1. The loan received as loan against property
can be used for
a. business expansion.
b. To start a new business.
c. To repay the existing loans running at
high rate.
d. To consolidate multiple EMI’s into
one single loan.
e. To convert the cash credit limit into
EMI base loan.
f. To renovate house or else.
g. For any other personal use.
h. Funding existing business, Debt Consolidation,
Emergencies, Education etc.
2. The loan amounts in loan against property
varies from bank to bank. one can get loan from Minimm Rs.500,000
to Maximum Rs.1,00,000,000.
3. The maximum loan amount can go up to
75% of residential property and 60% of commercial property.
4. Collateral offered should be freehold
(few banks lend against leasehold or power of attorney basis
also). The property in case of loan against property can also
be offered of the individuals which can be of directors /
partners.
5. The loan against property carries a feature
of quick disbursal, within 10 days of the submission of the
application form and required documents.
| What is LAP? What are
its advantages? |
|
| LAP is Loan Against Property.
It is also known as mortgage loan given against
the security of your existing property. The main
advantage if LAP is lower rate of interest than
other consumer/personal loans. The
availability of multiple options to make use of
the real estate assets has made this loan very
popular with entrepreneurs and investors.
|
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| What is the usual repayment
period? And what is the interest? |
|
|
While the repayment period
varies from 5-15 years, the rate of interest varies
from 13 – 16 percent depending on the type
of institution and repayment period. Both fixed
and floating rate options are available. It is
immaterial whether the immovable property is self
occupied or leased out.
For the borrowers it's really a blessing as this
loan does not take time and effort like other
loans and in terms of monetary benefit as well
it makes sense. So, go ahead unleash the potential
of your asset, use the money in more productive
way or settle loans that carries high interest
rate.
Loan Eligibiliy means the
maximum loan one can get from a bank. Presently
banks and financial institutions calculate loan
eligibility by different methods of which few
are as below
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1. ITR/ Income/ Salary
or form 16 Basis
|
This method is called
income method, One can expect a Loan equal To EMI
one half Of Monthly Income. Monthly
Income (MI) For Businessman MI= 1/12*(Net Profit
As Per ITR + Interest To Partners/ Directors +
Interest On Unsecured Loans + Depreciation)
Monthly Income For Salary
100% Of Fix Monthly Component + 50% Of Variable
Components Such As Bonus, Commission Etc. Which
Is Not Fixed By Its Nature
|
| 2. EMI
Equiliser or SIP or Track basis also called Surrogate |
The eligibility is calculated on the Basis Of Running
EMI’s, If EMI Paid Are >= 9 Or 50% Of The
Total Tenure. Any Businessman
(Salaried in few cases) Can Take A Loan Equal
To Total Of All EMI *1500, If EMI Paid Are >=
9 Or 50% Of The Total Tenure in case of property
loans such as home loan or personal loan.
Applicable for businessman.
Few banks give for salaried also.
|
| 3. Non
Income Basis |
The bankers also lends on the basis of banking of
last 12 months. The eligibility is calculated equal
to one half of the average balance maintained in
last one year. The transaction in bank account should
be six to seven a month excluding interest or any
charges debited or credited by the bank.
Applicable for businessman.
few banks give for salaried also
|
| 9. LIP
Liquid income proof |
Under LIP programme an officer visits the applicant
business place, see actual business activities.
The bank representative makes an independent P&L
account. And thus a figure is arrived that how much
that person can repay.
Applicable for businessman.
Income basis and Other methods (Differences)
One can go for any amount subject to product
limits if applying on income basis.
Non Income Basis Personal Loan can be applied
to maximum of Rs. 50,00,000.00 lacs.
To know more about loan eligibility (loan amount)
or to know your loan eligibility for Home Loan,
Personal Loan, Property Loan or Business Loan
by seven different methods from five different
banks you can mail us at or contact by telephone.
|
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| You are Eligible for
a Loan Against Property if you fulfill following
Criteria : |
|
1. Age a.
You must be at least 23 years of age when the
loan is sanctioned for salaried employees/Professional
& Self Employed Persons/Businessman.
b. The repayment should be complete
before attaining the age of 65.
c. Other cases can be taken up
as special case and subject to approval of higher
authorities of the bank.
d. The loan applications in which
point no. i and ii are not satisafied a guarantor
is taken as additional co applicant satisfying
the criteria.
|
| 2. Income
a. Net Income
of the concern should be greater than Rs. 100,000
P.A for salaried employees/Professional &
Self Employed Persons/Businessman.
b. Maximum of two persons income
of the partners/directors holding a minimum of
25% stake each can be clubbed to the income of
the concern.
c. It can be Increased/ Enhanced
By Clubbing Income Of Maximum Three Persons Which
Can Be
Family Members In Tree/Chain Or Co Partner In
Business Or Co Partner In Property
|
3 . Profile a.
You must be the owner of a self-occupied
property.
b. Business Continuity should
be more than 5 years.
If you are a salaried individual, you should have
a continuous minimum employment for 3 years or
more. .
c. The maximum period for which
loan against property is given by any bank is
15 years.
d. You can include your spouse/parents/children
as co-applicant to maximum of three applicants.
e. Permanent salaried employees/Professional
& Self Employed Persons/Businessman, having
regular income to liquidate loan.
f. Either Residence or Office
should be owned.
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|
Sole Proprietor Businessman |
1.
Proof of Incorporation/Company Association (any
one of the following)
Proprietorship Letter / Bank Verification
Letter 2. ID Proof
(any one of the following)
Passport / Driving License / PAN Card / Election
ID Card
3. Signature Proof (any
one of the following)
Passport / Driving License / PAN Card / Bank’s
Verification
4. Residence Address Proof
(any one of the following)
Telephone Bill or Water Bill or Electricity Bill
/ Lease Deed
Rent Agreement if rented / Passport
5. Residence/ Office Ownership
Proof (any one of the following)
Lease Deed/ Registry or Other Ownership Proof
/ Electricity/ water Bill / Property Tax receipt
6. Office Address Proof
(any one of the following)
Telephone Bill / Electricity Bill / Water Bill
/ Lease Deed / Rent Agreement if rented / Any
Government Certificate Sales Tax or Excise License
or Service Tax Registration Certificate
7. Income Proof (all are
mandatory)
Last Two Year Income Tax Return, Ward/ Circle
and Ten Digit Number of Receipt should be clear
Profit/Loss Account & Balance Sheet or Auditor’s
report wherever applicable.
Bank Statement of Last 12 months of all Current
A/c showing in the Balance Sheet
Bank Statement for Last 6 Month of Individual/
savings
8. Loan Schedule or Repayment
Track (all are mandatory)
Loan Schedule / Track of All Loans Showing EMI
/ECS in Bank Statement. or in Balance Sheet
9. Continuity Proof 5 years
for Business or 2 years in Job (all are mandatory)
Sales Tax or Excise License
Service Tax Registration Certificate or PF/ ESI
Certificate
Income Tax Return
Any Govt Certificate
10. Others
Company Profile or Letter Head
11. Property Documents
Property Documents of Proposed Property
to be Purchased or to be pledged with Last 13
Years Chain
12. Most important documents (MID)
Application Form to be filled and signed
Bank Statement
Signature Verification. Request from the bank
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|
| Self employed Businessman
(Partnership & Private/Public limited) |
|
1. Proof of Incorporation/Company
Association (any one of the following)
Partnership Deed / Bank Verification Letter/ Memorandum
& Articles of Association / Certificate of Incorporation
2. ID Proof (any one of the following)
Passport / Driving License
PAN Card / Election ID Card
3. Signature Proof (any one of the following)
Passport / Driving License / PAN Card / Bank’s
Verification
4. Residence Address Proof (any one of the
following)
Telephone Bill or Water Bill or Electricity Bill / Lease
Deed / Rent Agreement if rented / Passport
5. Residence/ Office Ownership Proof (any one
of the following)
Lease Deed/ Registry or Other Ownership Proof
Electricity/ water Bill
Property Tax receipt
6. Office Address Proof (any one of the following)
Telephone Bill / Electricity Bill / Water Bill / Lease
Deed / Rent Agreement if rented / Any Government Certificate
Sales Tax or Excise License or Service Tax Registration
Certificate
7. Income Proof (all are mandatory)
Last Two Year Income Tax Return, Ward/ Circle and Ten
Digit Number of Receipt should be clear
Profit/Loss Account & Balance Sheet or Auditor’s
report wherever applicable.
Bank Statement of Last 12 months of all Current A/c
showing in the Balance Sheet
Bank Statement for Last 6 Month of Individual/ savings
8. Loan Schedule or Repayment Track (all are
mandatory)
Loan Schedule/ Track of All Loans Showing EMI/ECS in
Bank Statement. or in Balance Sheet
9. Continuity Proof 5 years for Business/ or
2 years in Job (all are mandatory)
Sales Tax or Excise License
Service Tax Registration Certificate or PF/ ESI Certificate
Income Tax Return
Any Government Certificate
10. Others
Company Profile or Letter Head
11. Most important documents (MID)
Application Form to be filled and signed
Bank Statement
Signature Verification. Request from the bank
12. Property Documents
Property Documents of Proposed Property to
be Purchased or to be pledged with Last 13 Years Chain
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|
1. Proof of Incorporation/Company Association (any one
of the following)
Appointment Letter / Salary Certificate 2.
ID Proof (any one of the following)
Passport / Driving License / PAN Card / Election ID
Card
3. Signature Proof (any one of
the following)
Passport / Driving License / PAN Card / Bank’s
Verification
4. Residence Address Proof (any
one of the following)
Telephone Bill or Water Bill or Electricity
Bill / Lease Deed
Rent Agreement if rented / Passport
5.Residence/ Office Ownership
Proof (any one of the following)
Lease Deed/ Registry or Other Ownership Proof / Electricity/
water Bill / Property Tax receipt
6. Office Address Proof (any
one of the following)
Appointment Letter / Salary Certificate
7. Income Proof (all are mandatory)
Last Two Year Income Tax Return, Ward/ Circle and Ten
Digit Number of Receipt should be clear
Profit/Loss Account & Balance Sheet or Auditor’s
report wherever applicable.
Bank Statement of Last 6 Months of Individual/ savings
Form 16 of Last 2 years
8. Loan Schedule or Repayment
Track (all are mandatory)
Loan Schedule/ Track of All Loans Showing EMI/ECS in
Bank statement
9. Continuity Proof 5 years for
Business/ or 2 years in Job (all are mandatory)
Appointment Letter
Form 16 of last 2 Years
10. Others
Company Profile or Letter Head
11. Most important documents
(MID)
Application Form to be filled and signed
Bank Statement
Signature Verification. Request from the bank
12. Property Documents
Property Documents of Proposed Property to
be Purchased or to be pledged with Last 13 Years Chain
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