Loan Against Property (LAP) is a type of secured loan that allows one to avail credit by mortgaging an owned land or property, be it residential or commercial as well as self-occupied or given on rent. A LAP can be used for purposes such as meeting medical emergencies, funding children’s higher studies, marriage expenses, or even starting up a business or financing a much-awaited international or domestic trip.
Under a loan against property process, the lender evaluates the current market value of the pledged property and disburses a loan amount equivalent to the same to enable one to get the required credit requirements.
Key Features of Tata Capital’s Loan Against Property
Following are some of the key features of the loan against property offered by Tata Capital –
- Loan Amount – One can get a loan of as low as Rs. 10 Lakh and as high as Rs. 3 Crore by mortgaging their property with Tata Capital.
- Loan Tenure – A loan against property can be availed for 12-18 months.
- Rate of Interest – Tata Capital offers loans against property at highly affordable interest rates, beginning from just 10.10%.
- EMI Options – At Tata Capital, one can choose between two EMI options, namely Standard EMI Plan and Step Up Flexi EMI Plan. Under the Standard EMI Plan, one re-pays the loan in the traditional manner consisting of principal amount and consistent interest amounts. However, if one chooses the Step-Up Flexi EMI Plan, then they can pay lower EMIs at the beginning of the loan tenure and higher EMIs later.
Process for Loan Against Property with Tata Capital
One can secure a credit with Tata Capital by following this process for loan against property –
Step 1: Check Loan Qualification with Our LAP eligibility calculator
The first and foremost step in the LAP loan process is an assessment of one’s eligibility for the credit. For this, borrowers can use the LAP eligibility calculator available on our website. To use our LAP eligibility calculator, one needs to provide details like their monthly income and expense, city of residence, date of birth, existing EMIs, and the tenure for which one wishes to take the loan.
Step 2: Choose Loan Amount and Tenure
As a next step, one needs to select the amount of loan which they wish to avail of by pledging their property and the tenure for the credit.
Step 3: Submit Loan Application and Required Documents
After choosing the loan amount and tenure, one needs to fill out our loan application form with details like Name, Date of Birth, PAN, Property Type, Reason for LAP, Property Value, and Required Loan Amount. Along with the submitted form, one must provide the following documents –
- An ID Proof such as Aadhaar Card, PAN card, Passport, etc.
- An Address Proof, such as a bank passbook or a utility bill
- Income Proof such as ITR, Form 16, etc.
- Last 6 months’ bank statement
- A passport-sized photograph
Step 4: Get the Loan Amount in Bank
Once the completed loan application form and the required documents are submitted, one of our loan approval officers evaluates the applicate and approves the disbursal of the credit in the bank account of the borrower if all the details are complete and the borrower is eligible for the credit.
Loan Against Property Processing Fee
At Tata Capital, we levy a loan against property processing fee for the administrative expenses incurred while processing loan applications. For, Residential and Commercial properties, loan against property processing fee stand at 1% of the loan amount plus the GST. Whereas the LAP processing fee for all other properties stands at 1.25% of the loan amount along with the GST. For mint loans also, the LAP processing fee is 1.25% of the loan amount and the GST.
For detailed information on Tata Capital’s LAP fees and charges, please click here.
A Loan Against Property can be a good form of availing credit in terms of emergency as it enables a property owner to get the required finances without losing the ownership right of their property. At Tata Capital, we provide quick and easy processing of loans against property to help meet their urgent fund requirements, along with an overdraft facility to keep enough liquidity available to our borrowers. We also accept a wide range of collaterals to cater to borrowers with different types of properties and provide a pre-qualified loan top-up to help them further meet their financial obligations easily and instantly.