How to avail loan against property?

How to avail loan against property?

Investing in property has always been a top recommendation from the top investors. With well-chosen assets, investors can get a higher return on investment, excellent cash flow, tax advantages, and much more. Vacant land can be used in multiple ways:

  • To build a property for personal use
  • For rental or commercial usage
  • For getting loan

 The land is one asset with which you can build multiple assets as one of the easiest and most secure ways to get a loan from a bank is via loan against property.

What is Loan Against Property (LAP)?

A loan against property (LAP) is a secured loan that is offered by banks, housing finance companies, and NBFCs against residential or commercial property. The rate of interest offered on LAP is lower as compared to a personal loan or business loan and is disbursed at a reasonable time.

Who can avail of these loans?

Anyone with a pre-owned property can avail of such loans, whether they are salaried or self-employed in a business or professional setup. The quantum of loan sanctioned is also higher than what may be offered in other available options.

Why is LAP in demand?

The demand for LAP is increasing tremendously among individuals because of three primary reasons:

  • It is cheaper than a personal loan;
  • The borrower can continue to occupy his or her property even after the loan is availed;
  • The loan can be used for a variety of purposes such as unforeseen medical expenses, children’s higher education and marriage, or setting up a business

A loan against property is profitable for both business owners and people on pay-rolls as one can use these funds in multiple channels. Moreover, a LAP not only leaves one’s savings intact but also comes at low-cost EMIs with repayment tenures of as long as 15 to 20 years. The low-interest rates on such loans reduce the repayment burden significantly.

How to avail LAP?

The only criterion for availing of a loan against property is that the loan should be for a legitimate purpose. Further, the process depends on the following factors:


A self-employed person or an employee, both are eligible for a loan against property. However, the process varies from lender to lender and depends on the borrower’s income, credit history, documentation and the value of the property.

Salaried individuals:

An applicant should be between 33 to 58 years of age and should be a salaried employee in an MNC, a private company or the public sector. He/she should be a resident of the country they are applying for a loan at.


One should be between 25 to 70 years of age and should be a self-employed individual with a regular source of income. A loan against property is a more preferable option as compared to a personal loan due to the longer repayment period and lower rates of interest.


A salaried person needs to submit 2 month’s salary slip (If variable components are present in Salary Structure) and the Latest year Form-16 and Bank statements for the last 3 months. Whereas, Self-employed Individuals / Professionals need to submit the latest 2 years of IT returns and computation of Income (firm & individuals) along with the latest 2 years’ P&L statements, balance sheets (along with all the schedules) and Capital Account Statements, certified by a C.A. AND Latest 2 years Audit Reports

Await the verification of the documents:

Once all the necessary documents have been submitted, the lender verifies them. This includes verifying personal, income, employment, and property details concerning the application form.

Receive a sanction letter from the lender:

After successful completion of the validation process, the lender will make an offer for a loan against the property.

Property evaluation and legal check:

When the borrower accepts the offer, the lender systematically evaluates the property and the related papers through legal and on-ground channels. This will be done to ensure that the property has the required value and is not under any legal dispute.

Receive funds into your account:

Once the evaluation is completed, the lender will disburse the funds directly into the borrower’s bank account.

To conclude, it can be stated that when one invests in the right property they can avail multiple benefits from it. Therefore, make the right decision by purchasing your land from Landsale4U and be rest assured of your purchase. For more details please visit:

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Land record is a generic term which is used to refer to a number of records. These include Records of Rights (RoRs), register of the lands, crop inspection register, tenancy, mutation register, disputed case register, and so on. Land record also includes certain geological information in regard to the land such as the shape and size of the land, type of soil on the land. It can also include the economic information in relation to the irrigation and crops.

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