LAP LOAN Loan against Property (LAP) refers to a secured loan category somewhat like a home loan where the borrower provides guarantee by using his property as security. The right of ownership of the property is still with the borrower, and if for some reason, the borrower is unable to repay the loan amount, the property can always be sold off to pay off the debt. The maximum loan amount varies from bank to bank and could range from Rs.2 lakhs up to Rs.100 lakhs. The loan amount depends on the property valuation, your income and of-course your repayment capacity. The maximum loan amount can come upto 80% to 100% of property value for commercial setups and up to 80% for residential properties (This is really variable as it completely depends on the valuation of your property). The maximum loan tenure in Loan Against Property cases is 15 years. Be ready to provide security, collateral or guarantors in order to obtain a Loan Against Property, not to mention a long verification process.

1. LAP LOAN
Loan against Property (LAP)
refers to a secured loan category somewhat like a home loan where the borrower provides guarantee by using his property
as security. The right of ownership of the property is still with the borrower, and if for some reason, the borrower is unable to
repay the loan amount, the property can always be sold off to pay off the debt.
The maximum loan amount varies from bank to bank and could range from Rs.2 lakhs up to Rs.100 lakhs. The loan amount
depends on the property valuation, your income and of-course your repayment capacity.
The maximum loan amount can come upto 80% to 100% of property value for commercial setups and up to 80% for
residential properties (This is really variable as it completely depends on the valuation of your property).
The maximum loan tenure in Loan Against Property cases is 15 years.
Be ready to provide security, collateral or guarantors in order to obtain a Loan Against Property, not to mention a long
verification process.
Most banks do not accept properties that are on lease or that are based on power of attorney.
The maximum age limit of eligibility is 60 years.
Loan Against Property features Fixed or Floating interest rates. You also have an option of changing from Fixed to Floating
interest rates and vice versa once every year.
A processing fee is usually 0.05% to 3% of the loan amount and is payable upfront. This fee however will be deducted from
the disbursal amount payable to you. We recommend that you tray and negotiate a 0% processing fee or atleast a flat
discount. Most bankers and agents will be happy to do this to ensure the loan gets sold to you.
You can also prepay the entire loan outstanding anytime after 180 days of availing the loan. Pre-payment charges will be
levied accordingly. If you intend to do so, please ask for the pre-payment amount to be waived or a reduction in the penalty
charges.
You can also increase or enhance your loan against property eligibility. For that you need to show income of atleast three
persons, most preferably a family member or a business partner.
ADDITIONAL POINTS TO REMEMBER WHEN CONSIDERING A LOAN
AGAINST PROPERTY:
Compare Loan Against Property offers from 3-4 banks, and select the one which offers maximum benefit to you and your
purpose.
Pay special attention to the tenure of the loan. The EMI may be less for longer tenures, but the total interest outflow will be
higher.
If its possible, consider pre-payment options. All banks charges 2% – 3% of the loan in case you decide to pre-pay the

2. outstanding amount.
Default in payments results in penalties. It can also adversely affect your credit history and profile. So make sure to make
your payments on time. This really plays an important role in getting more loans. Dont miss payments or you will be
penalized.
Make sure that all deals and offers agreed upon are supported by relevant papers. So make sure you always ask for a letter
in a banks letter-head mentioning the likes of, exact rate of interests, processing fees, pre-payment charges along with
interest-schedule, when you decide to finalize your loan with a particular bank or agent.
Make sure you recheck all terms and conditions, before signing any documents. Please Read the Fine Print.
Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, take your time. Do not leave anything
for the executive to fill-up.
Once you have received a loan do your best to pay it back as quickly as possible. Banks make their money off the interest
they charge and the sooner you pay back a loan the less money you will have to pay in interest.
LOAN AGAINST PROPERTY ELIGIBILITY CRITERIA
Some of the Elgibility Criteria when applying for a Loan Against Property Are As Follows.
 Age (min. 21 years)
 Property Valuation
 Existing Liabilities (if any)
 Current Work Experience
 Financial Documents
 Number of Dependants
The eligibility for LAP is calculated on basis of either the percentage of property value that you own and the amount of
income you have to enable you to return the EMI on the Loan. So you can get Loan against property upto annex % of
property value and the net amount that you earn after other EMI has been deducted from your net income.
Loan against Property is given on the below mentioned property types and the percentage of loan you can get is given
below:
LOAN AGAINST PROPERTY – FOR A RESIDENTIAL PROPERTY:
-Self Occupied – 65% of Property Value
-Vacant – 55% of Property Value
-Rented – 55% of Property Value
LOAN AGAINST PROPERTY – FOR A COMMERCIAL PROPERTY:
-Self Occupied – 50% of Property Value
-Vacant – 40% of Property Value
-Rented – 40% of Property Value
-This varies from Bank to Bank by 5 – 10% of the above mentioned percentages.
In order to calculate how much you would be estimated to pay, most banks use a formula which is given below.
LOAN AGAINST PROPERTY FOR SALARIED INDIVIDUALS:

3. -{(NTH – Obligation) * 60%} / EMI per Lac.
LOAN AGAINST PROPERTY FOR SELF EMPLOYED INDIVIDUALS:
-{(NTH – Obligation) * 65%} / EMI per Lac
Whichever is lower from the value of the property or your income- that loan amount will be given to you.
Other Eligibility Criteria Revolves Around the Maximum Age of The
Person Applying For The Loan
-For Salaried employees – 60 Years. -For Self-Employed – 70 Years.
Personal Loan Partners
 HDFC Bank
HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra that was incorporated
in August 1994. HDFC Bank is the fifth largest bank in India by assets and the largest bank by market
capitalization as of 1 November 2012.
 ICICI Bank
ICICI Bank Limited is a multinational financial services company headquartered in Mumbai, India. It is the second
largest bank in India by assets and third largest by market capitalisation
 AXIS Bank
Axis Bank Limited is an Indian financial services corporation headquartered in Mumbai, Maharashtra. It had begun
operations in 1994, after the Government of India allowed new private banks to be established.
 IDBI Bank
IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorised IDBI as
an “other public sector bank”.
 Kotak Mahindra Bank
Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak
Mahindra Finance Limited, a non-banking financial company.
Banks and financial institutions including:
 Bajaj Finserve
 Cholamandalam
 Citibank
 DCB (Development Credit Bank)
 Deutsche Bank
 DHFL
 EDELWEISS
 First Blue
 Fulletron

4.  HDB Financial Services
 HDFC LTD
 HSBC
 IndiaBulls Financial Services Pvt Ltd
 Indusind Bank
 ING Vysa Bank Ltd
 Karvy Financial Services Pvt Ltd
 Kotak Mahindra Bank Ltd
 Magma Finance
 Reliance Commercial Finance
 Religare
 Standard Chartered Bank
 Shriram City
 Tata Capital
BALANCE TRANSFER YOUR LOAN
When was the last time you checked your home loan statement?
Has your loan tenure increased since your signed up?
Are you paying more than 10.5% interest on your home loan?
Save Money With A Home Loan Balance Transfer!
Many people don’t know that banks don’t increase Home Loan EMIs but they increase the tenure of the home loan when the
floating interest rate increases. If you are paying 11-12% interest rate on your home loan then we can help you save a lot of
money.
Fill The Form On The Right To Get The Best Rate For Your Home Loan Balance Transfer.
Pre-payment of your home loan does not have any penalty and switching your home loan balance to a new bank has never
been easier!
Balance Transfer for Home Loans and Personal Loans is a product, offering the customer a choice to transfer the
outstanding balance of the home loan availed for better terms & conditions, EMIs and possibly well sized savings that could
be better invested elsewhere.
Many customers look at Home Loan Balance Transfers as making their loans more efficient. In some cases, the nature of
Floating Interest Rates leaves customers with longer tenures, higher EMIs and so on. Many customers find their solution in
Home Loan Balance Transfers which help to move from higher rate of interest to lower rate of interest or increase in loan
components as Top ups.
PERSONAL LOAN BALANCE TRANSFER
High value personal loans, loan against property, and multiple loans from different banks and credit cards can be
consolidated into one high value loan using Personal Loan Balance Transfers. Due to floating interest rates being the norm
for high value loans, customers may still retain their original EMIs but might end up with a much longer loan tenure. This is
an undesirable situation for a loa taker, but a position that many find themselves in.
A personal loan balance transfer can help customers better manage their various loan products, possibly with a more
competitive interest rate.
TOP UP YOUR HOME LOAN & PERSONAL LOAN

5. Customers can apply for a Top-Up on their Home Loans & Personal Loans using the Balance Transfer facility as and when
they need to meet their personal requirements (other than for speculative purposes) or to possibly consolidate two loans
from seperate banks to a single larger loan from a different banking provider, with a more competitive interest rate.
Customers can benefit from some additional funds against the security of property. Customers opt for top up loans for many
reasons, some of which are mentioned below.
Furnish your homeBuy consumer durablesChild’s education expensesDaughterís marriageFamily holidayBuy a new
vehicleConsolidate two active loans under a single provider.
ELIGIBILITY FOR BALANCE TRANSFER
Home Loan balance transfers and personal loan balance transfers have stringent eligibility requirements that one is typically
familiar with while taking a home loan or a personal loan. Click to know about the eligibility requirements for Home Loan
Balance Transfers.
DOCUMENTATION FOR BALANCE TRANSFER
Just like the documentation requirements for Home Loans and personal loans, applicants will need to provide a set of
documents to approv the home loan balance transfer. Click to know more details on Home Loan Balance Transfer
Document Requirements.
MORE INFORMATION ON BALANCE TRANSFER
Home Loan & Personal Loan Balance Transfers are primarily used for High value loans, where rising tenures and expensive
EMIs become too troublesome, due to flux in market conditions. A Home Loan Balance Transfer can go a long way in
helping sustain a long tenure home loan or loan against property and also gives one the option of working with competing
banks for better rates.
A Star Solutions, and works with over 35 preferred banks. A list of banks A Star Solutions works with are Axis Bank, Bajaj
Finserve, Cholamandalam, Citibank, DCB, Deutsche Bank, DHFL, ECL Finance, EDELWEISS, First Blue, Fulletron, Capital
First, HDB Financial Services, HDFC BANK LTD, HDFC LTD, HSBC, ICICI Bank Ltd, IndiaBulls Financial Services Pvt Ltd,
Indiainfoline, Indusind Bank, ING Vysa Bank Ltd, Investment financial Services Pvt Ltd, Karvy Financial Services Pvt Ltd,
Kotak Mahindra Bank Ltd, Magma Finance, Money line, Punjab and National Bank, Reliance, Religare, Standard Chartered
Bank, Shriram City, Tata Capital, Electronica Finance Limited, Money Matters Finance Ltd to name a few.
A Star Solutions offers home loan and general purpose loan balance transfers from a variety of banks that it has worked with
for over 20 years! We give you the most competitive rates and special offers that you will never find elsewhere.