Check Benefits of Loan Against Property (LAP) for Wedding

Last Updated : Nov. 9, 2022, 4:24 p.m.

Loan Against Property (LAP): One of a person’s most treasured memories is their wedding. A wedding is something which is very delicately planned. Couples spend months comparing caterers, decorators, wedding planners, jewellers, etc. The price of a wedding in India can range from 20 lakhs to 2 crores. It could be higher in some circumstances. Even with years of saving, one might not have enough money. Consequently, obtaining a loan against property for a wedding may be desirable.

One can obtain the money they require from the loan provider or bank by using the residential, commercial, or corporate property as collateral. Nowadays, banking institutions provide a very appealing wedding loan against property. Also, the loan application process is simple, with flexible payment terms.

Benefits of Micro Loan Against Property for Wedding:

For the following reasons, a micro wedding loan against property is an excellent solution to cover all of your wedding costs:

Loan Against Property Interest Rate

The interest rate is one of the most crucial considerations when choosing your loan against property. Many banking organizations offer loans against property at very competitive interest rates, making it easier for you to afford the monthly EMIs . So it’s ideal to enroll in a micro LAP and use the money to plan a lavish wedding. A loan against property is reasonable and preferable if the interest rate is reasonable.

Simple Application Procedure

The financial institutions feature a quick and efficient loan approval process that lasts through payment. The procedures for applying online are very simple to follow. The banking websites guide you through the transaction. Applying for a wedding loan against property online is simple.

Select “Loan against Property” from the drop-down menu after clicking the “Apply now” link on the page. Next, fill out the online application form with a few basic data and upload the required files.

The banking agents will then contact you to get the procedure further. You receive a special tracking ID after your application is accepted. With this ID, you can see the current status of your loan online.

Once your loan is approved, the approved funds are transferred into your bank account after completing the loan agreement, paperwork and property assessment, and successful authentication checks.

EMI Calculator

The Micro LAP EMI calculator is a free online service these banks provide. It’s pretty simple to use. Knowing your projected EMI budget, a loan against property EMI calculator enables you to organise your finances more effectively. It provides total transparency for your monthly cash flow. You must give all basic information, such as the loan amount, interest rate, and chosen payback period. Within seconds, you’ll know the exact amount of your EMI. You can then use it again by altering the entered information until you reach the desired EMI amount.

Simple Documentation

Along with these, simple documentation is an additional benefit when applying for LAP. The banks provide a concise and clear documentation checklist at the outset to ensure a smooth and simple transaction between the borrower and the lender. The paperwork needed for a loan against property for salaried and self-employed borrowers is as follows:

All Candidates:

• PAN
• Identification documents, such as a driver’s license or employee ID
• Documents attesting to one’s residency, such as an Aadhaar card
• Bank statements for the previous six months
• Documents about real estate.

Paid Candidates:

• Evidence of income includes copies of ITRs and recent pay stubs.

Self-Employed Candidates:

• Evidence of income: Last two years’ ITR with calculations, audited financial statements (if necessary), etc.
• Evidence of a company’s existence (Any co-applicants will also be asked for their documentation.)

Requirements for Property Loan Eligibility:

Since the property is used as collateral, qualifying for a loan against property is rather simple. Both candidates who a company employs and those who are self-employed can apply for wedding loans secured by real estate. At the time of loan application, candidates must be at least 21 years old, and by the time the loan matures, they must not have reached retirement age. The two categories of candidates are listed below.

Paid Candidates:

• Candidates may work for MNCs, publicly traded enterprises, governmental agencies, private limited companies, unregistered companies, partnerships, or sole proprietorship businesses.
• A minimum annual income of INR 1,20,000 is required.
• Candidates must attain a CIBIL score of 700 or higher.

Self-Employed Candidates

• Candidates may be independent contractors, sole proprietors, a self-employed professional (such as a doctor or a CPA), the owner of a partnership firm, a private limited liability company, a closely guarded or unregistered company, or any combination of these.
• Candidates must attain the minimum yearly profit after-tax criteria for each profession and sector.
• Candidates must attain a CIBIL score of 700 or higher.

Conclusion

Other factors will also be considered to establish your overall eligibility, including your credit record, willingness to repay, repayment capacity, nature, and the asset’s value to be pledged.

If a family wedding is coming up and you own a fully owned commercial or residential property. It would be wise to lease your property instead of liquidating your investments or savings.