What Can I Use Loan Against Property For?

Are you in need of money to finance your business or fund your child’s education abroad? While there may be several convenient ways to meet these expenses, one of the best options is to go for loan. You could either choose to opt for personal loan or another lucrative choice could be to take a loan against your property.

 Loan Against Property (LAP)

It can be defined as a loan disbursed against the mortgage of property. It is granted on a definite percentage of the market value of property which may be around 40% to 60%. This type of loan typically belongs to the category of secured loan in which the borrower provides assurance with the property as a security element.

The chances of getting higher loan amount are greater with the respect to such loans since these are secured. Nearly about 70% of the property value can be granted as the loan amount. The loan against property lowest interest rate might range from 12% to 15% and the loan tenure can be up to 15 years.

Loan Against Property

One can avail loan against commercial or residential property. You can take a loan against your self-occupied or rented residential property which might be a flat or merely a piece of land. There is also a possibility of deriving loan against school property.

Uses of Loan against Property:-

It can be used for the purpose of business expansion, financing the expensive medical treatments, for your vacations, higher studies in some foreign country etc.

Eligibility Criteria For Loan Against Property

The criteria to be eligible for such loans differ from bank to bank. However, there are some common factors such as:-

  • Your earnings, reserves, debt obligations
  • The property used as a guarantee
  • Your reimbursement track record for other loans etc.

How Does Loan Against Property Differ From Personal Loan?

If you have the option of choosing from one of these loans, you need to analyse both the loan types carefully on the basis of different factors before selecting the right one for you.

Loan Against Property Differ From Personal Loan Image


  • The Loan Amount- As mentioned above, loan against property is a secured loan. While a personal loan is an unsecured loan. Therefore, the risk involved is higher and the loan amount is lower. Also, the amount is decided on the basis of the income and the capacity to repay.
  • The Rate of Interest– The interest rate charged on the loan against property is lesser as compared to the personal loan; since there is lower risk of default. While the risk involved with the personal loan is higher.
  • Tenure of Loan– In the case of Loan Against Property, you may not only gain a higher amount of loan but also longer tenure. While in a personal loan, the tenure may be up to 5 years.
  • Processing of Loan– The loan processing for loan against property is a time taking procedure due to the internal and legal checks, proper evaluation of the property. The banks need to carefully examine the property which the borrower pledges to secure the loan. However, the personal loan processing is faster and the loans are disbursed as soon as it gets approval of the lender.
  • Credit Score– You can get a high credit score on a personal loan since it has a high interest rate. With loan against property, you may get a lower credit score and lender gets the benefit of the collateral. But, if the tenure is slightly longer, you can get a better credit core too. Constant Repayment is an ideal way to avail good credit scores.


Deciding which one out of the two is better depends on the financial emergency or the need. For the urgent and crucial requirement, personal loan is better. Since, it can be disbursed within few days of the application. Though, for a high loan amount with low interest rate, loan against property would be an appropriate choice.

Is it Possible to Avail Loan Against Property Without Map?

You need to mortgage your property to apply for Loan against Property. Maps are crucially important document provided by authorities. Banks usually don’t offer loan against property without a map. It is no shock that the bank would want to mortgage a property.  It is their way of ensuring safety. In India, it is not a shocker if properties come up with no maps. There are plenty of them that have no map.

Loan Against Property

Addressing the situation here are some pointers that would help:

  • Additional Co-applicant- Add an applicant with a decent credit score, when you do that you essentially ensure that the lender has some additional assurance. What better than your own spouse becoming your co-applicant.
  • Good Property Conditions- To avail the home loan without map you must first ensure that the property is well maintained. The property that is in great condition is sure to fetch well in the market
  • Application Guarantor- If your loan application has a guarantor then you can be sure of increasing your chances of getting your loan against property sanctioned, without the need of using a map. Your Guarantor will be the person who will act as protection for a loan against property without a map.
  • Loan To Value Ratio- A certain LTV is determined and fixed by the bank. It is usually somewhere around 50-70% of market value and 80-90% of the loan amount. Consider you are in grave need of Rs 60 Lakhs then what could be done? The best option would be to add funds; this enhances the creditworthiness of the loan amount.
  • Certain Banks Offer Home Loan without Map- Find the financial service providers who are ready to offer you a home loan without showing map. It is an important document, but some institutions function without the prior need of map as a document.
  • Good Repayment behavior/good CIBIL- When you repay on time it is considered as a good behavior gesture. Your CIBIL score is essential, as this increase or decreases your chances of getting a loan, any loan. There exists no substitute or competition for the CIBIL score. It is a gold standard that exists in the lending industry.
  • Proper Documentation- Although you fail to publish your map for the property, you still should maintain documentation. Some other essentials are an agreement of sale, House Tax, sale Deed, etc. these can cover up for the absence of property’s map.
  • Peer to Peer Lending- With advancements in all spheres, the aspect of new and improved money lending institutions emerging have also been prolifically growing. There are firms who genuinely offer and promote loan types of all variant. Peer to peer lending has emerged as a safe option.
  • Private Lenders- In a few cases, it has also been observed that private lenders are ready to lend for a loan, but they have a fixed term and rate of interest that they charge you.

Loan Against Property Without Map Image

In many cases, you can find private lenders are more than willing to lend to borrowers loan against property without map. But, these private lenders usually charge a fixed interest rate which is quite large compared to the reducing the rate offered by most of the banks. These lenders hold the prowess to offer best money lending service with the help of loans. They offer their careful assistance; lend their ear to know your particular needs better. The body of work they offer is one of a kind. They have a team of professionals who closely work with you to provide you the best possible loan procurement.

What are Unsecured Loans and What are the Pros and Cons?

When you decide on opting for a loan, there are some factors that will help you determine if you need a certain type of loan or not. There are two types of loans, Secured and Unsecured Loans. An unsecured loan is a type of loan which issued and provided only if the borrower is worthy of taking credit. This particular loan type doesn’t require you to use any collateral as an asset. The terms of these loan types are two-phase process, approval, and receipt.

An unsecured loan is a complete opposite of a secured loan. Secured loan defines that the borrower pledges and keeps his collateral as a guarantee. This acts as the lender’s security. Unsecured loans are bigger risks for the lender since the rate of interest is typically high and the credit score expected to be published is also high. In some cases, the lender may allow loan applicants with insufficient credit to offer a cosigner. The cosigner can legally obligate to fulfill the debt in case the borrower becomes a defaulter.

Unsecured Loans Image

There are two types of unsecured loans, revolving line of credit and fixed-interest installment loans. They offer perks insurance policies, warranty, free airfare, and hotel stays. Some people who issue the loan also have discounted purchases involved, movie tickets, and much more.


  • There is no risk to the personal property since you haven’t kept any as collateral. If you get laid off, nothing can bother you since there is nothing the lender can sell to reimburse the money.
  • The process to apply for an unsecured loan is similar, since the banks and credit unions have made the whole process simpler and easier. You can apply for the loan on peer-to-peer lending from the comfort of your home.
  • Unsecured loans have an added advantage that in the worst case scenario the balance that is due gets wiped away if you file for bankruptcy. However, one must keep in mind that this shouldn’t be the intention of opting for a loan. This can count under fraudulent and forgery. Activity. An unsecured loan has its own way of wiping off the personal loan.


  • The loan amounts are small. Unsecured loans are good for the people who wish to borrow a loan, but it can be fairly risky for lenders. This is why the loan is provided for a lesser amount. The risk that there exists with no collateral involvement is the major reason for risk. Recouping the money is greater.
  • Lenders charge quite a high rate of interest to justify the risk that there involves in providing unsecured finance.



To procure an unsecured loan you must have a good credit score with decent credit standing. Some lenders specialize in the lending process to consumers who may not qualify for loans from traditional sources, financial institutions, and banks. Often, people wish for assistance in loan processes.

Pros of Unsecured loans Image by Loan on Phone

Loan on Phone acts as your personal financial assistance, offers you much-needed consultancy for procuring loans on competitive terms and at suitable solution. Loan on Phone helps you through the process with providing you full documentation, describing the service level and also the terms of business. The specialized services provided includes Loan against property in Delhi NCR, loan against unapproved property, and loan against industrial, and much more.

Tips for Availing a Loan Against Property Without Income Proof

Financial crisis or upheaval is sure to occur and tamper life at one point or the other. Our list of to-do tasks keeps increasing and we are often perplexed with the thought of where to get money from? It is in such grave situations that availing personal loan is the only option that is left. In some cases, you might think of selling the property in your name, why does that when you can instead avail a loan on that property. To avail Loan against Property (LAP) the market value is assessed before sanctioning the loan. After careful assessment of every legal encumbrance, the loan is provided at a certain percentage of the property’s present market value.

Loan against Property by Loan On Phone

There are some essentials that need to be checked and worked upon prior to availing the loan. One of the major constraints is that the property and the title should be in the name of the loan applicant. Basis the lender and the market price of the property, the amount of loan can range from 40 percent to 60 percent pertaining to the assessed market value. Since LAP is a secured loan, the interest rate is comparatively low as compared to a personal loan.

The only downside one is sure to face is the need for you to present legal proof of your income. Presenting mere property documents as collateral is not enough; you have to prove it to the bank that you are capable enough to repay the amount promptly. For the freelancers and unemployed with no work at the moment, who can’t show any income proof whatsoever, these tips might help in availing Loan Against Property without income proof.

Loan Against Property Without Proof - Loan On Phone

  • A Relationship Manager is assigned to you if you have a savings bank account with any bank. The manager will be the sole point of contact, who will be handling all concerns pertaining to your loan. Once your relationship manager has been assigned to you, it is required that you make the payments promptly and ask if your loan can be processed without income proof.
  • You can add a family member as your co-applicant, a member with valid credit history and a regular source of income. Adding such a member will help increase your chances of getting a loan approved.
  • Before any acceptance or rejection of your loan, the bank officer will visit for inspection. This is the time for you to make the officer understand all about your income sources. The officer will take into consideration all that you have informed and then calculate the annual income and the capacity of repayment.
  • All the banking habits will be checked and paid a look at. The lender will definitely look at the banking habits of the person. If you exhibit good banking habits consider high chances of availing the loan. Good banking habits are one when you have always maintained sufficient funds.
  • Loan to Value (LTV) indicates the loan percentage that will be provided by the bank. For instance, LTV 90% means the borrower will be required to pay the remaining 10% and the remaining 90% of it is funded by the bank.
  • Peer to peer lending is also increasingly getting popular these days. The funds are raised through the method of crowd-funding in such an arrangement; the eligible borrowers can disburse with an interest rate. Basis the risk factor that comes with the P2P lending method, you may be charged at a higher interest rate.

Without Proof home Lone- Phone On Loan

Getting a loan without income proof in Delhi can be an uphill task with loads of obstacles making the smooth ride a rough one. Lot of convincing, explaining, patience is required along with the right guidance.

Golden Tips to Consider Before Taking a Home Loan

An ideal world would be the one where everyone has enough capital to fulfill all their needs. In reality, most of us have to rely on borrowing system to meet our goals. This gap between expectation and reality is bridged well by banks and NBFCs. These financial institutions bombard the prospective customers with alluring loan offers through various modes of marketing, such as emails, SMS, and personal calls. Some commit to provide the lowest interest rate, while others promise quick disbursals. The truth is, taking a home loan is easier said than done. Getting a loan sanctioned can be a tedious task with overwhelming paper work and endless document verifications. There are other financial aspects that also need consideration, before applying for a home loanBefore getting into the financial spectrum, here are some of the technical terms you must get acquaint with to avail home loan for your dream abode

Principal Amount

The loan amount stipulated by the applicant for home loan.

Down Payment

Down payment amount is 15 to 25 percent of the purchase price. It varies from lender to lender and also financial credibility factors, like borrower’s capital credit history, current income, etc.

Types of Interest Rates

Fixed Interest Rate & Floating Interest rate are the two types of interest rates that exist. Fixed Rate implies that the rate on home loan remains the same for entire tenure, unaffected by market happenings. While, Floating Rate suggests that the rate varies periodically.After gaining an understanding on the terminologies important to the home loan arrangement, let us now discuss the golden tips that need to be considered before taking a home loan

Borrow smart

The first tip for borrowers would be to borrow smart. This means opt for a principal amount that is easy for you to repay. Banks provide different alluring options to you, but you must stay mindful of your specific requirement and ensure that the loan-to-income ratio is within acceptable limits.

Rigorous Research

Self-research must be well incorporated. Make an effort to indulge in extensive research before applying for a home loan. You should make an effort to choose whether to indulge in floating rate loans, or fixed rate loans. Often, borrowers choose a combination of the two for a limited time period.

Affordable EMI amount

Don’t be baffled by the availability of plenty home loan options, affordability is one factor that needs to be assessed by the applicant. You must be comfortable with the monthly EMI amount that you will have to bear for impeding time. Before deciding an EMI amount, consider all the expected expenses along with the unforeseen ones in addition to emergency expenses, and only then make the choice of EMI amount.

Decide Tenure

Repayment Tenure and the EMIs go hand-in-hand. A longer tenure is inversely proportional to the EMI amount & directly proportional to interest rate. It is advised to opt for short repayment tenure with higher EMIs, only if your budget allows.

Credit score assessment

CIBIL score consideration is imperative. Credit score or CIBIL score must be more than 750 for you to be liable to procure better rate of interests on home loan. A decent credit score provides considerably higher chance of quick loan processing.

Insurance Cover

You must consider purchasing an insurance cover that will cover the loan amount. This is advised so that, in case of an unforeseen mishap, your family is not saddled by the debt in your absence. As the lender holds the authority to take over your home if your dependants fail to pay the EMI.

Be mindful of additional charges

Banks may levy on the borrower some additional charges. These must be discussed well with the lender. Gain a perspective over, whether the charges are monthly or one-time. If the charges are monthly, then you have an added expense to cater other than EMI, and you must plan your budget accordingly.

Before you zero in your choice for the preferred loan company you must ensure that you are thorough with all the Loan documents. Since there may exist some important clause, terms & conditions that you might miss out on. With all the aforementioned tips, the hefty task of seeking home loan is simplified.

Loan On Phone, as the name suggests acts as your home loan consultant, with a mission to surpass your loan expectations and provide you the much needed help in procuring the loan on competitive terms. Loan On Phone takes pride in helping clients realize their property aspirations. To know more, contact us now and get the best loan offers with us.