As its name implies, loan against property is a loan that’s given to borrowers against their property mortgages. The amount of loan paid out to users is usually 40 to 60 percent of current property market value. In Delhi NCR, LAP is placed in the Secured Loans category, where borrowers can place their properties as the security. LAP in Delhi NCR is usually offered with interest rate between 12 and 15.75 percent, with maximum tenure of fifteen years.
Consumers in Delhi NCR who plan to choose LAP with the cheapest rates should shop around for reliable lenders. Self employed individuals, salaried employees, private limited companies and partnership firms can avail loan against property.
Banks and financial institutions usually use their own methods to determine specific loan eligibility characteristics. The amount of LAP may range between Rs.2 lacs to Rs.10 crores depending on consumers’ financial ability, savings and the value of property used as security. The age limit applied for borrowers in India is between 18 and 60 years old. Borrowers in Delhi NCR can usually get higher loan amount by using residential properties as security than when using commercial setups.
After finding a LAP lender with the cheapest rate in Delhi NCR, borrowers should check all agreements about fees and penalties. Both components may make the total loan amount much higher than what’s offered by lenders with higher rates. It’s a good idea to build up excellent track record before applying for loan against property, by making timely payments of our current loans. Borrowers, who want to pledge their property for a loan, should be aware that they have used their most valuable assets as collateral and consequently, they shouldn’t rush into things too quickly.