A loan against property (LAP) is a simple way to arrange funds with the help of your existing property. LAP is a secured loan that banks, Non Banking Financial Companies (NBFC), or a housing finance company like DMI Housing Finance provide against the borrower’s residential or commercial property’s current market value. While availing Loan Against Property (LAP), one usually gets a bigger loan amount for a longer duration, as compared to a personal loan (PL) or business loan. That is because LAP is provided against the guarantee of your home or business property.

Factors to be considered when applying for LAP

One of the important things is to compare the interest rates offered by different loan providers. DMI Housing Finance provides attractive interest rates without any hidden charges. You can easily apply for a loan through the DMI customer portal. In this blog, we will talk about the method to avail LAP, its benefits, and eligibility.

Eligibility criteria to avail LAP

Any individual with a steady source of income, and who legally owns a property is eligible for LAP. Any salaried individual, a person with a permanent service in the government or a reputable company, or a self-employed businessperson or professional such as a lawyer, doctor, engineer, CA, etc. can also apply for a loan against property. The minimum age to apply for LAP is 18 years and the maximum ages are 70 (with income documents) and 90 (without income documents). DMI Housing Finance provides LAP to both salaried and non-salaried self-employed individuals.

Documents required for Loan Against Property

Whether you are a salaried person or a self-employed professional, you need to submit the following documents to avail a LAP.

• You will need to provide identity and age proof. The document could be any one of the following – Aadhaar Card, PAN card, Passport, Driving License, and Voter ID
• You will also be required to submit an address proof. It can be any one of the above or the latest electricity bill or any other utility bill (mobile/ landline telephone bill, water bill, gas bill, or a property tax receipt).
• In the case of salaried individuals, one needs to provide income proof. It includes 6 months’ bank statements, 3 months’ salary slips, and the latest Income Tax Returns (ITR) or Form 16.
• Self-employed professionals need to produce a one year bank statement or ITR of 3 years and/or any informal income document and proof of business existence.
• Borrowers from both categories should also submit property documents that include a title deed, proof of no encumbrance (inconvenience) on the property, and a previous chain of paperwork from previous owners of the property.

• After selecting your lender, you need to fill in the application form with complete information about your financial assets and liabilities, other personal and professional details, property details, and its valuation.

• Once the details are verified, lenders or loan providers check the borrower’s loan eligibility (the borrower’s repayment capacity) based on which the amount of loan is confirmed.

• The legal documents of the property from the borrower are kept with the lender as a security against the loan.

• Once the credit appraisal of the borrower is completed, the lender decides the final amount and sanctions the loan.

Stay connected and read our next blog to understand more about how much loan can be availed under LAP, its types, and what can be done with the amount.

You can give us a missed call on +919772027704 for all your loan against property (LAP) needs or apply for online LAP through the DMI customer portal. You can also easily track your loan application, check loan eligibility, manage your loan account, and access multiple other benefits using DMI Customer Portal from the comfort of your home. DMI Housing Finance has 37+ branches across India to name some Kalyan and Virar in Maharashtra, Pandav Nagar and Uttam Nagar in Delhi, Lucknow, Varanasi, and Prayagraj in Uttar Pradesh, Jaipur, and Kota in Rajashtan, Bhopal, and Indore in Madhya Pradesh, Karnal, and Sonipat in Haryana. You can find our nearest branch location to you by clicking here. You can also choose to write to us at customercare@dmihousingfinance.in or contact us on DMI Housing Finance customer support number – 1800 121 4214 for any queries you may have.