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LAP Rates

The tenure for the Loan Against Property is typically longer than that for the personal loan. Usually, Loan Against Property is given for an utmost tenure of ten years. Since the charge of interest is less, several times, Loan Against Property equated monthly installments become cheaper than the rates under personal loans.

Loan Against Property, just like the personal loan, could be taken for any of the reason. The reason for borrowing doesn’t have to be revealed to the lending organization. Also, the decisive factors for Loan Against Property are the same as those for the home loan. Part forestallment as well as full forestallment of Loan Against Property is also allowable by most of the lending organizations; many lending organizations do no charge extra accuses on forestallment.

However, the following points have to be borne in mind while applying for a LAP:

Some financial institutions make LAP available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalizing a LAP from lending institutions.

Loan Against Property is generally allowable against housing property. In other words, you can not have a loan by mortgaging your profitable premise. Actually, even if you have the property that is rented out, or you have a property but you are not staying in it (such as a farmhouse), then also you may not be entitled to take a loan against the property. But in fact, some lending organizations do not have any this type of criteria. Here also, the borrower requires being conscious of what is on proffer and working according to that.

Many housing finance corporations allow persons to take Loan Against Property if they have already taken a housing loan. The only precondition- a least amount of one year's EMIs require to have been salaried on the home loan.

Many housing finance companies allow individuals to take LAP if they have taken a housing loan from them. The only pre-requisite- a minimum of one year's EMIs need to have been paid on the home loan.

All in all, LAP proves to be a useful proposition. In fact, more so in case some individuals have been disqualified for the purpose of a home loan.

There is a certain set of individuals to whom HFCs are apprehensive giving a home loan. For example, artists or individuals in the modelling profession are not looked at with a favorable disposition by HFCs. Such individuals can always opt for a LAP in case they have a property in their name.