At some point in time, we all come to a point where we require immediate cash to meet any urgent expenses like wedding, medical emergency, education or any other. And we do not know what to do next. In such cases, one thinks about availing a loan from a bank.
Majorly everything depends on your fund requirement. If the fund requirement is higher, you can opt for availing LAP or Loan Against Property. But most people refrain from availing LAP due to some misconceptions they carry with them whenever it comes to taking loans under LAP schemes. Below are some of the myths associated with Loan Against Property that is busted.
You can avail a loan for the full value of your property: No that’s not true. No lender will provide you with a loan for the full value of your property. Most lenders provide 60-70% loan of your property value. As you keep the property as collateral, the lender has to keep some margin for themselves.
You can only get loans on residential property: Property can be of any type be it a house, shop, office, land/plot along with the right papers of the property.
Mortgaged property cannot be used: Most borrowers when then think about mortgaging their property they fear that they cannot use their property. If a house is mortgaged they fear that they may have to leave their houses, but that’s not true, you can continue to stay in the house even after mortgaging. Similarly, if a shop/office is mortgaged you can continue to do your business fearlessly.
Higher interest rates: Borrowers have a myth that by availing LAP, they may have to pay a higher interest amount based on the value of their property or because of the rising property prices. But no that’s not true, it depends on the loan amount, your credit score, type of property, loan tenure etc.
Loan against Property is for everyone: LAP can be availed by everyone who is salaried, self employed and/or who has the repayment capacity and valid documents.
Loan against Property schemes: Based on the type of property borrower wishes to mortgage, Fedfina provides Loan Against Property schemes for all types of property like:
- Loan Against Residential Property
- Loan Against Commercial Property
- Commercial Property Purchase Loan
- Lease Rental Discounting
If your myths about LAP is finally busted and you wish to apply for LAP, visit Fedfina