6 Brilliant Ways of Taking LAP and Fully Utilising Your Property

Now let us move on to know how you can put your property to the optimum use and reap six wonderful benefits of an emergency loan against house property.

1. You can Avail of the Balance Transfer Feature

Has the current pandemic compelled you to approach financial institutions for a loan? Well, take a LAP. Yes, you heard us right. Most financial institutions add value to loans taken against property by offering the “Balance Transfer” feature. The Balance Transfer facility helps you transfer the outstanding principal on your existing LAP at a relatively lower interest rate based on your credit history. This helps in reducing your EMIs greatly. You can save more on interest costs and mitigate your debt burden. Furthermore, multiple LAPs can be consolidated, and you can avail a higher top-up loan against house property over and above the balance transferred.

Also Read: 8 Reasons Why LAP is a Better Choice to Fund Your Kid’s Education
 

2. Get a Long Repayment Tenure

You can avail a LAP repayment tenure up to 20 years. If you are currently facing a cash crunch, these 20 years are sufficient for you to repay all outstanding debts and save up. The long repayment tenure also helps you bring down your EMI, thus easing your burden and helping you stay within your monthly budget.
 

3. Avail a Short Disbursement Tenure

LAP can be used as an instant or emergency fund. You can get LAP approved and disbursed by presenting your KYC and other basic documents with your preferred financial institution. Support your lender with all required documents to facilitate errorless application process and enable disbursement within a few working days.
 

4. Retain Continuous Ownership of Property

Once the owner,  always the owner.  Avail LAP if you want to gain doubly. Enjoy the ownership of your house property and, at the same time, tap its dormant potential, and utilise the LAP funds to meet your financial needs.  You are eligible to get approved for receiving an amount equivalent to 65% of the property value. However, ensure that you do not miss any EMI to avoid future hassles.
 
Also Read: How To Make Sure Your LAP is Paid on Time
 

5. Get Reasonable Interest Rates

Stay aware of the value of your house property so that you know how much loan you can avail when you take a LAP. The accurate valuation of your property is crucial because high-value properties are considered low-risk and, hence, attract favourable rates of interest. Thus, you can pay a reasonable EMI and still address other financial needs without straining your budget.
 

6. Avail Tax Benefits on Interest Paid

Availing LAP is double gain for you since you can enjoy tax benefits on interest payments. However, note that tax deduction can be availed only if you utilise the LAP funds for specific purposes. For example, if you utilise the funds for purchasing residential property, you can claim a tax deduction on LAP interest paid under section 24(B) of the Income Tax Act, 1961. Furthermore, if you use the finds for fulfilling business objectives, you can avail a tax deduction under section 37(1) of the Income tax Act, 1961. Note that you cannot claim tax benefits if you utilise the funds to meet personal expenses like travel, education, wedding, etc.
 

Wrapping Up

It is high time that you purchase the best loan against house property in the market and put your financial worries at bay! Remember the above benefits of loan against property to make well-guided financial decisions and choose the best option for yourself. Here are a few articles that might help you find out about the eligibility criteria for the loan, the documentation involved, best available interest rates, and the probable EMI to be paid.
 

• Rules to Follow While Taking a Loan Against Property
• Beginner’s Guide for Taking a Loan Against Property

 
Just one note at the end. Make sure to have a good plan and a careful approach towards paying off your LAP, since you stand to lose the property in case of non-payment.