Having an asset or property can be advantageous in many ways. In an economic context, if you own a property, you can leverage the same to apply for a loan against property. The good news is that you will still be an owner of your property while availing the loan. Hence the loan against property is considered one of the most popular secured loan types in the market.

Benefits of Loan Against Property:

• LAPs have lower interest rates than unsecured loans like personal loans.
• The loan tenure can go upto 15 years in comparison with the limited tenure of personal loans.
• Since the loan type is secured, the lenders have made the documentation process relatively flexible and simple for your benefit

Loan Against Property Eligibility:

As a borrower, you can leverage the loan against property EMI calculator to know the details of the loan. However, a lending institution would assess the following factors to qualify you for a LAP:

• Must be of 21 years of age with the age limit upto 60 years for the salaried and 70 years for the self-employed
• The value of the property
• The credit score of the borrower
• The income capabilities of the borrower. The lenders do expect minimum income sources to qualify for LAP

Conclusion:

You can check with your lender on the documents that need to be submitted to avail LAP which would be typically KYC, property, income proof documents. One needs to check with multiple lenders and decide on the best financial partner who can provide better benefits. 

Additional Read: How to calculate your Eligibility for a Loan Against Property?