Ensuring proper financial backing in today’s life is very significant for all of us. There are numerous means to avail such finance. However, you must weigh the pros and cons before selecting the loan suited for your financial needs. 

What is a loan against property (LAP)?

A loan against property (LAP) is a secured loan that can help you gather funds in emergencies. Moreover, various advantages are associated with such loans, including interest rates, tenures, and tax benefits. So, let’s get you started on your complete guide to such loans. You can Apply for Loan Against Property at the lowest interest rates.

What are the Eligibility Criteria Required for Availing LAP? 

To be eligible to avail of LAP, you can be a professional or self-employed person. However, your age must be less than 60 years in case you are a salaried person. For a self-employed person, the limit is 65 years.  

What are the Documents Required for Availing LAP? 

After you have checked the loan against property eligibility, it is imperative for you to have proper documentation while availing of loans. It ensures the smooth and timely transfer of the loan amount. 

Here’s a list of all the documents you need for availing of LAP: 

Identity Proof

You can submit this in the form of a Passport, Driving license, Aadhaar card, or PAN card. 

Residence Proof

You can submit this in the form of utility bills for your property. It may include electricity or telephone bills. 

Form 16

You must submit income Tax Returns for the preceding three years with relevant financial statements. 

Salary Slips

In case you are a salaried person, You must submit salary slips for the preceding three months. 

What are the Benefits of Availing LAP? 

The advantages of availing such loans are listed below. 

Repayment Tenures

The period for repayment of such loans is longer in comparison to other types. It allows you to take large sums of money and repay it at a suitable pace. 

Tax Advantages 

you can avail of the deduction on taking such loans under section 37 of the Income Tax Act. However, you can only avail of the deduction if you have utilized the loan for business purposes. 

Rate of Interest

Financial institutions give such loans at lower interest rates. In turn, this will help reduce the total amount to be paid at the end of the repayment period. 

Utilization for Multiple Purposes

Such loans can be utilized either for business or personal use. This flexibility enables you to take loans as per your requirements. 

Easy Availability

You can easily avail of such loans if you own property. This easy availability allows you to utilize your property for business or personal purposes efficiently.

Documents Required

Salaried Employees	Self Employed/Professionals
Duly filled Application Form with Photograph	Duly filled Application Form with Photograph
Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)	Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)	Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)
Education Qualifications – Latest Degree	Education Qualifications – Latest Degree (for professionals)
Latest Salary-slips for 3 months	Certificate & Proof of business existence along with Business Profile
Form 16 for last 2 years	Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant
Last 6 months Bank Statements(salary account)	Last 12 months Bank Account Statements (self & business)
Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’	Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’
Photocopy of Title Documents of the Property, Approved Plan	Photocopy of Title Documents of the Property, Approved Plan etc.

Conclusion

A good credit score and history of timely repayment of loans are key to availing of loans with no difficulty. Also, the background or credit rating of the financial institution you are taking a loan from must be kept in mind. LAP has been becoming popular these days and you can avail of loans in case of all kinds of requirements.