Finwizz Retail Finance Pvt. Ltd.

View Locations EMI calculator   +1800 258 8333

Loan against Property (LAP) is a very unique product that couples the feature of a personal loan and a secured loan. This loan product helps in unlocking the value of the most precious asset: your Property. The end use of the loan is not monitored when compared to any other secured loan which generally comes with a specific purpose. In that sense, LAP is an any purpose loan, but at the same time secured by the collateral of property.

This is one of the best tools for those looking at debt consolidation. Several businesses have obtained high-cost funds like unsecured business loans and leveraged themselves to a greater extent, thereby putting pressure on higher interest costs and lower profit margins. LAP perfectly fits for such businesses to reduce their borrowing cost and consolidate debt at a lower cost. The other advantage is the tenor for a LAP loan is generally in the range of 7 to 15 years, thereby giving the borrower enough time to plan business expansion among other things. Moreover, with the appreciation of the property, future requirements also can be taken care of. This allows for best use of the property that is owned and at the same time will enable raising of funds required for various purposes. Also, a Loan Against Property comes with a low-interest rate compared to that of a personal loan or home loan.

Documents Required:

Photograph

Identity proof

Address proof

Income proof

Bank Statements

Continuity Proof

Qualification proof (applicable only for Self Employed Professionals)

Income proof of salaried employees are pay slips and bank statements

Specific documents required for self-employed applicants:

Income tax returns along with all supporting’s including audit reports for the past 3 years

Last 12 months’ bank statements of main business banking.

In addition, there are some other common documents related to the property that are also required to be produced.

Original title deeds of the property that is being offered as collateral to loan

Property tax receipt

NOC from society to create a mortgage of the property.

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

LAP Loan can be availed by Salaried Professionals, self employed individuals and also those who have a stable source of income. There is a minimum amount of salary that has to be earned by those who are employed and also a minimum limit of annual income earned by the professionals and other self-employed individuals.
Home loan is basically to acquire a home. Here the loan is avail by the borrower only with the purpose of acquiring a home. Loan against property is given to those who owns a property which can be mortgaged. Tax benefits are being given to home loan borrowers, whereas in LAP, this benefit is not available.
LAP loans are priced higher when compared to a home loan.
Yes, LAP is a perfect product to consolidate all your loans which are running at higher costs. Moreover, interest rate charged on LAP is relatively low when compared to unsecured loans.
Loan amount depends on the valuation of your property typically the loan amount values of the property ratio varies between 50-70%. However, it is at the discretion of the FRF Sanction the loan amount, depending on the repayment capacity of the borrower.
Yes, you can get a LAP on your leased out property. In fact, if the lessee is a known corporate, then this is a perfect product to unlock value of your property. You can raise loan on the property and the monthly EMI shall be taken care of by the rental income, thereby not putting pressure on your pockets. Such type of loan is also called Lease Rental Discounting (LRD).
No, you cannot get tax relief under LAP Loan. However, you can post the entire interest during the financial year to your profit & loss account as expenses.
Yes, the EMI amount or the tenure of the loan could get changed if one has availed a floating rate of interest.
No, it is not mandatory to buy property insurance when you are availing a LAP loan. But it is in the interest of the borrower to insure property as it eliminates risk of loss of property.
Yes, you can sell the property even when the loan is active. However, you need to inform FRF and get a consent. The title deeds shall be released to the borrower once all the dues to FRF are fully paid off.
Yes, Loan against Industrial Shed can be provided depending upon the policy norms of FRF.

Get a Quote



APPLY NOW

Copyright © 2022 | Saral Loan | Designed & Developed by The Grey Metaphor

Top