Loan against property (LAP) business or personal finance purposes

Loan against property is a lucrative financial instrument that provides safe, secure and financing against mortgaged assets. If you need funding to fund your child’s higher education, manage your wedding expenses, or improve your business, getting a LAP plan proves to be a positive. If you are looking for more on what are loans against assets, you should know that these loans do not have end use restrictions. In addition, loans against assets obtained from NBFCs such as Khannan finance allow you to handle any medical expenses in an unprecedented manner.

LAP helps you consolidate your current debt. Some of the benefits you can get from this plan are getting enough funds to pay off debts, low benefits, long term repayment and guarantee for any property.

 

The different types of loans against property in India are –

1. Loan against residential or commercial property.
2. Loan against property for the self-employed individuals.
3. LAP for salaried professionals.

A few other kinds of loan against property include:

• Home renovation
• Education
• Wedding
• Balance transfer
• Debt consolidation
• Chartered Accountants
• Doctors

All of these are tailor-made and designed to fulfil a particular financial purpose of the borrower. Avail the most suitable loan and cover a wide range of expenses.

 

 

Type of Loan against property:

LOAN FOR COMMERCIAL PROPERTY: - Loan for purchase/ construction of commercial property in approved areas. This includes loans for office space, shops.

LOAN AGAINST PROPERTY FOR BUSINESS EXPANSION: - It is also known as Business Loan with Collateral Security

LOAN AGAINST PROPERTY FOR PURCHASE OF ANOTHER PROPERTY: -To meet shortage of fund to buy another property.

LOAN AGAINST PROPERTY FOR PERSONAL PURCHASE: - LAP can also be used for personal purposes like Wedding etc.

LOAN REPAYMENT

Loan repayment is in Equated Monthly Installments (EMI) comprising of principal and interest through Post Dated Cheques/ Electronic Clearance System over a maximum period of 15 years. However, some Bank may provide even 20 years.

PROCESSING FEE AND OTHER CHARGES: -may vary Bank to Bank and nature of loan, property etc. even in some case may be nil.

CHARGEABLE RATE OF INTEREST: - Nature of property, Bank to Bank Policy, Purpose of Loan would be criteria for Rate of Interest.

HOME LOAN: - could be available at very cheap Rate of Interest in comparison to all type of Loan.

 

 

Floating rate loan against property means the rate of interest charged by the lender keeps changing with respect to the rates in the market over the tenure of the loan. Generally the rate charged is based on the cost of funds and the prevailing market rates. These rates vary periodically. Accordingly the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the rates move upwards or downwards.

Why We Go Loan Against Property? 

Loan against property (LAP) has the low interest rates which can be used for business or personal finance purposes:

1. These loans can be used for expansion of the business and meeting the credits of the business and bonafide needs.
2. The loans are easy to avail so they can help in case of an urgent medical financing.
3. The loans are also useful to facilitate the renovation or repair/extension purposes in the house or flat.
4. The loan can be used if there is a marriage in the house.
5. The parent can use this loan for sending the child abroad for higher studies.
6. One can use the loan to fund a vacation to an attractive tourist destination.
7. 

Below are the types of Loan Against Property that are available:

1. Loan against Rented Commercial Property

2. Loan against Self Occupied Commercial Property

3. Loan against Vacant Residential Property

4. Loan against Rented Residential Property

5. Loan against Industrial Property

In all cases, you will require money. In the event that you are wanting to go for a credit at that point ensure that this advance isn't unsecured in nature. Else, you may need to pay a high rate of intrigue. Secured credits, for example, the Business start-up advances, are constantly better regardless and every single money related advisor and organizers likewise encourage the borrowers to have such advances as it were.

The best favorable position of owing a property is that it can offer ascent to more properties. By and large, saying advance against property is that sort of advance that can be benefited by you subsequent to promising any of your own properties with the moneylender. As a borrower, you will get the credit at exceptionally sensible rate of intrigue and you can benefit the advance for any reason.