LAP loan can be availed by salaried professionals, self-employed individuals and also those, who have a stable source of income like rental income, etc. There is a minimum amount of salary that has to be earned by those who are employed and also a minimum limit of annual income earned by the professionals and other self-employed individuals. This condition is there to ensure that the people who can afford to repay the loans against property are the ones making use of the facility.

Home loan is basically to acquire a home. Here, the ownership comes to the borrower only with a clear purpose of owning a home. Loan against property is given to those who own a property that can be mortgaged. Tax benefits are given to home loan borrowers, whereas LAP lacks this benefit altogether. LAP loans are priced higher when compared to a home loan.

Yes, LAP loan is any purpose loan that can be used for any kind of personal or business needs. It typically acts as a personal loan, with the main difference being that security needs to be provided for LAP.

Yes, LAP is a perfect product to consolidate all your loans that are running at higher costs. Moreover, interest rate charged on LAP is relatively low when compared to unsecured loans.

Loan amount depends on the valuation of your property and also, the usage of the property. Typically, if the property is used for commercial purpose, loan is restricted to 50% market value of the property and for residential property, this may even go upto 60-70%. However, it is at the discretion of the bank to sanction the loan amount, depending on the repayment capacity of the borrower.

Yes, you can get overdraft against your property. Most of the banks offer this product under LAP head. The advantage with this product variant is that the interest would get charged only on the utilized amount.

Yes, you can get a LAP loan on your leased out property as well. In fact, if the lessee is a known corporate, then this is the perfect product to unlock the true value of your property. You can raise loan on the property and the monthly EMI shall be taken care of by the rental income, thereby, not putting pressure on your pockets. Such type of loan is also called Lease Rental Discounting (LRD). Most people use this product to add more property to their asset base.

No, you cannot get tax relief under LAP loan. However, you can list the entire interest incurred during the financial year, to your profit & loss account as expenses.

Yes, the EMI amount or the tenor of the loan could be altered if one has availed a floating rate of interest.

No, it is not mandatory to buy property insurance when you are availing a LAP loan. But it is in the interest of the borrower to insure property as it eliminates risk of loss of property.

Yes, you can sell the property even when the loan is active. However, you need to inform the lender and get a consent from them to sell. The title deeds shall be released to the borrower only after all the dues to the bank are fully paid off.

No, most private banks in India do not give a loan on plot. However, if there is a structure on the plot used either for residential or commercial use, then banks, after conducting due diligence and satisfactory checks, might sanction a loan. However, nationalized banks do consider plots to give LAP.

Loan against property is usually given for residential and commercial property, and that too for RCC structures only. A few nationalized banks and private banks do consider industrial property as an additional security to enhance the limits to business. However, it is purely at the discretion of the lender to sanction a loan against such properties.