In the financial market today, we routinely come across the term “LAP – Loan against property”. This basically means that you can apply and avail a business loan against any commercial or residential property as a collateral. This is a form of secured loan that is available today. The security in these types of loan are basically the property that is owned by the person applying for the loan. Valuation of the property is done to decide the amount of potential loan that can be sanctioned to the particular individual.
For loan against property, here are the types of property that can be availed:
- Self-owned residential property
- Self-owned and self-occupied residential property
- Self-owned land
- Self-owned commercial property
- Self-owned but rented residential property or commercial property
Whatever your needs may be, a loan can be made easier for you to get with quality services at Finwizz Financial Services. Starting your business is difficult enough. Having proper amount of funds in your bank account is important for you to kickstart your dream. We can help you through each and every step of the process of acquiring a LAP – loan against property.
However, value of your property is not the only eligibility criteria that banks consider while considering whether you are eligible for a loan or not. As a general rule, leading banks sanction loans that is approximately around 65% of your property valuation. The tenure offered is around 15 years and the rate of interest for business loan against property vary from 8% to 12%.
Some other aspects that are taken into consideration when you are applying for loan against property are income details, savings, employment track, any current loans, credit score and other facets before coming down to a decision. Getting a loan becomes easier when you have all the basic documents in place like
- KYC like age and address proof
- Income documents
- Ownership documents for property
- Cheque for the processing fee
- Bank statements of the last 6 months
Finwizz Financial Services will help you with documentation and profiling to make it easier for you to get a loan swiftly and smoothly.
Consumers prefer business loan against property mainly because they are cheap and pocket-friendly. They come second to only home loans. They are also a good way to liquidate some money. You just need a carefully drafted plan before applying for business loan against property. With Finwizz Financial Services, you don’t have to worry about your loan needs. With our planned approach, we will make sure that the process becomes as speedy and smooth for you as possible.