Some of Loan Against Property Doubts You Must Know
Loan against property is an instrument that helps you to use and monetize an existing property. It is commonly referred to as LAP or mortgage loan.
1. Who can get LAP?
All individuals who meet the eligibility criteria of the lender can get the loan sanctioned. While age, income, and residence are important eligibilities, ownership of the property you want to put up as collateral is essential.
So, if you are a co-owner then it means that to get the loan against property easily, all other co-owners of the property will have to become co-borrowers.
2. Is the credit score necessary?
Yes, having the minimum credit score set by the lending institution is necessary. While it may be lower than a home loan or personal loan, if you do not meet the credit score requirement, your loan application can get rejected. Your credit score will also affect the LAP Loan interest rate.
3. Do I have to give my title deeds to the lender?
During the loan tenure, you are required to submit title deeds and other documents to the lender. Make a list and photograph all the documents that you are submitting. At the end of the tenure, you need to ensure that all the documents are returned to you.
4. What loan amount can I get and for how long?
Most lenders offer you up to 70% of the value of the property as the loan amount. But, the final amount will depend directly on your eligibility criteria. You can use the LAP loan eligibility criteria to know the loan amount. Tenures can range up to 30 years.
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