Loan Against Property (LAP) is a secured loan that allows borrowers to pledge their residential or commercial property to obtain funds from banks or other financial institutions. This loan is becoming increasingly popular in India due to its lower interest rates and easy approval process. However, before applying for LAP, it is essential to find out the lowest interest rate for the same.
Here are few key pointers that will help you to know how to find out the lowest interest rate for LAP:
1. Understand the LAP rate of interest
Before applying for any Loan Against Property (LAP), it is crucial to understand the concept of LAP rate of interest. The LAP rate of interest is the percentage of interest charged by the bank on the loan amount borrowed. The interest rate varies from one bank to another and depends upon various factors such as the loan amount, loan tenure, applicant’s credit score, and property value.
2. Compare the LAP rate of interest
It is essential to compare the LAP rate of interest charged by different banks and financial institutions before applying for the same. One of the best ways to compare the LAP rate of interest is by visiting the official website of the bank or by visiting a financial aggregator website like mymoneymantra.com.
Mymoneymantra.com is an online platform that allows borrowers to compare various LAP products offered by different banks, NBFCs, and other financial institutions in India. The website offers a comparison chart that highlights the LAP rate of interest charged by different financial institutions, easy EMI calculation, and other loan-related details along with the option to apply for LAP online.
3. Check the tenure of LAP
The Loan Against Property rate of interest is also dependent on the tenure of the loan. The longer the tenure of the loan, the higher the LAP rate of interest. Hence, it is essential to select the shortest possible tenure of the loan. However, while doing so, it is equally important to ensure that the EMIs are affordable for you. To calculate your EMI, you can use the EMI calculator available on the financial aggregator website.
4. Check the eligibility criteria for LAP
Before applying for LAP, it is essential to check the eligibility criteria for the same. The eligibility criteria may vary from one bank to another depending on various factors like age, income, property value, and repayment capacity. Hence, it is crucial to check the official website of the bank or the financial aggregator website like mymoneymantra.com to know the LAP eligibility criteria.
5. Check the LAP documents required
To apply for Loan Against Property, you need to submit a list of documents. The documents required may vary from one bank to another. However, some of the common Loan Against Property documents required are:
-Identity proof – PAN card, Aadhaar card, Passport, Voter ID card, etc.
-Address proof – electricity bill, phone bill, rent agreement, etc.
-Income proof – salary slips, bank statements, IT returns, etc.
-Property-related documents – property papers, NOC from society or builder, etc.
-It is crucial to keep all the LAP documents required ready before applying for the same.
In conclusion, finding the lowest interest rate for Loan Against Property is not a daunting task if you know the right process. By following the above mentioned five pointers, you can easily find the lowest LAP rate of interest and apply for the same online through mymoneymantra.com. So, why wait? Check your eligibility, gather the required documents and apply for LAP today!