The Importance of Availing a Loan against Property

Before buying a residential property in Kolkata, you must have been thinking about taking a loan against your property. You must have planned several things for your new residential property. Make sure, you are aware of the necessary things related to loans. Did you know there are several ways for an individual to arrange for fund in order to fulfil the dream of buying a home? You either can apply for a personal loan or can directly go for a loan against a possession by putting the property as a security.

Know About a Loan against Property

The best thing about a loan against a particular property is that you get the loan at a lower interest rate, which fulfils the financial need of the borrower over the high-interest rate loan.

Always remember that the loan eligibility is entirely based on the property value and the borrower’s source of income. Now, this loan will come under the group of secured loans.

In LAP or Loan Against Property, lenders usually offer loans up to 80% of the individual property value.

Documents Required for an LAP or Loan against Property

Most of the financial institutions and banks require certain important documents. The following are the requirement for the salaried customers, self-employed professionals and self-employed businessmen.

For Salaried Customers

  • Identity proof
  • Residential proof
  • Application forms with passport/stamp size photographs
  • Academic credentials and c
  • Latest salary-slips
  • Last six months’bank statements
  • A blank cheque
  • Form 16

For Self-employed Professionals & Businessmen

  • Identity proof
  • Residential proof
  • Application forms with passport/stamp size photographs
  • Academic credentials and certificates
  • Last six months’bank statements
  • Last three years’profit/loss & balance sheet
  • Last three years’Income Tax Returns (business and self)
  • Processing fee cheque
  • Last three years’balance & profit/loss sheet
  • Proof of business existence

Key Benefits
It is true that among the huge list of loan options as provided by banks and financial institutions, a relatively popular option is none other than the ‘Loan against a property’. This clicks with the borrowers well, as; it allows an individual to borrow a comparatively huge sum of fund for any kind of requirement. This particular loan option has easy documentation, flexible repayment options and quick approvals.

Loan against property is popular as it has some noticeable benefits. Higher loan amounts are usually available for a longer tenure in comparison to the conventional loans. Even, this is available at discounted interest rates.

Leave a Reply

Your email address will not be published.