The auspicious festival of Diwali is the harbinger of positivity and happiness. As many people consider Diwali as the beginning of a new year, there are various preparations to be done. You might purchase new furniture and decor to renovate your home, or to shop for new clothes. As per festival traditions, you may also want to buy gold and silver as good luck. Keeping these expenses in mind, you may need capital to finance the purchases.
Ideally, savings must not be used for emergencies; consider loans as an option to finance your many festival expenses. However, availing several lines of credit for different goals could unnecessarily burden you with multiple debts.
A Loan Against Property (LAP) is a kind of loan where lenders offer funds against your commercial or residential property. Even if your personal loan didn’t come through, your LAP is likely to be approved as your property is mortgaged as security against their money.
Let’s look into loan against property features –
Higher Value Loan
Whether you wish to buy a new car or get your home painted, a loan against property can come to your aid. With a facility of high-value loan you could easily fund your big purchases like an SUV car or select the choicest paints to beautify your home. If you are a salaried person, you can avail a loan against property in India up to an amount of Rs. 1 crore. For a self-employed individual, the loan limit goes up to Rs. 3.5 crore.
Minimum Documentation with Simpler Process
As the LAP is a secured loan, it can get approved with minimal documentation.. Moreover, the loan approval process is more straightforward and faster, you can receive a quick disbursal of the loan amount within a few hours.
Once you submit the loan against property documents, the loan is approved within 72 hours.
To avail a loan, you would need to submit the following documents as a salaried person –
−Latest salary slips
−Bank account statements of the previous 3 months
−PAN Card/Aadhaar Card
−Address proof
−Copy of the property documents to be mortgaged
−Income Tax Returns
As a self-employed individual, these are the documents required for a LAP application –
−Bank account statements of the previous 6 months
−PAN Card/Aadhaar Card
−Address proof
−Copy of the property documents to be mortgaged
Eligibility
The loan against property eligibility varies according to lenders’ policies. Apart from your credit score, there are some specific eligibility criteria, which the lender considers while approving your loan. These include the city you live in, your earnings, age or your career status. Lenders might also look into your debt, savings and monthly income before approving the loan.
For a salaried employee, the eligibility to avail a LAP is –
●You should be a resident of India
●Your age should be between 33 to 58
●You should be employed in an MNC, a private company or the public sector.
●You should own a property in specific cities determined by the lender
For a self-employed individual –
●You should be a resident of India
●Your age should be between 25 to 70 years
●You should be a self-employed individual with a regular source of income
●You should own a property in specific cities determined by the lender
Additional Read: What Is The Eligibility Criteria For Loan Against Property?
Flexible and Longer Tenor
Loan against property tenor is flexible, which allows you to repay the loan amount conveniently. The tenor of a mortgage loan varies between 15-20 years depending upon the lender. A longer tenor helps you comfortably repay the monthly EMI in smaller amounts.One can avail an 18-year tenor as a self-employed individual. Alternatively, for a salaried person, the maximum tenor you can avail is 20 years.
To Sum Up
Loan against property debt consolidation could be a convenient way to pay off all your debts and enjoy the festival of lights without worrying about your finances.
Why not use a single loan to consolidate all your other loans and debts? A loan against property could help you enjoy your Diwali by relieving you of multiple debts.
The facility of a long tenor with attractive interest rates offered will help you spread happiness among your loved ones along with managing your debts.