Loan Against Property

Loan Against Property (LAP) is an instrument to meet the financial needs of anyone who already owns a real estate or multiple property to get the best out of their assets. It’s important to note that the property which you are putting up for your loan should be free any encumbrance and not pledged anywhere. The value of your loan depends on the need or purpose, your property and your annual income.

Banks will always want to consider all possible risks to the maximum quantum, which is why while you are applying for your loan against property, there are certain factors the bank considers with respect to your property to mitigate its risks in giving out the loan. Despite all these factors are not in your control, these factors determine your rate of interest, and loan amount. You can get a LAP of up to 80% of the registered value of your property depending on the Bank’s policy and the property type and valuation. The value of the property would be determined through a valuation conducted by the Loan Provider.

Most of the financial institutions have their in-house team of technical valuator. However, in absence of third-party valuation you may not be able to negotiate the best of the deal for your LAP. It is incumbent that you have a technical valuator of your own while venturing out in the marketplace who has been in this business for decades and has close nexus of association to get the best deal for you.