4 Steps to Check Loan Against Property Process
Loan against property is a secured loan provided by various non-banking financial institutions to both salaried as well as self-employed professionals. Unlike a personal loan, it is availed by pledging a property with the lender. It means you do not have to sell your land to acquire the funds. The lender will keep it until the entire loan amount is disbursed.
A loan against property comes in handy during multiple financial emergencies, such as starting a business, marriage expenses, paying substantial medical bills, and more. If you are looking to apply for a LAP, follow these steps for a smooth and hassle-free process.
1. Decide the loan amount – After choosing the suitable lender, find out the maximum loan amount you can secure. LAP usually provides a loan amount of up to 70% of the property’s value as a loan. It is also based on parameters, such as your repayment capacity, your profession, type of business, etc.
2. Check the eligibility criteria – The eligibility criteria for a LAP differs from lender to lender. Hence, you must satisfy the eligibility criteria provided by the shortlisted lender for quick approval and disbursal of the loan amount.
3. Apply for the loan – Next, fill out a LAP application with your personal and professional information. Ensure all the details mentioned by you are accurate as the lender will verify them.
4. Further, you also need to submit several documents along with the loan applications. Documents required for the loan against property include – identity and address proof, bank statements, IT returns, proof of ownership, etc.
In the end, the lender will verify the information provided by you in the application. If everything is found satisfactory, they will approve the loan request, and the concerned amount will be disbursed to your account within a couple of hours.
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