Documentation for Loan Against Property - What You Need to Know

1. Documentation for Loan Against Property - What You Need to Know

2. What is Loan Against Property (LAP)? • You can take it against an idle residential or commercial property • Large loan amount usually • Long tenure and affordable interest rate • Easy repayment • Can use to fund business expansion, medical expenses, weddings, education etc.

3. How Does LAP Work? • Different types or sizes of property can be pledged – factory, apartment, land, shop etc. • Property title should be marketable and undisputed • Property should be insured against natural calamities and fire • Post valuation, lender will sanction 60-80% of property value as loan

4. LAP Eligibility • Both business owners and salaried people can apply • Property should have insurance and a clear title • Lender may consider borrower’s income, age, occupation etc.

5. LAP Documentation • Properly filled application form • ID proof – Voter ID, Aadhaar card, driver’s license, passport etc. • Address proof – Phone bill, rental agreement, property tax receipt, account statements or any of the ID proofs • Income proof – Salary slips of last 2 months, last 6 months’ account statement, form 16/IT return • Property documents – To prove chain of ownership and property plan

6. Things to Consider Before Applying for LAP • Make sure to use the funds productively • Create a convenient repayment plan • Pick the right tenure – long tenure means high interest burden • Choose from fixed, floating, flat and reducing interest rates

7. Conclusion You retain property ownership when you avail Loan Against Property, as long as your documentation is flawless, and repayment is timely.

8. Thank You !Would Love to Hear From You Hero FinCorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel. 18001024145 Email Id: Corporate.Care@HeroFinCorp.com Website: https://www.herofincorp.com/ Know more- Documentation for Loan Against Property - What You Need to Know