Loan Against Property
What is Loan Against Property?
A Loan against property or LAP is a loan given by the lender to the borrower against the property mortgaged. Unlike the unsecured loan, the loan against property involves a security that is the property, which the borrower can mortgage in case the loan is not repaid by the borrower. Hence, it is a type of mortgage loan. In such loans, the market value of the property is calculated and the loan furnished is a certain percentage of the market value of the loan.
Documents Required for Loan Against Property?
- Bank Account Statement for the last 6 months
- Business continuity proof for 5 years
- Complete loan application form with passport size photographs
- Valid Proof of Applicant's Identity and Address Proof
- Financial Documents: Copies of IT returns for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for last two years audited by a C.A.
- Certificate of Incorporation : GST Registration Certificate / Partnership Deed / MoA & AOA
Frequently Asked Questions ?
All the co-owners of the considered property need to come in as co-applicants to the loan.