A loan against property or LAP is a loan taken against a residential or commercial property. The property value is assessed before the loan is sanctioned, and the percentage of the property value is given as a loan. One can check their loan against property eligibility online as different lenders have different terms. Make sure you do your research and choose a lender that you are comfortable with.

You must disclose what you are going to do with the money and how you plan to return it as a part of repayment. The loan amount could be anywhere from 40-60% of the property. This is based on the new assessment done and is 40-60% of the current market value. 

Now the tricky part

Getting a loan is difficult, as they will ask you for your income proof even if you are offering collateral. This can be tricky as the lenders need assurance about how you are planning to repay the loan.

• You can talk to the relationship manager at the bank and ask if there is any other reassurance that you can give to procure the loan. You can offer collateral or tell them how you plan to repay the said loan in the future.

• Another way to do this is to get a co-applicant. The co-applicant must have a good credit record and a valid proof of income so that the lender can see the EMIs coming in soon after the loan’s approval. 

Must Read: What Is The Difference Between Home Loan Vs Loan Against Property?