Things to Remember Before Taking a LAP

• High loan amount: 

• Low interest rates: 

• Multipurpose loan: 

• Longer tenure: 

• High-income myth:

• Mortgage property can be used: 

• No tax benefits: 

• Cannot sell mortgaged property: 

Loan against property eligibility: 
 
To obtain this loan, you need to follow a simple loan against property procedure. To begin with, you must meet the qualifying requirements listed below.
 

• You should be an Indian citizen with a minimum age of 25 years and maximum age of 75 years. 
• You should be self-employed or a business owner who has a regular source of income.
• You should have been in your existing business for at least three years.

 
Documents required for LAP: 
 

• Mandatory documents: Duly filled application form along with the PAN Card.
• Identity Proof: Driving Licence/ Photo ID issued by GOI/ Passport/ Voter ID Card/ Aadhaar Card
• Address Proof: Voter ID Card/ Utility Bill/ Lease or Rent Agreement/ Aadhaar Card/ Registry Copy/ Property Tax Receipt/ Driving Licence 
• Business Existence Proof: VAT/ Excise Tax/ Sales Tax/ Service Tax Registration along with a copy of partnership deed, registration certificate issued by the RBI or SEBI, trade licence, certificate of practice.
• Signature Proof: PAN Card/ Passport/ Banker's Verification   
• Income Proof: Income Tax Returns (ITR) for the last three years, last six months’ bank account statement, or business continuity proof for the last three years.
• Property related documents such as registration papers, property insurance papers etc. 

 
Also Read: Benefits of taking a Loan Against Property

To Conclude: 
 
Taking a LAP is a major decision with long-term financial consequences. As such, it's critical to be familiar with all of its facets and obtain a loan that is completely aligned with the borrower's financial goals. Now that you know what is loan against property, what are loan against property eligibility criteria and the documents required for getting a LAP, you can easily make an informed decision.