Types of loan against property can be classified based on the purpose for which you avail the loan.

• Business Expansion Loans: Business entities can avail this facility for acquiring new machinery, purchase of plant, meeting working capital requirements, and invest in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55% whereas the LTV in the case of residential property is in the range of 65-70%.
• Working Capital Overdraft Facility: Banks sanction overdraft facilities against the property for meeting the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures:
• Property value and nature of the property
• Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.
• Personal Expenses: Individuals can also avail Loan against the Property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.
• Home Renovation: Usually, people do not avail this loan for renovating homes as there are separate schemes available at comparatively lower LAP interest rates. However, there can be circumstances when the borrower might have to resort to avail a Loan against Property for home renovation.
• Lease Rental Discounting: Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental

You can use the MyMoneyMantra EMI Calculator to calculate your Loan Against Property EMI. To do the EMI calculation, open our LAP EMI Calculator and just enter the details required to know the result. Along with the EMI, you also get a full chart showing the breakup of principal and interest repayment throughout the entire duration of the loan.

Following are the documents required for mortgage loan:

The best part about loan against property is that you can prepay your loan before the end of the repayment tenure if you wish to. As per the RBI’s rules, this facility does not involve any prepayment charges if the loan is based on floating mortgage interest rates. For other variants, lenders may charge prepayment charges to the tune of 2% to 5% of the outstanding loan. It depends from bank to bank.

Many types of mortgage loans exist in the industry, i.e., mortgages, commercial mortgages, and industrial mortgages. Each bank has its product and interest rate. It is tedious to compare the products offered by a range of banks.

MyMoneyMantra can help you in this regard. We procure information from various sources and display it on a single screen thereby allowing you to compare a range of products. It helps you make an informed decision. We help you with other aspects of the deal like demographics, income and repaying capacity, and so forth.

At MyMoneyMantra, you have access to:

• The lowest rate of interest: The comparison on the screen allows you to choose the lowest rate on offer.
• Lowest processing fees: Usually, banks charge processing fees to the extent of 0.50-1%. As there is an involvement of a high amount, processing fees can constitute a significant chunk of your expenses.
• Easy documentation: The credit team at MyMoneyMantra helps in completion of documentation formalities.
• Higher Loan to Value Ratio (LTV): The LTV differs from bank to bank. At MyMoneyMantra, you will be able to compare the various margin rates and choose the one most suitable for you.
• Prepayment clauses: These are hidden charges that borrowers usually ignore. It can be in the range of 2-5%. MyMoneyMantra helps you compare the prepayment clauses of various banks and help you find the best choice.
• Transaction charges: LAP requires the creation of an equitable mortgage of property. It can cost you a lot of money ranging from advocate fee, evaluation fee, stamp duty on mortgage registration, and so on. Some banks include the advocate fee and evaluation fee in their processing fee structure whereas some banks charge separately. MyMoneyMantra helps you make this distinction and gets the deal most beneficial for you.

MyMoneyMantra has specialists who have experience of over 28 years in the field of Loan against Property and can help you:

• Assess your demographic and personal profile.
• Examine your previous repayment record.
• Understand the various terms used by bankers such as Legal Scrutiny Report (LSR), and the other policies of the banks in connection with a Loans against Property.
• Understand the fine print that people frequently overlook.

ICICI, IDFC Bank, Kotak Bank, HDFC, SBI, Federal bank are some of the banks which are offering great deals on loan against property.

A mortgage loan is a loan provided by banks and other financial institutions against the mortgage of property or other assets for personal as well as business purposes.

You can apply for a mortgage loan through MyMoneyMantra, through the lender’s website, visiting the nearest branch of the loan provider or by calling on their customer care number.

A Reverse Mortgage Loan is a credit facility which provides an additional income source to senior citizens of India, who have a self-owned or self-occupied home in India. It is a financial arrangement designed for senior citizens to fulfil their funding needs.

Most lenders a maximum repayment tenure of 15 to 25 years for LAP.

You can get as much as 90% of property’s market value as a loan against your property, depending on your property’s value.

Yes, NRIs as well as PIOs can get LAP in India if they are salaried, work for a reputed organization in selected countries and own a residential/commercial property in India.

A home loan is availed for the purchase/construction/renovation/repair of a residential house property whereas LAP is availed to fulfill any personal or business requirement just like a personal loan.

Individuals with a minimum CIBIL score of 600 or above acain avail LAP.

You can also check mortgage loan interest rate

Yes. Being a secured loan, your application can be approved with a low credit score as well. You can also co-apply for the loan with your earning spouse or other co-applicants.