Assess your loan against property via auto loan calculator

Anyone can be granted a loan against property, provided he or is the legal owner and the concerned property is a legal or licensed one. A loan against property (LAP) is as the name suggests, a loan given in lieu of a property or rather given against the mortgage of a specific property. The loan granted, is given as a certain percentage of the property’s market value, which is generally somewhere around 40 to 60%.

Under ‘loan against property’ get a secured loan. Loan against property is by default a category of secured loan where the lender takes a guarantee from the borrower by taking the latter’s property as a security deposit. On failing to repay the loan the borrower gets full privilege to cease the deposited on permanent basis. You can always understand the nitty gritty of your loan against property via the online auto loan calculator.

There are different purposes against which you can get ‘loan against property’. Following are the probable purposes against which you can avail a loan against property.

* Expanding the scope of your business.
* Getting your children married off.
* Higher studies of your children to some abroad destination.
* Financing your dream vacation which can be a global trip.
* Arranging money for medical treatments.

Kind of properties you can keep mortgage for a loan
Normally, you can avail a loan against only self-occupied or rented residential property, which can be a house or even a piece of land. Get a clearer view of the valuation on the online auto loan calculator.

Eligibility criteria to get a loan against property

The eligible criteria vary from one bank to another. However, there are certain factors which the all banks keep as common, like the following:

* Your income, savings, debt obligations
* Cost/value of the property mortgaged
* Your repayment track record for other loans, credit cards, etc.

Rate of interest and tenure allotted for repayment offered for a loan against property

The rates of interest rates on loan against property range from 12 per cent to 15.75 per cent, and the loan tenure can be up to 15 years.

Pre-requisite documents for applying for a loan against property

Apart from a few exceptions, most of the banks and financial institutions typically require the following documents:

For salaried people:

* Application form with photograph
* Identity and Residence Proof
* Latest Salary-slips
* Last 6 months’ bank statements
* Processing fee cheque

For self-employed people :

* Application form with photograph
* Identity and Residence Proof
* Education Qualifications Certificate and Proof of business existence
* Last 3 years Income Tax returns (self and business)
* Last 3 years Profit /Loss and Balance Sheet
* Last 6 months’ bank statements
* Processing fee cheque

For businessmen:

* Application form with photograph
* Identity and Residence Proof
* Education Qualifications Certificate and Proof of business existence
* Business profile
* Last 3 years Profit /Loss and Balance Sheet
* Last 3 years Income Tax returns (self and business)
* Last 6 months’ bank statements (self and business)
* Processing fee cheque