A Loan Against Property (LAP) is a secured loan that allows you to borrow funds by mortgaging your residential, commercial, or industrial property. Here’s why a LAP might be the right choice for you:

Key Features

• High Loan Amount: Depending on the value of your property, you can avail a substantial loan amount, typically up to 60-80% of the property's market value.
• Long Tenure: LAPs generally offer flexible repayment options with loan tenures ranging from 5 to 20 years, making it easier to manage monthly installments.
• Lower Interest Rates: Since LAP is a secured loan, the interest rates are generally lower than those of personal loans or credit cards.
• Multipurpose Usage: Funds obtained through LAP can be used for various purposes, including business expansion, education, wedding expenses, medical emergencies, or debt consolidation.
• Property Ownership: Even though your property is mortgaged, you retain ownership and can continue to use it as you normally would.
• Flexible Repayment Options: You can choose from various repayment options such as regular EMIs, bullet payments, or overdraft facilities, depending on the lender's offerings.

Benefits

• High Loan Eligibility: The higher the value of your property and your income, the greater the loan amount you can avail, making LAP ideal for high-value requirements.
• Lower EMIs: The extended tenure and lower interest rates make EMIs more affordable, reducing the strain on your monthly budget.
• No Restrictions on Usage: Unlike some other loans, LAP does not restrict the end-use of funds, giving you the flexibility to meet any personal or business financial needs.
• Quick Processing: With a clear property title and proper documentation, LAPs can be processed quickly, providing timely access to funds.
• Tax Benefits: Under certain conditions, interest paid on a loan against property may be eligible for tax deductions if the loan is used for business purposes.
• Retain Property Ownership: Despite being mortgaged, you retain the rights to your property, allowing continued usage and potential for future appreciation in value.
• Credit Score Improvement: Successfully repaying a LAP can positively impact your credit score, making you eligible for better financial products in the future.
• Safe and Secured: With property as collateral, LAP is a safer option compared to unsecured loans, both for the lender and the borrower, due to reduced default risks.

Why Choose Infinity Financial Hub for Your Loan Against Property?

At Infinity Financial Hub, we offer competitive interest rates, flexible repayment options, and a hassle-free application process. Our expert team is here to guide you through every step to ensure you get the most out of your property’s value.
Apply Now to leverage your property and meet your financial needs with confidence!

Age

• Applicants must be at least 21 years old at the time of loan application.
• The maximum age at the time of loan maturity should not exceed 65-70 years, depending on the specific terms of the loan.

Employment Type

• Salaried Individuals: Must have a stable employment history with a minimum of 2-3 years of work experience in the current job or profession.
• Self-Employed Individuals: Should have a stable business income with at least 3-5 years of continuous operation in the current business or profession.

Income Criteria

• Applicants must demonstrate a stable and sufficient monthly income to cover the loan EMIs comfortably, as evaluated by salary slips, bank statements, and income tax returns.
• A manageable debt-to-income ratio, generally not exceeding 50-60%, is required for loan approval.

Credit Score

• A good credit score, typically 650 and above, is essential for loan approval. Higher credit scores may result in better interest rates and loan terms.
• The applicant’s credit report is reviewed to check for any past loan defaults, late payments, or other credit issues.

Property Eligibility

• The property should be a residential, commercial, or industrial property owned by the applicant. It must be free from legal disputes and have a clear title.
• The property's market value will be assessed by the lender, and typically, loans are sanctioned for up to 60-80% of the property's appraised value.
• The property should be located within the approved geographical limits.

Co-Applicant Requirements

• Adding a co-applicant with a stable income and good credit history can increase the eligibility for a LAP. Co-applicants can include spouses, family members, or business partners.

Other Considerations

• Any existing loans or liabilities will be considered to assess the overall repayment capacity.
• Demonstrating consistent financial stability and a low level of existing debts enhances your chances of loan approval.

Residential Property

• Interest Rate: Typically ranges from 8.5% to 10.5% per annum, depending on the lender and applicant's credit profile.
• Processing Fee: Usually between 0.5% to 1% of the loan amount, subject to a minimum fee as specified by the lender.
• Prepayment Charges: Nil for individual borrowers opting for a floating interest rate. Fixed-rate loans may have prepayment penalties as per lender policy.
• Legal and Valuation Charges: Applicable as per the actual cost incurred for property valuation and legal verification of documents.

Commercial Property

• Interest Rate: Generally ranges from 9% to 12% per annum, based on the lender's assessment of the property's location, type, and applicant's financial profile.
• Processing Fee: Can range from 0.5% to 1.5% of the loan amount, with some lenders also applying a minimum fee.
• Prepayment Charges: May apply depending on the loan's interest rate type (fixed or floating) and the lender's specific policies.
• Legal and Valuation Charges: Charged based on the actual cost incurred for legal verification and professional valuation of the property.

Industrial Property

• Interest Rate: Typically ranges from 10% to 14% per annum, influenced by the property's industrial use, location, and the borrower's creditworthiness.
• Processing Fee: Usually between 0.75% to 2% of the loan amount, depending on the lender's terms and the complexity of the loan processing.
• Prepayment Charges: Applicable as per the lender's policy, often higher for fixed-rate loans compared to floating-rate loans.
• Legal and Valuation Charges: Fees are charged based on actual expenses for the legal review and valuation of industrial properties.

Agricultural Property

• Interest Rate: Typically ranges from 9% to 13% per annum, varying based on the property type, location, and applicant's financial background.
• Processing Fee: Can range from 0.5% to 1.5% of the loan amount, with some lenders offering specific rates for agricultural loans.
• Prepayment Charges: Often lower for agricultural loans, especially if the loan is taken by farmers, but this depends on the lender's policies.
• Legal and Valuation Charges: Fees apply as per the actual costs incurred for legal checks and property valuation, with some lenders providing concessions for agricultural properties.

Step 1: Application Submission

• Fill out the loan application form with your personal, employment, and property details.
• Submit required documents, including identity proof, address proof, income proof, property documents, and recent photographs.

Step 2: Document Verification

• The lender reviews and verifies the submitted documents to ensure all details are accurate and complete.
• Additional documents may be requested if needed to support the application.

Step 3: Property Evaluation

• The lender arranges for a professional evaluation of the property to determine its market value.
• This evaluation helps in deciding the maximum loan amount that can be sanctioned, typically up to 60-80% of the property's appraised value.

Step 4: Loan Approval

• Based on the document verification and property evaluation, the lender assesses your eligibility for the loan.
• If approved, the lender will issue a sanction letter outlining the loan amount, interest rate, tenure, and other terms and conditions.

Step 5: Agreement Signing

• Review the sanction letter carefully and discuss any clarifications or modifications with the lender.
• Once satisfied, sign the loan agreement and other necessary documents as per the lender’s requirements.

Step 6: Disbursement of Loan

• After the agreement is signed, the lender initiates the loan disbursement process.
• The loan amount is credited to your bank account or as specified in the agreement, typically within a few days.

Step 7: Repayment

• Begin repaying the loan through Equated Monthly Installments (EMIs) as per the agreed schedule.
• Ensure timely payments to avoid penalties and maintain a good credit score.

Check Your Credit Score

• Review your credit score before applying for a mortgage loan, as it plays a crucial role in determining your eligibility and interest rate.
• Higher credit scores typically result in better loan terms and lower interest rates. Aim for a credit score of 750 or above for the best offers.
• If needed, take steps to improve your credit score, such as paying off debts and correcting any errors on your credit report.

Compare Interest Rates

• Research and compare interest rates from multiple lenders, including banks, non-banking financial companies (NBFCs), and online lenders.
• Consider both fixed and floating interest rates to determine which option aligns best with your financial goals and market conditions.
• Negotiate with lenders for the best possible interest rate based on your credit score and financial profile.

Evaluate Fees and Charges

• Look beyond the interest rate and consider all associated fees and charges, such as processing fees, legal fees, and prepayment penalties.
• Request a detailed breakdown of all costs from each lender to make an informed comparison and avoid unexpected expenses.
• Some lenders may offer discounted or waived fees for a limited time, so inquire about any promotional offers.

Choose the Right Loan Tenure

• Select a loan tenure that balances affordable EMIs with total interest costs. Longer tenures may lower EMIs but increase overall interest paid.
• Consider your long-term financial plans and repayment capacity when deciding on the loan tenure.
• Some lenders offer flexible repayment options that allow you to adjust the tenure based on changes in your financial situation.

Check for Prepayment Options

• Opt for a mortgage loan that allows prepayment or foreclosure without hefty penalties, enabling you to save on interest costs if you pay off the loan early.
• Review the lender’s prepayment policy carefully, especially for fixed-rate loans, as these may have stricter conditions.
• Making periodic prepayments can significantly reduce your loan tenure and overall interest burden.

Assess the Lender’s Reputation

• Choose a reputable lender with a strong track record of customer service, transparency, and quick processing times.
• Read reviews and testimonials from other borrowers to understand their experiences and satisfaction with the lender.
• Consider the lender's support and flexibility in dealing with any potential financial difficulties you may encounter during the loan tenure.

Understand the Loan Terms and Conditions

• Carefully read and understand the loan agreement, including the fine print related to interest rate changes, penalties, and other conditions.
• If you have any questions or concerns, seek clarification from the lender before signing the agreement.
• Being fully aware of the terms and conditions helps avoid misunderstandings and ensures a smoother borrowing experience.

Loan Against Residential Property

• This type of loan is secured against a residential property, such as a house or apartment.
• Suitable for individuals looking to leverage the value of their home for personal or business financial needs.
• Typically offers lower interest rates due to the lower risk associated with residential properties.

Loan Against Commercial Property

• This loan is taken against a commercial property, like an office building, shop, or warehouse.
• It is ideal for business owners who want to raise capital for business expansion or other operational needs.
• Interest rates may be slightly higher than those for residential properties, reflecting the different risk profile.

Loan Against Industrial Property

• This type of loan is secured against an industrial property, such as a factory or manufacturing unit.
• Best suited for industrialists and manufacturers who need funds for upgrading machinery, expanding operations, or other business purposes.
• Interest rates and terms can vary significantly depending on the property type, location, and lender policies.

Loan Against Agricultural Land

• Offered against agricultural land, this loan is typically used for purposes related to farming or agricultural activities.
• May come with specific conditions on usage, reflecting the nature of agricultural financing.
• Interest rates and loan-to-value ratios may differ based on the agricultural property type and intended use of the funds.

Loan Against Leasehold Property

• This loan is taken against a leasehold property, where the property is leased for a long duration but not owned outright.
• Suitable for individuals or businesses holding leasehold rights who need funds but do not own the property fully.
• The loan terms depend on the remaining lease period and the property's perceived value and potential income generation.

Identity Proof

• PAN Card
• Aadhaar Card
• Voter ID
• Passport
• Driving Licence

Address Proof

• Registered Rent Agreement
• Aadhaar Card
• Driving Licence
• Lease Agreement
• Passport
• Latest Gas/Electricity Bill

Income/Financial Documents

• Salary slips for the last 6 months for salaried employees. Additionally, IT returns for the previous 3 years along with Form 16.
• IT returns for the past 3 years for self-employed persons (some banks accept 2 years IT returns as well).
• Bank account statement for the past 1 year where the salary is credited (for salaried individuals).
• Profit and Loss statement and Balance Sheet for the last 2 years for self-employed persons.
• Sales Tax and GST registration certificates, if applicable.
• Partnership deed in case of partnership firms (if the applicant is one of the partners or the firm itself).
• Certificate of Incorporation for limited companies (if the applicant is one of the directors or the company itself).

Property Documents

• Copies of all property documents that establish the chain of ownership for the past 30 years.
• Encumbrance certificate for 30 years.
• Property tax paid receipt.

Other Documents

• Loan application form
• Processing fee cheque

Prepayment of a loan against property is the process of paying off a part of your outstanding loan amount before the scheduled repayment date. This can be done to reduce the overall interest burden and shorten the loan tenure. Prepayment can be partial, where you pay a part of the principal amount, or full, where you clear the entire outstanding amount.

Benefits of Prepayment:

• Interest Savings: By reducing the principal amount, you can save on interest payments over the loan term.
• Shorter Loan Tenure: Prepayment can help you reduce the tenure of the loan, allowing you to be debt-free sooner.
• Improved Credit Score: Early repayment can positively impact your credit score, demonstrating financial responsibility.

Documents Required for Prepayment:

• Prepayment Request Form
• Identity Proof (e.g., PAN Card, Aadhaar Card)
• Proof of Income (if required)
• Original Loan Agreement
• Recent Loan Account Statement

Steps to Make a Prepayment:

• Contact your lender and request the prepayment amount and procedure.
• Submit the required documents and complete the prepayment request form.
• Make the prepayment amount through the prescribed mode (e.g., bank transfer, cheque).
• Obtain a revised loan statement reflecting the prepayment and updated balance.

It is advisable to check with your lender regarding any prepayment penalties or conditions that may apply. Planning and understanding these aspects can help you manage your finances more effectively and make informed decisions about prepaying your loan against property.

Applying for a loan against property with Infinity Financial Hub offers numerous advantages that can make your financial journey smoother and more efficient. Here’s why you should consider choosing us:

1. Competitive Interest Rates

At Infinity Financial Hub, we offer some of the most competitive interest rates in the market, helping you save significantly on your loan over time.

2. Flexible Loan Tenure

We provide flexible loan tenures, allowing you to choose a repayment period that best fits your financial situation and goals.

3. Quick and Hassle-Free Process

Our streamlined application process ensures quick approval and disbursal of your loan, minimizing any delays and making it easier for you to access the funds you need.

4. Customized Solutions

We understand that each client’s needs are unique. Our team works closely with you to tailor a loan solution that aligns with your specific requirements and financial objectives.

5. Transparent Procedures

Infinity Financial Hub prides itself on transparency. We provide clear information about all fees, charges, and terms associated with your loan, ensuring you make well-informed decisions.

6. Expert Guidance

Our experienced financial advisors are here to guide you through every step of the loan application process, from initial consultation to loan disbursal and beyond.

7. No Hidden Charges

We believe in honest and straightforward dealings. You can trust that there are no hidden charges or surprises when you work with us.

8. Efficient Customer Support

Our dedicated customer support team is available to assist you with any queries or concerns, ensuring a smooth and pleasant experience throughout your loan tenure.

Choosing Infinity Financial Hub for your loan against property means opting for reliability, efficiency, and personalized service. Let us help you achieve your financial goals with ease and confidence.

A mortgage loan is a type of loan where the borrower pledges their property as collateral to secure the loan. The property serves as security for the lender, ensuring that if the borrower fails to repay the loan, the lender can claim the property through foreclosure. Mortgage loans are commonly used to purchase real estate or for refinancing existing properties.

To apply for a mortgage loan, follow these steps:

• Check your credit score and financial health.
• Determine the amount you need and your repayment capacity.
• Gather necessary documents such as proof of identity, income, property details, and credit history.
• Research and choose a lender that offers suitable mortgage products.
• Submit your loan application along with the required documents.
• Await the lender’s approval, and if approved, review and sign the loan agreement.
• Complete the property appraisal and other formalities as required.

A reverse mortgage loan allows homeowners, typically seniors, to convert a portion of their home equity into cash. Unlike traditional mortgages, where you make monthly payments to the lender, with a reverse mortgage, the lender makes payments to you. The loan is repaid when the borrower sells the home, moves out, or passes away.

The maximum loan tenure available under a Loan Against Property (LAP) typically ranges from 15 to 20 years, depending on the lender’s policies and the borrower’s age. Some lenders may offer tenures up to 25 years. The tenure may also be influenced by the borrower’s repayment capacity and the type of property used as collateral.

The amount of loan you can get against property typically ranges from 40% to 75% of the property's market value, depending on factors such as the type of property, the lender’s policies, and your repayment capacity. The exact loan amount will be determined based on the property’s appraisal value and your financial profile.

Yes, Non-Resident Indians (NRIs) can avail loans against property in India. However, the application process may be slightly different and require additional documentation. NRIs need to provide proof of income, valid passport, visa, and other relevant documents as required by the lender.

A home loan is specifically taken for purchasing or constructing a residential property, whereas a Loan Against Property (LAP) is a secured loan where the borrower pledges an existing property as collateral to obtain funds. Home loans are typically used for buying or building a new property, while LAP can be used for a variety of purposes including business expansion, medical expenses, or personal needs.

A good CIBIL score is crucial for securing a Loan Against Property. Typically, a CIBIL score of 700 or above is considered favorable. A higher score increases your chances of approval and may help you secure better terms and interest rates. However, specific requirements may vary between lenders.

Obtaining a loan against property without income proof can be challenging, as most lenders require proof of income to assess your repayment capacity. However, you may still be eligible if you have strong property value, a good credit score, and a stable financial background. Some lenders may consider alternative documents or provide loans based on the property’s valuation and other financial aspects.

The process of obtaining a mortgage loan involves the following steps:

• Assess your financial situation and determine the loan amount needed.
• Gather necessary documents including identity proof, income proof, property details, and credit history.
• Choose a lender and submit a loan application along with the required documents.
• The lender will conduct a property appraisal and verify your documents.
• Receive the loan offer and review the terms and conditions.
• Sign the loan agreement and complete any additional formalities.
• The lender disburses the loan amount, which you will then repay according to the agreed schedule.

Getting a mortgage loan with bad credit can be challenging, but it is not impossible. Lenders may offer loans with higher interest rates or stricter terms for borrowers with low credit scores. Improving your credit score, providing a larger down payment, or demonstrating a strong repayment capacity may increase your chances of approval. It’s also helpful to explore lenders who specialize in loans for individuals with less-than-perfect credit.