Unlike an unsecured loan, loan against property (LAP) is a secured loan that is given by mortgaging a self-owned property (residential or commercial) with the lender. Typically, LAP is a loan that you can access against residential or commercial property including a house, flat/apartment, office, or a shop. To avail of a loan against property and acquire funding for your prospective business, you need to have a self-owned property with a clear and marketable title. Such a loan can be utilised in meeting business requirements such as the expansion of business, ploughing funds into the existing business to ensure growth, maintain steady cash flow, or even meet short term or emergency business needs. Such a loan helps a small business owner to remain in control of the business, unlike other investments in which lenders may seek to gain part control of the company. LAP is designed to meet such requirements of small businesses and remains one of the critical sources of financing for businesses.
Such a loan provides you with easy access to funds in which your existing property is used as collateral. It remains one of the most popular loans because of its long repayment term and low-interest rate. There are critical aspects that are considered in determining your loan eligibility including income, credit history, and the current value of the property.
|Type of Loan against Property||Loan to Value Ratio|
|Loan against residential property||60% to 75%|
|Loan against commercial property||60% to 70%|
|Loan against industrial property||50% to 55%|
If you are looking at moving into a new office or expanding your business, your search ends here. We provide loans for purchase of commercial properties. We assist you to acquire a new commercial property to meet the requirements of your growing business
Lease Rental Discounting helps to raise funds against the future expected rentals of self owned commercial property. To avail this loan the property should be occupied by the Lessee.
We arrange project finance for builders by the way of hypothecation of future receipt in upcoming / ongoing residential or commercial projects. This type of finance is secured against land & proposed building & can be sanctioned & disbursed within a span of one month.
Your eligibility depends upon your repayment capacity as determined by Financial Institution. Factors like your income, age, qualifications, number of dependants, spouse’s/Co-applicant income, assets, liabilities, savings history, stability, property value and continuity of occupation are considered while computing your eligibility.