Home Loan

LAP is a secured loan where borrowers pledge their residential, commercial, or industrial property as collateral to secure funds. The loan amount depends on the property’s market value and the borrower’s eligibility.

The funds from LAP can be used for various purposes, including:

• Business expansion
• Debt consolidation
• Higher education
• Medical emergencies
• Wedding expenses
• Home renovation or construction

Eligibility criteria typically include:

• Age: 21 to 65 years
• Employment: Salaried, self-employed, or business owners
• Property Ownership: The property must be owned by the applicant or co-applicant
• Income: A stable income source to ensure repayment capacity
• Credit Score: A good credit score (750 or above) is preferred

Lenders accept the following types of properties as collateral:

• Residential properties (self-occupied or rented)
• Commercial properties (offices, shops, etc.)
• Industrial properties
• Vacant land (depending on lender policies)

The loan amount typically ranges between 60%-75% of the property’s current market value, depending on the lender and the borrower’s financial profile.

Interest rates for LAP are usually lower than personal loans and vary based on:

• Loan tenure
• Borrower’s creditworthiness
• Property type and location
• Lender’s policies

Rates typically range between 8% to 15% per annum.

The repayment tenure for LAP is flexible and usually ranges from 5 to 15 years, depending on the lender and borrower’s preferences.

Commonly required documents include:

• Identity Proof: Aadhaar, PAN, Passport, or Voter ID
• Address Proof: Utility bills, rental agreement, or Aadhaar
• Income Proof: Salary slips, IT returns, or business financials
• Property Documents: Title deed, sale agreement, and property tax receipts
• Bank Statements: Last 6 months’ statements

Yes, many lenders offer online application facilities. The process typically involves:

• Filling out an application form on the lender’s website
• Uploading required documents
• Scheduling property evaluation and verification
• Receiving approval and disbursal upon successful verification

Failure to repay the loan can lead to:

• Accumulation of penalties
• A drop in your credit score
• Lender initiating legal action, including repossession of the pledged property

Yes, Non-Resident Indians (NRIs) can apply for LAP. They need to provide additional documents like their passport, visa, and overseas income proof.

• Collateral: LAP requires property as collateral, while personal loans are unsecured.
• Interest Rates: LAP generally has lower interest rates.
• Loan Amount: LAP allows higher borrowing limits.
• Tenure: LAP offers longer repayment tenures.

Tax benefits may apply if the loan amount is used for:

• Business purposes: Deduction on interest paid under business expenses.
• Home renovation or construction: Deductions under Sections 24(b) or 80C (specific conditions apply).

• Floating Rate Loans: Usually no prepayment charges.
• Fixed Rate Loans: Prepayment charges (2%-3%) may apply, depending on lender policies.

LAP processing typically takes 7-15 working days, depending on factors like document submission, property evaluation, and lender policies.