What is a Loan Against Property

A loan against property from loans4you is the perfect solution for all your needs. You can avail funds for your personal or business expenditures with the help of banks or financial institutions.

These funds can be used for leisure or business no matter what your need. It is your money coming to your aid at times of need. May it be purchasing a commercial property, starting a business, capital for your existing business, developing an existing business, or something as personal as your expenses for your wedding, your child's education, leisure travel, or an unexpected doctor's appointment.

Sometimes planned and organized events bring huge, unexpected expenses. In these particular instances, you can always rely on a LAP. Loan Against Property can raise a lump sum amount with longer terms, which results in lower EMI at a lower rate of interest. It also means that you can raise funds without selling your property, and in return, you pay an interest rate lower than unsecured loans.

Loan Against Property Emi Calculator

With the help of the Loan Against Property EMI calculator, it will be easy for you to calculate Monthly loan installments and to have the exact bifurcation of principal and interest you pay for the whole tenure. Loan Against Property EMI calculator takes principal amount, interest rate, and loan tenure as input and provides you the payable monthly EMI’s. Therefore, before choosing a particular loan, it is very important to have an understanding of these three parameters and how do they relate to the loan EMI

Why choose loans4you for Loan Against Property Application ?

Applying for a Loan Against Property online is easy and convenient. Loan Against Property providers has made available the application form on their website. You can register on the website, fill in the application and submit it along with your documents in electronic form. You can make your loan application payment online too.

The offline route requires you to visit the loan provider’s office, fill in the physical copy of the loan application form, which is more time-consuming, provide physical copies of your documents and make the loan application payment via cheque. All of this takes longer and more effort than the online route. Technology makes applying for Loan Against Property Online easy and convenient (all you need is a computer and an internet connection). In comparison, the traditional offline route is time-consuming and inconvenient, requiring you to commute along with your documents to the offices of the loan provider.

Dos and Don’ts while applying for a Loan Against Property
Do's Dont's
1. Checking the loan eligibility 1. Avoid applying with multiple lenders as it will give the wrong impression of you
2. Research about the lenders plus, and don't hesitate to ask for second opinions or review online. 2. Faulty documents
3. Secure your finances and the documents 3. Don't exceed your limits as it will delay your repayment period leaving a wrong impression of you.
4. Complete the application process in a single try 4. Don't apply for a home loan if you already have multiple loans.
4. Compulsorily ensure that all the details you provide are accurate so that you come out as trustworthy. 4. Avoid getting conned by non-trustworthy lenders & for that, you refer to loans4you.in, here you have access to the best deals from certified banks.

Types of Loan Against Property

Loan Against Residential Property

Loan against residential property, which can be self-occupied or rented. The loan is given on the property's market value, around 60-70 %; however, it varies from bank to bank.

Loan Against Commercial Property

Loan against Commercial property, which can be self-occupied or rented. The loan is given on the property's market value, around 50-60 %; however, it varies from bank to bank.

Purchase of Commercial Property

A loan is given to purchase commercial property. Typically, the bank provides 90 to 100 % of document costs subject to 50 to 70 % of market value. However, it varies from bank to HFC.

Lease Rental Discounting

Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from lease contracts with corporate tenants. It is based on long-term cash flow from banks using rental receipts as collateral.

Overdraft Facility Against Property

Overdraft facility against property helps you manage your fund requirements for business needs with the Drop-line Overdraft against Property where you pay only for what you use.

Compare Loan Against Property Interest Rates of All Major Banks

An Important component and deciding factor in Loan Against Property is the Rate of interest. There are different types of Rates of interest available in the market and before deciding on the rate you should understand the advantages and disadvantages.

An interest rate charged by a lender to a borrower for Loan Against Property is given, generally expressed in percentage. Interest rates are directly proportional to the amount of risk associated with the borrower.

The annual interest rate refers to the rate that is applied over one year. Interest rates can be applied over different periods, such as monthly, quarterly, or bi-annually. However, in most cases, interest rates are annual.

Compare Present Loan Against Property rate of interest rates, processing fees, Maximum tenure of major banks like ICICI Bank, Axis Bank, TATA Housing, HDFC, Yes Bank, PNB Housing, and many more to choose from. We have provided you a table for Loan Against Property comparison among the best Loan Against Property in India at the lowest interest rate

Banks Interest Rates Processing fees Get Into It
HDFC 8.50% to 9.00% 1% of the loan amount Plus Tax Apply Now
ICICI Bank 8.35% - 9.25% 1% of the loan amount Plus Tax + Admin Fee of Rs 5000/- Apply Now
Axis Bank 10.50% - 11.25% 1% of the loan amount Plus Tax Apply Now
PNB HFL 9.50% - 10.15% 1% of the loan amount Plus Tax Apply Now
IDFC First Bank 7.35 % Onwards 1% of the loan amount Plus Tax Apply Now
Yes Bank 9.00% - 11.00% 1% of the loan amount Plus Tax Apply Now
Tata capital 10.10% 1% of the loan amount Plus Tax Apply Now

How much Loan Against Property amount can you get based on Your Income ?

Bank/NBFC calculates the maximum Loan Against Property eligibility based on your monthly / Yearly Income. 45 % to 100 % of your Monthly Income is considered for calculating the eligibility which also depends upon individual profile & Bank/NBFC, which means you can get a higher loan amount if your monthly income is high. Your present obligation, if any, can also affect your Loan Against Property eligibility. If a Loan Against Property applicant is already paying an existing obligation, that will be deducted from the monthly income and the remaining amount would decide your maximum loan amount eligibility.

Bank/NBFC calculates Fixed Obligations to Income Ratio (FOIR) based on your existing EMIs and monthly income. The percentage of FOIR should be between 45-70% and less. For instance, if your in-hand salary per month is Rs 100000 and you are currently paying a personal Loan EMI of INR 6000 and an Auto loan EMI of INR 10,000 and you want to know how much loan amount you can get for a Loan Against Property, your FOIR would be:

Your disposable income for a new loan is (Considering FOIR-50%): Rs. 50,000 - Rs. 6,000 - Rs. 10,000 = Rs. 34,000
FOIR = Sum of existing obligations/Net take home salary*100
FOIR = ((Rs. 6000 + Rs. 10,000)/ Rs. 100000) * 100
FOIR = (Rs. 16,000/ Rs. 100000)*100
FOIR = 16%

So, Bank/NBFC will approve the loan amount having a monthly instalment maximum of Rs- 34,000 or less even for the longest tenure. Other factors such as your credit score, experience, age, and other factors can also affect your loan amount.