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Housing Loans in Mumbai

Loan against property or LAP - this concept is not at all new in our country. On the contrary this has been an age old way of arranging money in times of need. In fact, plots of many old Hindi films

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Loan Against Property

Home Loans Mumbai

Loan against property or LAP - this concept is not at all new in our country. On the contrary this has been an age old way of arranging money in times of need. In fact, plots of many old Hindi films have been based on Ajay& Vijay’s struggle to recover their father’s mortgaged house or land from the hands of the filthy rich & dishonest Lalaji.

Coming back to today’s reality, with the intervention of the private & nationalized banks, this procedure shredded off its shady nature that could have misguided the normal people & emerged as LAP, the most convenient, simple & transparent method of obtaining a loan. The two cities in India which have been through the most rapid change in lifestyle are Mumbai & Bangalore. The cost of living is so high in these two cities that at times it is hard to make both ends meet. So taking a bank loan against property in Bangalore & bank loan against property in Mumbai is a common phenomenon.

PURPOSE

Getting secured loan against property may serve a number of purposes. It may help you in ensuring a fixed source of finance for establishing or expanding your business. It may even fulfill your dreams about sending your children to some fancy college for attaining higher education.

And, then you never know when you may just be in need of a big amount for cushioning medical emergencies or any other unforeseen circumstances.

For any of the above mentioned purpose loan of upto 80% of the registered value of the collateral property can be obtained depending on the bank policy, property type and valuation. Usually, the banks sanction a property value of 40-60 percent.

MORTGAGE-ABLE PROPERTY

Loan against property is normally given against residential property that is either rented or self-occupied. This could either be a house or land. Commercial properties like shops & offices can also be mortgaged for this purpose.

Interested rates & Tenure of repayment:

Interest rate for LAP may range from 12% to 15.75% & the loan tenure can extend up to 15years.

WHO IS ELIGIBLE?

Two criterions are seen before disbursement of loan against property. They are:

  • Financial criteria: This includes income, savings & debt obligations of a person. This also includes your loan repayment records.
  • Property criteria: This includes the valuation & legality of the collateral property.

DOCUMENTS REQUIRED

  • For a salaried professionals: Pan card, Residence proof, Company Id card, Loan Repayment Track Records (if any), Latest CTC, Form No.16, the latest salary account statement bank statement for last 6 months and Latest Salary slip for last 3 months.
  • For a businessman/ self employed person: Pan Card, Residence Proof, Last 3 yrs Income Tax Returns, Bank statements and Office Proof

Loan against property in Mumbai is tougher to get than home loans in Mumbai. Mumbai being the most cosmopolitan city of India has some extremely negative areas, properties situated in which cannot be considered as a security for loan. Also some huge properties in Mumbai have been rented for years.

Those are often given to bank as security with the intention of being defaulter & transferring the hazards related to property to the bank. Such properties are also not considered. Loan against property in Bangalore as well as in Mumbai is not sanctioned for a salaried person unless his monthly income is Rs.15000 or more than that.

Apart from some rare complications bank loan against property is the best way to realize the value of your property without actually letting it go off your hand.