Loan Against Property

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What is Loan Against Property


A loan, given against a certain percentage of the property’s current market value is called as a Loan given against property. An individual can take a loan against property by mortgaging his personal or commercial properties. These properties must be under the individual’s name. Since there is collateral kept for the loan, this is called as a secured loan. Chennai is one of the largest growing economies in India. They are called as the “Detroit of India”. This is because of their influence in the automobile industry. Here people can avail a Loan Against Property in Chennai by mortgaging their property. The Bank/NBFC will analyze the property and will evaluate using certain parameters. Once the analysis is done, they will derive the current market value of the property. The loan amount will be around 40-60%* of the current market value as per the Bank/NBFC. One can get a loan against property in Chennai by keeping their property as mortgage with the lender.

For what purposes you can use Loan Against Property funds?


Loan Against Property in Chennai is taken by an individual to fulfill personal and professional obligations. An individual is not under any obligation to mention the reason that he/she needs the loan for. LAP in Chennai can also be called as a multipurpose loan because once you keep the property as mortgage; you can use the funds for a variety of expenses.

What are the differences between Loan Against Property and Personal Loan?


A personal loan in Chennai and a Loan Against Property in Chennai are two very different products. Since they have many similarities, people assume that these loans are one and the same. Hence we have come up with the list of differences so as to clear out the confusion in the minds of the customers.

1. LAP in Chennai is a secured loan. Here you need to keep collateral with the Bank/NBFC either in the form of commercial or residential property. A Personal Loan in Chennai is an unsecured loan and you don’t need to keep any collateral to get a loan from the Bank/NBFC.

2. LAP in Chennai is secured in nature and hence the rate of interest is lower than personal loans in Chennai. This leads to the individual repaying lower EMI’s to the Bank/NBFC. A personal loan in Chennai is unsecured in nature and hence the rate of interest is always higher. This leads to the individual repaying higher EMI’s to the Bank/NBFC.

3. LAP in Chennai is approved by the Banks and NBFC after analyzing the applicant’s financial history and after evaluating the current market price of the property. The tenure for a Loan against property in Chennai goes up to 15 years*. A personal loan in Chennai is only approved by the Banks and NBFC after analyzing the applicant’s financial history. The tenure for a personal loan in Chennai is between 5-7 years*.

What are the features of Loan Against Property?


  • Loan against property in Chennai is a type of secured loan. A borrower has to mortgage the residential or commercial property for loan against property.
  • This is a long tenure loan as the repayment period is as long as 15 years*. Banks and NBFCs in Chennai offer higher loan amount for longer tenure with enchanting interest rates as compared to other loan plans.
  • The process of obtaining Loan Against Property in Chennai is very quick and hassle free. Some banks approve the loan as quick as within three days*.
  • You can use your collateral property while repaying the Loan Against Property in Chennai, unlike gold where the gold ornaments remain with the banks or NBFCs and you don’t get them back until the loan is paid in full.
  • Borrower can avail loans from Rs. 5 lakh onwards against property, if they apply for Loan Against Property in Chennai. The minimum amount Rs. 10-15 lakh*.
  • You can get Loan Against Property in chennai by keeping residential as well as commercial properties as mortgage.
  • The interest rates on this loan are decided considering various aspects of applicant’s profile. Like applicant’s monthly salary, income details of self employees or businessmen, amount taken as loan etc. As this is a type of secured loan, banks and NBFC’s offer lower rate of interest for Loan Against Property in Chennai.
  • Mortgage loans prove to be the best way to debt consolidation. That mean you can pay of your multiple debts by bringing them under a singular debt in Chennai.
  • If the property is owned by partners or directors of a company, it can be taken in the name of that firm.

What are the Eligibility Criteria to avail a Loan Against Property?


To avail a Loan Against Property in Chennai, an individual will need to fulfill all the eligibility criteria set by the lender. Only after the customer is deemed as eligible can he/she get the loan. The criteria usually include certain general pointers for all the lenders;

    The criteria include

  • The individual must be a citizen of India
  • Individual’s professional stability and Income history.
  • Good credit history
  • Property must be under the applicant’s name.
  • Loan can be taken as co-applicants if the property is registered under multiple names.

The eligibly criteria for loan against property also changes based on applicant's profession. The details of the same are given below:

  • Salaried Applicant
  • The applicant should be a permanent employee with the government or a reputed company.
  • The applicant should be an employee with the existing company or government for minimum 3 months.
  • The minimum age to avail Loan Against Property transfer without top up for salaried applicant is around 24 to 25 years.
  • The applicant should currently be employed with existing organization.
  • The applicant should also have a good credit score.
  • Professional Applicant/ Self-Employed Applicant
  • This category is further divided into two:

    Self-Employed Professional: Doctor, architect, chartered accountant, etc.

    Self-Employed Non-Professional: Trader, commission agent, contractor etc.
  • The minimum age to avail LAP transfer without top up for professional applicant is 25 years and the maximum age has to be 65 years.
  • The applicant should be involved in his/her business for 3 years.
  • The applicant should be filing income tax returns regularly.
  • The property which is being mortgaged also has to be eligible to be kept as collateral in the bank or NBFCs. The property eligibility criteria are given below:
  • The property which will be kept as collateral should not be involved in any legal tangles.
  • The property should have clear titles registered in the name of the applicant.
  • The market value of the given property should be higher as the loan amount you'll get will totally depend on the current value of property.
  • The property which will be kept as collateral should not be involved in any legal matters.

What are the Documents Required to avail a Loan Against Property?


To avail a loan against property, there is a list of documents needed. This list changes as per the profession of the applicant. There is a different list for a salaried applicant and also for a self-employed professional. The process of getting this loan gets easier when you know what kind of documents are needed to be submitted. There are many documents needed as per different banks but there are few which are similar in every bank/NBFC. Hence we have created a generic list of documents you would need;

  • Documents Required for Salaried Applicant:
  • Neatly signed and filled loan against property application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • Salary slips of last 3 months from application date.
  • Form-16 issued by current employer.
  • Bank statements of last 6 months from application date.
  • Copy of details of all existing loans.
  • A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
  • Property papers with OC and CC.
  • Documents Required for Self-Employed Businesspersons:
  • Neatly signed and filled loan against property application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • IT Returns of the three years preceding the one in which loan is applied for.
  • Copy of details of all existing loans.
  • Property papers with OC and CC.
  • Documents required for self-employed professionals:
  • Neatly signed and filled loan against property application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Proof of educational qualification which includes certificates, degrees, diplomas, and other academic credentials.
  • Business proof (registration of business)
  • Copy of challans proving that Advance Income Tax has been paid.
  • Copy of details of all existing loans.
  • Bank statements of last 6 months from application date.
  • Property papers with OC and CC.

Why Choose Ruloans To Apply For Loan Against Property?


Ruloans has been in the loan distribution business since a decade at least. Our motto is to help our customers with the best services that are “much more than money”. We help our customers get the best loans and the offers from over 50 plus partnered banks and NBFCs. Using our highly proficient loan calculator which has been developed by our internal team, a customer can always get the best deals possible.

Hassle free process

Availing a LAP in Chennai is a lengthy process. There are a lot of documents needed of the individual and the property. Hence to make sure that the customer can smoothly finish the process, we have made our user interface very user friendly. This is to ensure that they have a hassle free experience.

Benefits of applying with us

With so many lenders in the market, it is a task and a challenge to find out which Bank/NBFC gives the best offer. The main benefit of applying with us is that you can get quotes from over 50 plus lenders in the market and choose the best out of them.

Compare your loan options

As mentioned above, you can see all the deals and rates of different lenders on our portal. Using the calculator, you can also derive what is the best rate for you and accordingly choose that lender.

Free expert guidance and advice

Gaining knowledge all over the years has helped us with skills that we use to give our customers the best service. These services are provided to all our customers free of cost.

Privacy policy

Data safety is one of our most important goals. We at Ruloans ensure that privacy of the customer’s data is maintained throughout the entire process. Only we and the lender of the customer’s choice have access to the data.

How to Apply For a Loan Against Property on Ruloans?


  • How to Apply For a LAP Transfer without Top Up on Ruloans?
  • Step 1:Go to the ‘LAP IN Chennai’ page on our website and click on ‘Check Your Eligibility’ box.
  • Step 2:Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
  • Step 3:Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
  • Step 4:From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
  • Step 5:Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

Frequently Ask Questions


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