Apply for Loan Against Property for Self-Employed

Loan Against Property EMI Calculator

Get a Loan Against Property for Self-Employed Upto 5 Crore

A Loan Against Property (LAP) for self-employed individuals allows them to make the most of their residential or commercial property to obtain significant financial support. This flexible alternative is designed to meet the diverse requirements of entrepreneurs, offering generous loan amounts for business expansion, inventory management, debt consolidation and more.The availability of favourable interest rates and prolonged repayment schedules, LAPs offers financial flexibility while reducing the pressure of immediate repayment. Read ahead to learn more about Loan Against Property for Self-Employed.

Features and Benefits of Loan Against Property for Self-Employed

Running your own business comes with its share of financial hurdles. Unexpected expenses can emerge, or a brilliant opportunity might require a quick influx of cash. That's where a Loan based on property for self-employed individuals comes in! Here are some benefits of a Loan against Property for Self-Employed:

High Loan Amount

LAPs are secured by property, enabling larger loans and freeing cash flow for business investments.

Attractive Interest Rate

Property loans for self-employed offer lower interest rates, as your property serves as loan security.

Quick Loan Procedure

LAPs offer faster approvals, providing quick access to funds for growth or urgent business needs.

Easy Repayment & Longer Tenure

LAPs improve cash flow with lower rates, flexible repayments, and long tenures for business stability.

Higher LTV

LAPs offer a higher LTV ratio, allowing you to borrow a larger portion of your property's value.

Hassle-free Documentation

LAPs for self-employed individuals have simpler documentation, making the application process faster and easier.

Loan Against Property EMI Calculator

Use an online LAP EMI calculator to estimate your LAP monthly instalments and plan your finances effectively.

Eligibility Criteria for Loan Against Property for Self-Employed

To qualify for a mortgage loan for self-employed, you'll need to meet specific criteria for loan against property:

Age

Typically between 25 and 75 years.

Citizenship

Resident Indian citizen.

Work Experience

Minimum experience requirements may vary depending on the lender.

Property

You must own a residential or commercial property with clear titles.

Check Your Loan Eligibility

Documents Required for a Loan Against Property for Self-Employed

The documents required for the LAP application can be broadly categorised:

Mandatory Documents

Duly filled application form, PAN Card

Proof of Identity

Aadhar Card, ID Card, Driver's License, and Identity Card issued by GOI

Proof of Address

Passport, Driver's License, Utility Bill, Voter ID Card, Lease/ Rent Agreement, Registry Copy, Property Tax Receipt, GST Certificate

Proof of Business Existence

GST Certificate, UDHYAM Certificate, Partnership Deed Copy, Trade License, Certificate of Practice

Signature Proof

Banker's Verification, Passport, PAN Card

Proof of Income

Last three years' Income Tax Returns (ITRs), Income Statement, Profit and loss Statement, Balance Sheet, and Bank Account Statement (previous six months)

Property Related Documents

Complete set of documents pertaining to the property in question

Interest Rates and Charges of Loan Against Property for Self-Employed

Interest rates for LAP are typically competitive and may vary based on your loan amount, credit score, and property type. Lenders may also levy processing fees and other charges. Ensure you understand all associated costs before applying. Check the table below for more details:

Maximum Loan Amount

₹20 Lakh to ₹ 5 Cr

Maximum Loan Tenure

3 Years (Min.) – 15 Years (Max)

Interest Rate

Starting from 11% P.A.

Processing Fees

Minimum Processing fee is 1%+ GST

Foreclosure Charges

Pre-Payment is not allowed within 12 months of loan sanction After 12 months, pre-payment charges will be applicable as described in the sanction letter

How to Apply for a Loan Against Property for Self-Employed?

Applying for a Loan against property for self-employed is very easy and can be done in just a few simple steps:

01
Visit Hero FinCorp website and go to the loan against property page.
02
Check your eligibility from the eligibility criteria section available on the website
03
On the mortgage loan page, check for the mandatory documents required for a mortgage loan.
04
Click the 'Apply now' tab and fill in the required information, and submit the online form.
05
Once Hero FinCorp is satisfied with your details, their executives will get in touch with you.
06
You may also apply for a mortgage loan by visiting the nearest Hero FinCorp branch or outlet.

Apply Now

Frequently Asked Questions

Who qualifies as a self-employed individual for a loan against property?

Individuals running a business or profession independently qualify as self-employed individuals for loans against property.

Can I get a LAP if my property is jointly owned?

Yes, LAPs can be secured against jointly owned properties with consent from all co-owners.

Is a good credit score necessary for a loan against property for the self-employed?

While a good credit score can improve your chances of approval, lenders primarily consider your property value and financial stability when it comes to loan against property.

Is there any processing fee for loans against property for self-employed?

Yes, most lenders charge a processing fee as a percentage of the loan amount.

What happens if I default on my loan against the property?

In case of default, the lender has the right to recover the outstanding amount by selling your mortgaged property.

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