 months)
Secured loan Unsecured loan

LAP Apply Now

Document Checklist

Most banks follow the same general rules in terms of document requirement. There may be a few changes in certain cases, in which case, our loan officers will guide you personally to complete the documentation process. Salaried individuals.

  • 1. Form 16 of last 2 years or Income Tax Returns.
  • 2. Salary slips of last 3 months.
  • 3. Last 6 months bank statement reflecting salary credits.
  • 4. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 5. Cheque of Processing Fee.

  • 1. Proof of Business - Shop and Establishment Certificate/ Vat Registration Certificate/ Service Tax Certificate.
  • 2. Last 3 years IT tax returns with profit and loss account and balance sheet duly audited by CA.
  • 3. Existing Loans’ Sanction letters accompanied with repayment track.
  • 4. Business profile on the letterhead of the company.
  • 5. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 6. Cheque of Processing Fee.

  • 1. Age proof of all the partners in the form of PAN Card, Passport or Aadar Card.
  • 2. PAN Card of the company.
  • 3. Residence proof of all the partners – Utility Bills/ Passport/Bank statement/ Registered rent agreement.
  • 4. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
  • 5. Latest 3 years Income Tax returns with profit and loss and balance sheet duly audited by CA.
  • 6. Latest 12 months bank statement of the Company and of the Partners’ Savings Bank Account.
  • 7. Existing Loans' Sanction letters accompanied with repayment track.
  • 8. Business profile on the letterhead of the company.
  • 9. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 10. Cheque of Processing Fee.

  • 1. Application form duly filled with photographs of directors.
  • 2. Age Proof of Directors - PAN Card, Aadhar Card, passport.
  • 3. Residence Proof of Directors - Utility Bills/ Passport/Bank statement/ Registered rent agreement.
  • 4. PAN Card of Company.
  • 5. Education Qualification - A professional qualification certificate in case of Doctors/CA/Architects.
  • 6. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
  • 7. MOA, AOA, List Of Directors, Share Holding Pattern of the Company.
  • 8. Last 3 years IT returns with Profit and Loss account and balance sheet duly audited by CA.
  • 9. Latest 12 months bank statement of Company of all current accounts and the same for Director’s Savings Bank Account.
  • 10. Existing Loans’ sanction letter with repayment track of company and Individual Directors.
  • 11. Business Profile on the Letter Head of the Company.
  • 12. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 13. Cheque of Processing Fee.

  • 1. Occupancy Certificate.
  • 2. Approved Plan of building.
  • 3. Share certificate copy.
  • 4. Past 13 years Chain of deeds.
  • 5. Nil Encumbrance Certificate - EC (if applicable).
  • 6. Current Sale agreement/ Draft Agreement to sell.

Eligibility Criteria

Eligibility Criteria

  • Your eligibility for Home Loan is determined by the following factors:-
  • Income/ Other Income
    Age
    Qualification
    Property value
    No of dependents
    Bank Balance
    Assets/Liabilities