Lap Loans in Bangalore

aster inner background

Loan against Property (LAP)

Loan against Property or LAP refers to a secured loan category. It is almost like a home loan where the borrower will provide guarantee by using his property as security, but the right of ownership of the property is still with the borrower. If the borrower fails to repay the loan amount, the property can always be sold off to pay off the debt.

Banks offer LAP loan ranging from Rs. 2 lakhs to Rs. 100 lakhs. It depends on your income, property valuation and you capacity to repay. Depending on the valuation, banks offer anywhere around 80%-100% amount as LAP loans. As far as loan tenure is concerned, 15 years is maximum what banks offer.

Be prepared to provide security, collateral or guarantors in order to obtain a Loan Against Property, not to mention a long verification process.
Properties that are on lease or that are based on power of attorney are not accepted by most banks. 60 years is the maximum age limit for eligibility.
Loan Against Property features Fixed or Floating interest rates. Depending on your choice, you can shift from Fixed to Floating interest rates and vice versa once every year.
0.05% to 3% of the loan amount is charged as processing and is payable upfront.
Anytime after 180 days of availing the loan, you can also prepay the entire loan. Pre-payment charges will be levied accordingly. If you intend to do so, please ask for the pre-payment amount to be waived or a reduction in the penalty charges.
You also have the option to increase or enhance your loan against property eligibility. For that you need to show income of atleast three persons, most preferably a family member or a business partner.

Additional Points To Remember When Considering a Loan Against Property:

Before finalizing compare LAP offers from 4-5 banks and fix the best for you.
Give special attention to the tenure. The EMI may be less for longer tenures, but the total interest outflow will be higher comparing to the short tenure.
If possible, consider pre-payment options. All banks charge 2% – 3% of the loan in case you decide to pre-pay the outstanding amount.
Default in payments results in penalties. It can also adversely affect your credit history and profile. Make sure to make your payments on time else will cost you in penalties.
Double check the documents before signing. Never sign a blank document.

Loan Against Property Eligibility Criteria

Some of the Elgibility Criteria when applying for a Loan Against Property Are As Follows.

  • Age (min. 21 years)
  • Property Valuation
  • Existing Liabilities (if any)
  • Current Work Experience
  • Financial Documents
  • Number of Dependants

Loan Against Property – For a Residential Property:

-Self Occupied – 65% of Property Value
-Vacant – 55% of Property Value
-Rented – 55% of Property Value

Loan Against Property – For a Commercial Property:

-Self Occupied – 50% of Property Value
-Vacant – 40% of Property Value
-Rented – 40% of Property Value
-This varies from Bank to Bank by 5 – 10% of the above mentioned percentages.
In order to calculate how much you would be estimated to pay, most banks use a formula which is given below.

Loan Against Property for Salaried Individuals:

-{(NTH – Obligation) * 60%} / EMI per Lac.

Loan Against Property for Self Employed Individuals:

-{(NTH – Obligation) * 65%} / EMI per Lac
Whichever is lower from the value of the property or your income- that loan amount will be given to you.

Other Eligibility Criteria Revolves Around the Maximum Age of The Person Applying For The Loan

-For Salaried employees – 60 Years. -For Self-Employed – 70 Years.

Personal Loan Partners

  • HDFC Bank
    Based in Mumbai, Maharashtra, HDFC Bank Limited is an Indian financial services company. Incorporated in August 1994, HDFC Bank is the fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012.
  • ICICI Bank
    The second largest bank in India by assets and third by market capitalisation, ICICI Bank Limited is a multinational financial services company which has headquarters in Mumbai, India.
  • AXIS Bank
    Axis Bank Limited is an Indian financial services corporation headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after the Government of India allowed new private banks to be established.
  • IDBI Bank
    IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorised IDBI as an “other public sector bank”
  • Kotak Mahindra Bank
    Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company.
    Banks and financial institutions including:
  • Bajaj Finserve
  • Cholamandalam
  • Citibank
  • DCB (Development Credit Bank)
  • Deutsche Bank
  • DHFL
  • First Blue
  • Fulletron
  • HDB Financial Services
  • HSBC
  • IndiaBulls Financial Services Pvt Ltd
  • Indusind Bank
  • ING Vysa Bank Ltd
  • Karvy Financial Services Pvt Ltd
  • Kotak Mahindra Bank Ltd
  • Magma Finance
  • Reliance Commercial Finance
  • Religare
  • Standard Chartered Bank
  • Shriram City
  • Tata Capital

Balance Transfer Your Loan

When was the last time you checked your home loan statement?
Has your loan tenure increased since your signed up?
Are you paying more than 10.5% interest on your home loan?
Save Money With A Home Loan Balance Transfer!
Many people don’t know that banks doesn’t increase Home Loan EMIs but they increase the tenure of the home loan when the floating interest rate increases. If you are paying 11-12% interest rate on your home loan then we can help you save a lot of money.

Personal Loan Balance Transfer

Using Personal Loan Balance Transfers high value personal loans, loan against property, and multiple loans from different banks and credit cards can be consolidated into one high value loan. Due to floating interest rates being the norm for high value loans, customers may still retain their original EMIs but might end up with a much longer loan tenure. This is an undesirable situation for a loan taker, but a position that many find themselves in.
It can help customers better manage their various loan products, possibly with a more competitive interest rate.

Top Up Your Home Loan & Personal Loan

Customers can apply for a Top-Up on their Home Loans & Personal Loans using the Balance Transfer facility as and when they need to meet their personal requirements (other than for speculative purposes) or to possibly consolidate two loans from different banks to a single larger loan from a different banking provider, with a more competitive interest rate. The benefit of the customers is that, they can get some additional funds against the security of property. Customers opt for top up loans for many reasons, some of which are mentioned below.

  • Furnish your home
  • Buy consumer durables
  • Child’s education expenses
  • Daughter’s marriage
  • Family holiday
  • Buy a new vehicle

Eligibility For Balance Transfer

Stringent eligibility is in place for both home loan balance transfers and personal loan balance transfers have requirements that one is typically familiar with while taking a home loan or a personal loan.

Documentation for Balance Transfer

Applicants will need to provide a set of documents to approve the home loan balance transfer. It is as similar to the documentation requirements for Home Loans and personal loans.

More Information on Balance Transfer

The primary use for Home Loan & Personal Loan Balance Transfers are high value loans, where rising tenures and expensive EMIs become too troublesome, due to flux in market conditions. A Star Solutions works with over 35 preferred banks. A comprehensive list of banks A Star Solutions works with are Axis Bank, Bajaj Finserve, Cholamandalam, Citibank, DCB, Deutsche Bank, DHFL, ECL Finance, EDELWEISS, First Blue, Fulletron, Capital First, HDB Financial Services, HDFC BANK LTD, HDFC LTD, HSBC, ICICI Bank Ltd, IndiaBulls Financial Services Pvt Ltd, Indiainfoline, Indusind Bank, ING Vysa Bank Ltd, Investment financial Services Pvt Ltd, Karvy Financial Services Pvt Ltd, Kotak Mahindra Bank Ltd, Magma Finance, Money line, Punjab and National Bank, Reliance, Religare, Standard Chartered Bank, Shriram City, Tata Capital, Electronica Finance Limited, Money Matters Finance Ltd to name a few.

A Star Solutions offers home loan and general purpose loan balance transfers from a list of highly prolific banks that it has worked with for over 20 years! We give you the most competitive rates and special offers that you will nowhere else.

Test Data

Copyright © 2015 All rights reserved | Privacy Policy Sitemap Login