SBI Loan Against Property

To meet your fund requirements for personal purposes such as marriage, education, healthcare, etc., you can avail loan against property (LAP) from SBI. LAP is an all-purpose loan that can be availed by mortgaging your property at a competitive interest rate and repayment tenure up to 15 years. Loan against property can be availed up to Rs. 7.5 Cr. subject to location and cost of the property.

Salaried employees, self-employed, professionals who are IT assesses and owns commercial or residential property in his/her name or the name of spouse/children/sibling.

Advantages of SBI Loan against Property

Quick processing of loans

Transparency in operations

Wide network of branches to avail loan

Rate of interest levied on a daily balance reducing method

Extremely competitive and low processing fee

Rental income is also taken into consideration

No prepayment charges

LAP/ Loan against property can be taken from banks, non-banking financial Institutions, or housing finance companies by keeping your commercial or residential property as collateral. LAP is a secured loan that can be used to meet all sorts of personal and business requirements. The potential loan amount is decided by the market value of the property.

The interest rate in loans against property

A loan against property is a simple and convenient option for customers to avail loans against their commercial and residential property. Most of the banks offer loans commencing from five lac and loan tenure up to 20 years.

A loan against property can be taken at a fixed or floating rate of interest.

Fixed-rate of interest for availing LAP remains constant throughout the loan tenure.

The floating rate of interest for availing loans against property varies from time to time depending on the changes in government rules, RBI policy, supply of money, etc.

The interest rate usually ranges from 9% to 12% based on various factors like property type, self-occupied residential or commercial property, non-self occupied residential, or commercial property.

Best companies providing Loan against property

ICICI Bank

HDFC Bank

Axis Bank

State Bank Of India

Eligibility

Most lenders/banks/ NBFCs offer loans against property to individuals above 24 years of age like salaried employees, self-employed professionals, businessmen, etc. The maximum age at the time of maturity should not be more than sixty-five.

Documents required to apply for a loan against property

The requirements of documents may change for different financial institutions. Usually, the following documents are required for gold loans.

Application form for LAP
Self-attested KYC documents including Copy of PAN Card, Copy of Aadhar Card
Photograph of the borrower
Income proof - latest salary slip, form-16, bank statement for salaried & Copy of ITR and Tax Audit report, bank statement in case of self-employed
Post disbursement documents, if any

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FAQs

Q. How can the loans against property be used for?

Ans. A loan against property is a secured loan that can be used to meet all sorts of personal and business requirements such as medical purpose, education, wedding, business expansion, marketing, promotion, etc. ?

Q. What is LAP?

Ans. LAP/Loan against property can be taken from banks, non-banking financial Institutions, or housing finance companies by keeping your commercial or residential property as collateral.

Q. What are the best LAP-providing companies?

Ans. Best Loans against property providing companies are ICICI Bank HDFC Bank Axis Bank State Bank Of India

Q. How does a loan against property work?

Ans. LAP/ Loan against property is taken by keeping your commercial or residential property as collateral. The potential loan amount is decided by the market value of the property. The loan amount is repaid in equated monthly installments.

Q. What are the eligibility criteria for availing loans against the property?

Ans. Most lenders/banks/ NBFCs offer loans against property to individuals above 24 years of age like salaried employees, self-employed professionals, businessmen, etc. The maximum age at the time of maturity should not be more than sixty-five.

Q. What is the prevailing interest rate in taking LAP?

Ans. The interest rate in LAP usually ranges from 9% to 12% based on various factors like property type, self-occupied residential or commercial property, non-self-occupied residential or commercial property. ?

Q. What is the difference between a loan against property and a home loan?

Ans. A home loan is the amount of money borrowed to purchase or construct a home, while a loan against property is availed by keeping the existing property as security and the loan amount can be used for various purposes.

Q. What are the documents required for a loan against property?

Ans. The requirements of documents may change for different financial institutions. Usually, the following documents are required for gold loans. ? * Application form for LAP * Self-attested KYC documents including Copy of PAN Card, Copy of Aadhar Card * Photograph of the borrower * Income proof - latest salary slip, form-16, bank statement for salaried & Copy of ITR and Tax Audit report, bank statement in case of self-employed * Post disbursement documents, if any ?