A Loan Against Property is a Secured Loan, where you can mortgage your residential, commercial or special use property to get immediate funds for any purpose, ranging from business expenditure to personal needs. In LAP, the property you own, which has a clear title, is kept with a Bank as a collateral or security, to help you get financial assistance.

• When it comes to a Loan Against Property eligibility, Loan is available for salaried individuals between the age of 25 to 55 who want to fund wedding expenses, child’s education, medical treatment, property purchase, debt consolidation or for any other purpose.
• The Loan facility is also available to self-employed individuals who have their own business or practice. The minimum age is 25 and the maximum is 65, having a minimum 3 years to business continuity.
• Doctors/Professionals are eligible to get a Loan amount up to 75% to 90% of their property market value. They can use the funds for buying medical equipment/ equipment, expanding their business operations, buying a Clinic/office, second home and more.
• The funding is also available for industrial or any other special use properties, for a tenure of up to 20 years.

Most of the banks provide Loan Against Property for a maximum tenure of up to 10-20 years.

Documents Required: Salaried

• KYC Documents- Aadhar Card, PAN Card & Passport along with Latest passport size coloured photograph of all applicants.
• All major Bank Account statements for the past 12 month with salary credits.
• Salary slips for the past three months, form 26SA & form 16 latest 2yrs
• Photocopy of the documents of the property under consideration

Documents Required: Self-Employed

• KYC Documents- Aadhar Card, PAN Card & Passport along with Latest passport size coloured photograph of all applicants.
• All major Bank Account statements for the past 12 month Current & Savings.
• ITR + Computation of income + Balance sheet last 3yrs, form 26SA & form 16 latest 2yrs.
• All Major business registrations like: GST, Udhyam Aadhar etc.
• GSTR 3B last 1yr
• Photocopy of the documents of the property under consideration

Banks allows you to secure a mortgage Loan Against Property by mortgaging residential, commercial Industrial Plot or Built-up property, you can also securitize a special use property (owned or rented). If you own any property like schools, warehouses, industrial or nursing with a capacity of Max 30 beds, you are eligible to get the Loan.

Banks offer a loan amount from 55%- 90% of the property value. The loan amount, which you can avail through Bank’s LAP depends on the overall condition of the property. This is nothing but the Loan to Value or LTV Ratio, which Banks refer to before approving any loan. Also, LTV ratios differ by the type of property. Age and prevailing market value of the property also comes under assessment.