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Loan Against Property

Are you a property owner in need of financial assistance? A loan against property could be the key to accessing the funds you require while leveraging the value of your property. At BankMark, we offer competitive loan against property options designed to meet your diverse financial needs.

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Loan Against Property Interest Rate and Processing Fee...

Banks & HFC
Interest Rate
Processing Fees
Up 0.50%
9.75% Onwards
1.00% Onwards
Upto 1%
Bajaj Finserv
Upto 1.50%
Tata Capital
Upto 1.50%
IIFL Finance
Upto 2%
Kotak Mahindra Bank
Upto 1.75%
DCB Bank
Higher Loan Amounts

With a loan against property, you can borrow a significant amount of money based on the value of your property. This makes it an ideal option for financing large expenses such as business expansion, education costs, medical emergencies, or debt consolidation.

Lower Interest Rates

Since the loan is secured against your property, lenders often offer lower interest rates compared to unsecured loans. This can result in substantial savings over the loan tenure, making it a cost-effective financing solution.

Multipurpose Usage:

Unlike some other forms of financing that have specific usage restrictions, a loan against property provides you with the freedom to use the funds for any purpose you deem fit. Whether it's funding a business venture, renovating your home, or planning a wedding, the choice is yours.

Flexible Repayment Terms

Loan against property offers flexible repayment options, allowing you to choose a tenure that suits your financial situation and repayment capacity. Whether you prefer shorter or longer loan terms, you can tailor the repayment schedule to fit your needs.

Documents Required For Salaried Person

  • KYC documents: PAN card, Aadhaar card, voter ID, Passport, driving license
  • Income Proof: 3 months Salary slips, latest ITR/form-16, 6 months salary account statement
  • Property documents
  • Loan statement of existing loans (If any) 

Documents Required For Self-Employed/Businessman

  • KYC documents: PAN card, Aadhaar card, voter ID, Passport, driving license
  • Income Proof: Income Tax Returns of last 2 years, Form 26AS, 1 year currant account statement 
  • Business registration proof
  • Property documents
  • Loan statement of existing loans (If any) 
Factors that Affects Interest Rate of LAP Loan
Loan-to-Value Ratio (LTV)

The Loan-to-Value Ratio (LTV) compares your loan amount to the property’s market value. A lower LTV (meaning you borrow a smaller portion of the property’s value) translates to lower risk for the lender, potentially leading to a more favorable interest rate.

Credit Score

A strong credit score signifies your financial responsibility and ability to repay the loan. This can incentivize lenders to offer you a competitive interest rate on your LAP.

Property Type and Location

The type and location of your property can influence the interest rate. Easily marketable properties in prime locations might qualify for slightly lower rates compared to less desirable properties.

Loan Amount

In some cases, larger loan amounts might come with a slightly higher interest rate due to the increased risk exposure for the lender.

Borrower's Age

Some lenders may consider your age and employment stability when determining the interest rate. Younger borrowers, especially those nearing retirement, might have a slightly higher interest rate compared to established borrowers with a longer repayment window.

Property Legality

A property with a clear and marketable title (free from disputes or encumbrances) is less risky for the lender. This can potentially lead to a more favorable interest rate.

Frequently Asked Questions

The maximum tenure for a Loan Against Property (LAP) can vary depending on the lender. While there's no single, definitive answer, it typically falls within the range of 15 to 20 years.

You can typically use residential or commercial properties as collateral for a LAP. This can include houses, apartments, land, and commercial spaces.

The LAP processing time can vary depending on the lender and your loan application's complexity. However, streamlined processes like those offered by Cosmo17 can get you approval and disbursal within a few days to a week.

LAPs offer flexibility in how you use the funds. You can utilize them for various purposes like debt consolidation, education expenses, business needs, or even medical emergencies.

The minimum credit score requirement for a LAP can vary depending on the lender. However, it generally falls in the range of 700 to 750 or higher. but you can also get LAP if your credit score is lower, there are some lender who offer LAP at low credit score. Their interest rate may be little higher then usual but you can avail LAP from them. A strong credit score can lead to better interest rates.

Loan Against Property FAQ
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