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CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration. CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration, CBIC chief Vivek Johri said.

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loan-against-property
A Loan Against Property (LAP) is a type of secured loan that allows a borrower to obtain funds by mortgaging their property. In India, LAP is a popular financing option among individuals and businesses that require a large amount of funds for various purposes, such as business expansion, education, medical expenses, home renovation, or debt consolidation.
Key Features of Loan Against Property
Eligibility Criteria:

To be eligible for a LAP, a borrower needs to be an Indian citizen or a resident, aged between 21 to 65 years. The borrower also needs to own a property, which can be a residential, commercial, or industrial property. The value of the property and the borrower’s income are important factors that determine the loan amount.

Loan amount:

A borrower can get a loan amount ranging from Rs. 5 lakhs to Rs. 10 crores, depending on the value of the property and the borrower’s income. The loan amount can be up to 60% to 75% of the property’s market value.

Interest rate and repayment tenure:

The interest rate for a LAP is generally lower than an unsecured loan, such as a personal loan or a credit card loan. The interest rate can range from 8.5% to 16%, depending on the lender, the loan amount, and the borrower’s credit score. The repayment tenure for a LAP can be up to 15 to 20 years, which makes it a suitable option for long-term financing.

Processing fee and other charges:

The lender may charge a processing fee, which can range from 0.5% to 2% of the loan amount. The borrower may also need to pay other charges such as legal fees, valuation fees, and stamp duty charges.

Loan disbursement:

Once the loan is approved, the lender may disburse the loan amount either in a lump sum or in installments, depending on the borrower’s requirements.

Default and foreclosure:

If the borrower fails to repay the loan on time, the lender may impose penalties and may also initiate legal action to recover the loan amount. The lender may also foreclose the loan, which means the lender will sell the mortgaged property to recover the outstanding amount.

Tax benefits:

The borrower can also avail tax benefits on the interest paid on a LAP, under Section 37(1) of the Income Tax Act, 1961. The tax benefits are available only if the loan is used for business purposes.

Conclusion

Loan Against Property in India is a useful financing option for individuals and businesses who require a large amount of funds for various purposes. However, before availing of a LAP, the borrower should carefully evaluate their financial situation and ensure that they can repay the loan on time to avoid default and foreclosure. The borrower should also compare the interest rates and other charges offered by different lenders and choose the lender that offers the best terms and conditions.

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