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Loan Against Property in Gurgaon
Loan Against Property (LAP) is a type of secured loan where borrowers use their residential, commercial, or industrial property as collateral to obtain funds from a lender. Unlike a personal loan, which is unsecured, a LAP is backed by a tangible asset, which allows lenders to offer lower interest rates and higher loan amounts.
Key Features of LAP
- Collateral: The loan is secured against a property, which could be a house, flat, or commercial building. The property remains with the borrower, but the lender holds a lien over it until the loan is repaid.
- Loan Amount: The loan amount is usually a percentage of the property’s market value, typically ranging from 50% to 70%. The exact amount depends on the lender’s policies and the borrower’s profile.
- Interest Rates: LAP interest rates are generally lower than those of unsecured loans, such as personal loans, because the loan is secured by property.
- Tenure: LAPs generally come with longer repayment tenures, often ranging from 5 to 15 years, which makes the EMI more manageable.
- Usage: The funds obtained through a LAP can be used for various purposes, such as business expansion, education, medical expenses, or debt consolidation.
- Eligibility: Lenders evaluate factors such as the borrower’s income, credit history, and the property’s value and legal standing before approving a LAP.
- Foreclosure Risk: If the borrower fails to repay the loan, the lender has the right to auction the property to recover the outstanding amount.
Advantages of LAP
- Lower Interest Rates: Compared to personal loans, LAPs offer lower interest rates due to the collateral provided.
- Higher Loan Amounts: Because the loan is secured, borrowers can typically get a larger loan amount compared to unsecured loans.
- Flexible Repayment Options: Longer tenure options make repayment more flexible.
Disadvantages of LAP
- Risk of Property Loss: If the borrower defaults on the loan, they risk losing the property used as collateral.
- Valuation of Property: The loan amount is dependent on the lender’s assessment of the property’s value, which might be lower than the borrower expects.
LAP is a useful financial tool for those who need significant funds and own property, but it requires careful consideration due to the risk of losing the property if repayments are not met.
Rate of Interest on LAP
The average interest rate for a Loan Against Property (LAP) in India typically ranges between 9% to 14% per annum. The exact rate varies based on several factors, including the lender, the borrower’s credit profile, the property’s value, and the loan tenure.
Factors Influencing LAP Interest Rates
- Type of Property: The interest rate may differ based on whether the property is residential, commercial, or industrial.
- Loan Tenure: Longer loan tenures might attract slightly higher interest rates.
- Credit Score: A higher credit score often results in a lower interest rate.
- Loan Amount: The loan amount in relation to the property’s value can also impact the interest rate offered.
Typical Interest Rate Ranges
- Public Sector Banks: 9% to 12% per annum
- Private Sector Banks: 9.5% to 13% per annum
- Non-Banking Financial Companies (NBFCs): 10% to 14% per annum
Several banks offer Loan Against Property (LAP) in Gurgaon (Gurugram). Here are some prominent options:
Public Sector Banks:
- State Bank of India (SBI): Offers LAP in Gurgaon with competitive interest rates, typically ranging between 9% to 12%. SBI is known for its extensive branch network and customer-friendly services.
- Punjab National Bank (PNB): PNB provides Loan Against Property with flexible repayment options and attractive interest rates. They also offer loans tailored to different customer segments.
- Bank of Baroda (BoB): BoB offers Loan against property in gurgaon with long tenure options and reasonable interest rates. Their loans are available for both residential and commercial properties.
Private Sector Banks:
- HDFC Bank: One of the leading private banks in India, HDFC Bank offers LAP in Gurgaon with interest rates starting from around 9.5%. They provide quick processing and disbursement of funds.
- ICICI Bank: ICICI Bank offers Loan Against Property with interest rates typically between 10% to 13%. They are known for their efficient processing and customer service.
- Axis Bank: Axis Bank provides LAP – Loan against property in Gurugram with interest rates in the range of 9% to 13%. They offer customized loan solutions and flexible repayment options.
Non-Banking Financial Companies (NBFCs):
- Bajaj Finserv: Known for their quick disbursement and flexible loan structures, Bajaj Finserv offers LAP in Gurugram with competitive interest rates and minimal documentation.
- LIC Housing Finance: LIC Housing Finance offers Loan Against Property – LAP in gurgaon with attractive interest rates, especially for salaried individuals. They also provide long tenure options.
- Tata Capital: Tata Capital offers LAP in gurgaon with interest rates starting around 10%, catering to both salaried and self-employed individuals.
At homeloanagents.in, we understand the importance of getting the right funding at right time. We have been in the industry for over 10 years and have helped more than 1000 Individuals in getting the required amount of Loan against Property. We have tie up with different PSU’s and private sector banks for different types of financing requirement such as Home Loan, Loan against Property or LAP in Gurgaon. We are top LAP – Loan against property consultant in Gurgaon.
Features & Benefits
Eligibility Criteria & Documents Required for LAP in Gurgaon
Eligibility Criteria
- Nationality: You must be Indian citizen residing in India.
- Age: The applicant must be between 23 years to 70 years
- Cibil Score: A Cibil score of 725 or higher is ideal to get a home loan.
- Occupation: Salaried employee, a Professional Individual, and a self employed professional.
Note : This is an indicative list that may change based on your actual loan application.
Documents Required
- KYC Documents ( Identity and address proof)
- Proof of Income (Salary slips or P&L Statement)
- Proof of Business ( for self employed applicants)
- Account statement for last one year
- ITR for last two years.
- Property Documents
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Frequently Asked Questions
To apply for a LAP in Gurgaon, you need to submit documents such as proof of identity, proof of address, Income Proof, Details of Property to be purchased, loan application form that has been duly filled and your financial documents.
We determine your eligibility after considering various factors, including your monthly income, your monthly financial obligations, your current age and your retirement age, among other things.
We have tie-up with Multiple Govt Banks, Private Sector Banks and NBFCs. We select the bank after considering various factors including your monthly income, your monthly financial obligations, your current age and your retirement age, property to be purchased among other things.
The rate of interest depende on various factors including customer profile and the bank from which we are arranging your loan against property. Typically the home loan ranges between 8.5% to 12%.
The EMI is calculated based on specific factors like the amount of the loan, its tenure and the LAP interest rate.
A floating rate of interest is linked to a benchmark rate. As per guidelines of RBI, floating rate are linked to external benchmark rates. So, rate of interest of your LAP changes in line with the Repo Rate. As a result, the EMI or the tenure of your loan will increase or decrease, depending on the change in the rate of interest.
A fixed rate of interest on a Loan against Property means that the rate of interest does not change throughout the tenure of the loan. So, the EMI will also remain fixed.
Tax benefits on Loans are generally available for purchase of Home for residential purpose.
Knowledge Centre
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