LAP LOANS

Key Features and Benefits

• Secured Loan: The loan is secured by property as collateral, which reduces the risk for the lender.
• Lower Interest Rates: Due to its secured nature, LAP generally offers significantly lower interest rates compared to unsecured options like personal or business loans.
• High Loan Amount: Borrowers can typically get a high loan amount, often up to 60-70% of the property's market value (Loan-to-Value or LTV ratio), depending on the lender and property type.
• Flexible and Long Repayment Tenure: Repayment periods can extend up to 15 to 20 years, making monthly EMIs more manageable and reducing the financial burden.
• No End-Use Restrictions: The funds can be used for a wide range of purposes, including business expansion, education, medical emergencies, home renovation, or debt consolidation, with no restrictions on the end use (except for speculative purposes).
• Retained Ownership: The borrower continues to own and use the property (live in it or rent it out) during the entire loan tenure, provided they make timely repayments. 

Common Uses of LAP Funds

• Business Needs: Expanding a business, managing working capital, purchasing equipment/machinery, or buying a new business.
• Education: Funding higher education in India or abroad.
• Medical Emergencies: Covering substantial medical bills or emergency healthcare costs.
• Debt Consolidation: Consolidating multiple high-interest debts (like credit card dues or personal loans) into a single, lower-interest loan.
• Major Life Events: Funding weddings, family vacations, or other significant personal expenses.
• Home Renovation/Investment: Renovating an existing home or investing in an additional property. 

Eligibility Criteria and Required DocumentsEligibility is based on the applicant's financial profile and the value and legal status of the property. 

• Applicant Profile: Indian citizen (salaried or self-employed), typically aged between 21 and 70 at the time of loan maturity, with a stable income and good credit score (700+).
• Property Requirements: The property (residential, commercial, industrial, or non-agricultural land plot) must have a clear title, no existing legal disputes, and be located in an approved area.
• Key Documents:
  • Identity and address proof (Aadhaar, Passport, Voter ID).
  • Income proof (Salary slips, bank statements, ITRs, P&L statements for self-employed).
  • Property documents (Title deed, sale deed, property tax receipts, approved building plan).