A Loan Against Property (LAP) is a secured loan where the borrower pledges an existing residential, commercial, or industrial property as collateral to the bank. While the bank holds the property documents as security, the borrower retains possession and can continue using the property. The loan amount is usually a percentage of the property's current market value (typically 50% to 70%), and it offers much lower interest rates and longer repayment periods than unsecured credit.
Applicant details:
- Last three years balance sheet, copy of income tax return, copy of Individual return , Memorandum and Article of Association in case of limited company, resolution for loan application, Pay slip of last 3 Months in case of calaried persons As Applicable.
- Three photographs of Applicant.
- Business proof of Applicant.
- Applicants Pan card / Partners Pan Card / Limited Companys Pan card.
- Bank statement of last 2 years.
- Address proof-electric bill /telephone bill (any one).
- Photo proof Pan card / Voter card / Driving license/ Aadhar Card (Any one).
Guarantor Details:
- Photograph-two copies.
- Last Six Month property tax bill.
- Pan Card,income tax return 3 year copy / Pay slip of last 6 Months.
- Address proof -electric bill /telephone bill (any one).
- Photo proof -Voter card / Driving license/Aadhar card (Any one).
Conditions:
- Original documents of property such as share certificate, sale deed, tax receipt, allotment letter are to be submitted to the bank. Registered mortgage of property to be executed in favour of bank.
- N.A. , N.O.C and BU permission required.
- Insurance of the property with Bank Clause.
- Insurance of the property with Bank Clause.
- Title clearance and valuation report to be carried out through approved lawyer and valuer of the bank.
- Personal guarantee of two guarantors acceptable to the bank.
- Share Linkage as applicable.
- Quantom of advance / Loan as per eligibility.
