A “Loan Against Property,” allows people to unleash the market value of what they have as properties by securing loans against them. This form of loan is widely used for a variety of objectives, including business development, consolidation of debts, personal requirements, and other commercial needs.
People who use their property as security may take out funds and pay them over an extended period in EMIs, which allows them to keep the rights to the asset while receiving funds. The financial institution keeps the property paperwork until the money borrowed is fully returned; the properties might be residential, business-oriented, or industrial.
With Aadhar Housing Finance Limited, it has become very simple to get a Home Loan or Loan Against Property, even with a Lal Dora Property in all areas. With an Aadhar home loan or loan against property, you can meet your monetary needs in 2024.
Highlights and Advantages of a Loan Against Property 2024
Cheaper Rates of Interest: The secured structure of the loan significantly decreases the potential lending risk of banking institutions as well as NBFCs, enabling them to present the money at a more affordable rate.
No End-use limits: The money from loans could be utilized for anything, such as combining several high-interest debts, supporting wedding expenses, expanding a business, and more.
Extended Loan Tenure: NBFCs and banking institutions provide loan terms of up to 20 years on the property, which leads to lower EMIs. Bigger loan size: Lenders typically fund up to 70% of the property’s worth, which leads to larger loan sizes.
Increased Likelihood of Loan Acceptance: Because the loan is secured by a property, banks and NBFCs have fewer risks associated with lending, and applicants are more likely to get the loan.
Home Loan and LAP in Lal Dora Properties: Individuals with Lal Dora properties can apply for these loans.
Funding on Low CIBIL Score and Income: These financing options have made it easy to get the advantage of loans even with low CIBIL SCORE and income. All income-level individuals can now opt for a loan.
Home Loan and LAP in Lal Dora Properties Highlights 2024
| Lender | Aadhar Housing Finance Limited | Aadhar Housing Finance Limited |
| Loan Feature | Housing Loan | Loan Against Property |
| Loan Amount | Rs. 5.00-70.00 Lakhs | Rs. 5.00 Lacs – 1.00 Crore |
| Rate of Interest (ROI) | 10.50% Onwards | 12.50% Onwards |
| Loan Tenure | Up to 25 Years | Up to 15 Years |
| Login Fee | Rs. 4,130.00+ | Rs. 4,130.00+ |
| Processing Fee | Up to 1.50% + GST | 1.50% – 3% + GST |
| Part Payment | Allowed | Allowed |
| Accepted Collateral | – Khasra-Khatauni Property | – Residential Property |
| – Lal Dora Property | – Commercial Property | |
| – Unapproved Property | – Residential/Commercial Plot | |
| – Gram Panchayat Property | – Khasra-Khatauni Property | |
| – Legal & technical not clear | – Lal Dora Property | |
| – Bachha Flat | – Unapproved Property | |
| – Basement with 1st Floor | – Gram Panchayat Property | |
| – Subdivided Property | – Legal & technical not clear | |
| – Without MAP Property | – Bachha Flat | |
| – Subject to Sale Deed | – Basement with 1st Floor | |
| – Regularized Colony | – Subdivided Property | |
| – Approved Property | – Without MAP Property | |
| – Plot | – Subject to Sale Deed | |
| – Stone Slab Property | – Regularized Colony | |
| – Ground+5th Floor | – Stone Slab Property | |
| – Dual/Multiple floors up to UGF | – Ground+5th Floor | |
| – 4th floors without Map | – Multi-Tenanted unit up to 10 Tenants | |
| – GPA Properties | ||
| Applicant Age | Salaried – 21-60 Years | Salaried – 21-65 Years |
| Self-Employed – 23-65 Years | Self-Employed – 23-70 Years | |
| Additional Benefits | 1. Funding for Home Renovation | Funding on Ground+5th Floor too without MAP |
| 2. Funding on Ground+5th Floor too without MAP | ||
| 3. Home Loan + Self-construction | ||
| 4. Plot Purchase & Construction |
How Can One Make Use of an Aadhar Home Loan?
| Loan Type | Purpose | Loan Amount | Tenure |
| Home Loan for Salaried | For salaried individuals | Up to Rs 1 crore | Up to 30 years (bank account) / Up to 20 years (cash) |
| Home Loan for Self-employed | For self-employed individuals | Up to Rs 1 crore | Up to 20 years (age < 70 at maturity) |
| Home Improvement Loan | For home renovation activities | Up to Rs 1 crore | Up to 30 years (bank account) / Up to 20 years (cash) |
| Loan for Construction/Plot Purchase | Purchase non-agricultural land | Up to Rs 1 crore | Up to 20 years (plot only) / Up to 30 years (plot + construction) |
| Home Extension Loan | For home extension needs | Up to Rs 1 crore | Up to 30 years (Salary in Bank Account) / Up to 20 years (Cash Salary) |
Required Documents to Apply for Aadhar Home Loan and Loan Against Property
| Document | Housing Loan (Salaried) | Housing Loan (Self-Employed) | Loan Against Property (Salaried) | Loan Against Property (Self-Employed) |
| KYC of Applicant & Co-Applicant | Required | Required | ✔️ | ✔️ |
| Last 3 Months Salary Slip | Required | Not applicable | ✔️ | ❌ |
| Last 12 month Bank Statement of Applicant | Required | Required | ✔️ | ✔️ |
| Last 12 month Bank Statement of Co-Applicant | Required | Required | ✔️ | ✔️ |
| Last 3 year ITR with computation of income | Required | Required | ✔️ | ✔️ |
| Last 2 Year Form 16 | Required | Not applicable | ✔️ | ❌ |
| 26AS of last 2 years | Required | Required | ✔️ | ✔️ |
| Appointment Letter of Applicant (if available) | Required | Not applicable | ✔️ | ❌ |
| Agreement to Sale (if purchase case) | Required | Required | ✔️ | ✔️ |
| Property Paper with complete chain of last 13 years | Required | Required | ✔️ | ✔️ |
| Approved MAP of Property (if available) | Required | Required | ✔️ | ✔️ |
| LOD, Foreclosure Statement & SOA (if BT Case) | Required | Required | ✔️ | ✔️ |
| Sanction letter of all running loans | Required | Required | ✔️ | ✔️ |
| Latest Utility Bill (owned residence) | Required | Required | ✔️ | ✔️ |
| Copy of GST registration | Not applicable | Required | ❌ | ✔️ |
| Copy of MSME registration | Not applicable | Required | ❌ | ✔️ |
| Copy of Last 12 months GST return | Not applicable | Required | ❌ | ✔️ |
| Last 3 year audited balance sheet of Applicant | Not applicable | Required | ❌ | ✔️ |
| Last 3 year Tax audit report of Applicant | Not applicable | Required | ❌ | ✔️ |
| Latest utility Bill of Office (if owned) | Not applicable | Required | ❌ | ✔️ |
| Last 3 year Debtors & Creditors on letterhead | Not applicable | Required | ❌ | ✔️ |
| List of Directors & Shareholders (if Company) or List of Partners (if Partnership firm/LLP) | Not applicable | Required | ❌ | ✔️ |
How to Apply for Aadhar Home Loan and Loan Against Property
| Step | Aadhar Home Loan | Aadhar Housing Loan Against Property |
| 1. Open Website | https://referloan.in/ | https://referloan.in/ |
| 2. Navigate to Loan Option | Select “loan” | Select “loan” |
| 3. Select Loan Type | Choose “Aadhar Home Loan“ | Choose “Aadhar Housing Loan Against Property“ |
| 4. Existing Client? | Complete the form if existing client | Complete the form if existing client |
| 5. New Applicant? | Register before submitting application | Register before submitting application |
| 6. Enter Information | Fill in all required details | Fill in all required details |
| 7. OTP Authentication | Verify mobile phone or email with OTP | Verify mobile phone or email with OTP |
| 8. Provide Earnings & KYC Information | Submit earnings and KYC documents | Submit earnings and KYC documents |
| 9. Choose Loan Size | Select desired loan amount | Select desired loan amount |
| 10. Attach Relevant Papers | Upload all necessary documents | Upload all necessary documents |
| 11. Submit Application | Send the completed application form | Send the completed application form |
| 12. Await Reply | Wait for a response from Refer Loan | Wait for a response from Refer Loan |
Why Choose Aadhar Housing Finance Among Others?
- Aadhar Housing Finance provides loans for homes up to 70 lakhs.
- LAP loans are an appealing alternative when you require an ample amount of money due to their low rates of interest and long repayment terms.
- Different kinds of collateral are allowed. Nearly any type of property may be used as collateral, including land, buildings, apartments, and Lal Dora Properties.
- You may reimburse the money you borrowed by making a secure online payment via the Electronic Clearing Service (ECS).
- If you are considered eligible and have all of the necessary documentation, it takes no more than 7 to 10 days to process a loan.
Bottom Line
Economic hardship related to home reconstruction, business expansion, children’s higher education, weddings, or medical emergencies can arise at any time, but they can be easily resolved if you have property. You can secure funding by taking out loans against your property, and the property you own may help you realize your aspirations.
Although there is certainly no tax break for LAP, there are many possibilities for tax exemptions on house loans under Section 80C and Section 24 of the Income Taxation Act. A LAP is essentially a form of home loan, but it has its own set of guidelines and standards.