Loan Against Residential Property

How to Avail Loan Against Residential Property?

October 21, 2022 • 186 views

Oftentimes, to receive something, you need to let go of something but that’s not the case with Loan against property (LAP). While you offer the property as a collateral for the loan you continue to be the owner as well as use the property while your loan is getting serviced. So with LAP you can avail of a Loan Against Residential your Property and also fulfil your financial requirements without letting go of the ownership or possession of the property. 
So, if you require financial assistance and want to know more about Loan Against Property, plot mortgage loans, the various benefits of LAP, and how to avail of this loan, you’ve come to the right place!

What is Loan Against Property?

A Loan Against Property/loan against residential plots, or mortgage loan is a financial instrument that enables you to utilise the value of your property by putting it up as collateral to receive funds from a lending institution. It is a secured loan that provides substantial funding or loan against residential property, which can be repaid over a flexible tenure. Some non-banking financial companies (NBFCs) like Poonawalla Fincorp offer LAP with a repayment tenure of up to 15 years.

Let us check out the various features and benefits of a Loan Against Residential Property or plot.

Loan Against Property – Features & Benefits

  • Higher LTV on market value – You can receive a higher loan-to-value ratio (LTV) on the market value of your property, which means a higher amount to fund your needs.
  • Quick and easy loan processing – Unlike most lenders, applying for a Loan Against Property with Poonawalla Fincorp is not just quick but hassle-free as well. If you meet the basic eligibility criteria and provide the correct documents, your loan processing experience will be very smooth.
  • Minimum documentation – Gone are the days of long queues and endless paperwork. A simple online application for Loan Against Property involves only basic documents, saving you precious time and energy.
  • Competitive interest rates – Always go for lenders who offer competitive interest rates and charges on your Loan Against Property. This will further ensure that you have budget friendly EMIs to pay against your loan without affecting your overall financial goals.
  • Transparent processing – A transparent loan processing experience builds a sense of trust and reassurance. Every charge during the process is swiftly communicated to the customer during each stage – from application to disbursement, ensuring there are no hidden fees involved.
  • Longer tenure – Loan repayment becomes easier when you are afforded a sense of flexibility on its tenure. You can receive a maximum repayment tenure of up to 15 years to pay back your Loan Against Residential Property without any hassle.
  • Foreclosure charges – You can now foreclose your loan well in advance without incurring any high charges. Lenders levy a nominal foreclosure charge on the outstanding principal amount of your loan.
  • Doorstep service – You can avail of a Loan Against Residential Property at your convenience. Many lenders offer doorstep services to make it easier for you to apply for a loan.
  • Loan Amount – You can receive a high-value amount ranging from Rs. 25 Lakh to Rs. 10 Crore as your Loan Against Property.

How Do I Get a Loan Against Residential Property?

To avail of a Loan Against Residential Property, you need to go through the following steps. Let’s get started!

First, make sure that you fall under any of these three categories, which are:

  • Salaried individuals working with LLP / private limited/public limited companies
  • Proprietor / Partner / Director; Self-employed professionals like Chartered Accountants, Company Secretaries, and Doctors
  • Partnership or private limited companies engaged in manufacturing, servicing, or trading

Eligibility Criteria for Loan Against Property

The basic eligibility criteria to avail of a Loan Against Property include:

  • Age – The minimum age for salaried and self-employed individuals as well as a proprietor / key partner / key director is 22 years at the time of loan application. Salaried individuals should be a maximum of 60 years while self-employed individuals and proprietors should be a maximum of 75 years of age at loan maturity.
  • Work experience/business vintage – Salaried individuals should have 3 years of total experience and 1 year with their current employer. Self-employed professionals should be in the same business/profession for the last 3 years. Companies should have at least 3 years of business vintage.
  • Income – The net monthly take-home salary for salaried individuals should be at least Rs. 25,000. For self-employed individuals, their gross annual income should be a minimum of Rs. 3 Lakh. For companies, their annual turnover should be a minimum of Rs. 10 Lakh.
  • Citizenship – All key stakeholders should have Indian citizenship.

Also read: Advantages of Loan Against Property

Documents Required for a Loan Against Property

  • Identity documents – Salaried and self-employed professionals should provide their respective PAN Card and Aadhaar Card. The firm / Company should furnish their company PAN Card, GST Registration Certificate (if applicable), and other Applicable Registration documents along with KYC of Partners / Directors’ PAN Card and Aadhaar Card.
  • Income documents – Salaried individuals should provide salary slips from the past 3 months. Self-employed individuals should provide income tax returns along with computation and profit/loss statements & balance sheets for the latest 2 years. Firms/companies should furnish all documents like self-employed individuals with an additional document of their GST returns.
  • Address proof – All stakeholders are required to provide the electricity bill for owned premises, the rent agreement for the rented premises, and passport details.
  • Financial documents – Salaried individuals must provide salary credit bank account statements from the latest 12 months. Self-employed professionals and firms should provide operative bank account statements from the latest 12 months.
  • Property paperwork – This should be provided if the paperwork is already finalised along with legal & technical clearance of the property.

Steps to Apply for a Loan Against Property with Poonawalla Fincorp

  • Step 1: Click on the ‘Apply Now’ button on Poonawalla Fincorp’s website
  • Step 2: Enter basic KYC details and upload all the required documents
  • Step 3: Await the assessment and verification of your loan application
  • Step 4: Receive confirmation
  • Step 5: Approve the loan offer and authorise its disbursal

Conclusion

A Loan Against Property can prove to be the most worthwhile financial decision of your life, allowing you to fulfil your immediate or long-term requirements while paying it off at a relaxed pace.

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