Loan against property(LAP) is a cheaper loan option as compared to other loan option in the market, whether it is a personal loan or a loan against security. Come to think of it, even on the face of it-you see your house as an investment. So, first-take a loan to buy a house and then take a loan against it a few years later to meet your other needs.
Mortgage Loan in Chennai (LAP) is also known as 'Home Equity Loans' and is basically a kind of loan against the security of one's property. LAP is designed to meet the financial needs of a person who already owns a house, which is free from any encumbrance (i.e. it is not given as security for any purpose)In other words it actually connotes - a loan given or disbursed against the mortgage of property. One can now take a loan against one's self occupied residential or commercial property, to expand his business, plan a dream wedding, or fund one's child's education and much more. However, one needs to give a declaration stating that these funds will not be used to carry out any illegal activities or for any speculative purpose. The loan is given as a certain percentage of the property's market value (usually around 40 per cent- 65 per cent). But the threshold amount is generally defined by most lending institutions. Usually, banks and other HFCs extend a loan against property (Mortgage Loan) as a security, for up to 50 per cent of the market-value of the property. However, the extent of the loan is also subject to your eligibility as per income norms which also are stricter than home loan norms.
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