Loan against property or LAP is a mortgage or secured loan availed after pledging a property as collateral. The interest rate starts from 7.25% p.a to 8.00% p.a. You can avail of LAP up to 70% of property value for maximum of 15 years.
| Occupation | Salaried employees, self-employed professionals, self-employed non professionals, and business owners |
| Age | Minimum 21 years at loan application and maximum 65 years at loan maturity |
| Monthly income | 20,000 |
| Job/business continuity | 2 years continuous job or 3 years continuity in business |
| ITR | Last 2 years IT returns |
| Credit score | 700 & above |
You can consider applying for a loan against Property for a marriage in your family, to bear educational expenses, for vacation abroad, debt consolidation, home renovation, or any other purposes.
Generally, the minimum loan amount is around 50,000,and the maximum amount can go up to 50 Lakhs depending on your eligibility. The banks like to have a personal discussion with borrowers before approving higher Home Loan limits.
The banks do not have any collateral to fall back on in case of default. The only recourse available to the banks is to file a civil suit in the court of law.
