Borrowers will come across different situations when they will need funds. This may be for their children’s marriage, investment in a business or higher education. At this time, their property can act as a great asset since it serves the purpose of collateral and helps them get a loan against it.
As a secured loan, loan against property interest rates are lower, and it also increases the chance of faster approval.
Features of a loan against property
Following are the features and advantages of a loan against property:
- Easy documentation
- Flexibility of loan repaying option
- Low interest on LAP
- Ability to pre-close
- Attractive loan against property interest rates
How to apply for a loan against property?
Following are the steps to apply for a loan against property online:
Step 1: Visit the official website of a financial institution
Step 2: Determine the loan amount
Step 3: Check out the eligibility criteria
Step 4: Fill out the application form
Step 5: Click on ‘Confirm’
Step 6: Submit the essential documents
Step 7: Wait for the verification of the documents
Step 8: After verification, the borrower will get the sanction letter from the lender
Step 9: The borrower will finally receive funds into their account
Documents required for a loan against property
Following are the documents required for loan against property:
- Identity proof
- Address proof
- Current salary slips (for salaried persons only)
- Bank account for the previous three months
- Documents of the mortgaged property
- Income Tax Returns
Read Also: 7 Best Ways to Get the Best LAP or Loan Against Property Rate of Interest
Loan Against Collateral 