Question 1

What is Loan Against Property?

Accepted Answer

A Loan Against Property is a secured loan where you can mortgage your residential, commercial, or special-use property to obtain immediate funds for various needs, such as business expenses or personal requirements. In an LAP, the property you own, which has a clear title, is used as collateral with HDFC Bank to provide you with financial assistance.

Question 2

Who can avail a Loan Against Property?

Accepted Answer

HDFC Bank’s Loan Against Property is available for salaried individuals aged between 25 and 65, who need funds for wedding expenses, child’s education, medical treatment, property purchase, debt consolidation, or other purposes. Self-employed individuals with their own business or practice can also apply, provided they meet the age criteria of 25 to 65 years. Medical professionals can easily qualify for a LAP and receive instant approval for loan amounts up to 75% of their property value. The loan is also available for industrial or special-use properties, with a tenure of up to 15 years.

Question 3

What is the maximum term for which I can avail a Loan Against Property?

Accepted Answer

You can avail an HDFC Bank Loan Against Property for a maximum tenure of up to 15 years.

Question 4

What is the security that I need to provide to avail a Loan Against Property?

Accepted Answer

To avail a Loan Against Property, you need to mortgage your property. This property, which can be residential, commercial, or special-use, must be well-constructed, have a clear title, and be free from legal complications. It will act as security against the loan amount.

Question 5

What are the documents required for a Loan Against Property?

Accepted Answer

For both salaried and self-employed individuals, the following documents are required:
Identity & Address Proof: Aadhaar Card, PAN Card, Passport, or Voter ID
Income Proof: 6 months' bank statements, 3 months' salary slips, Income Tax Returns (ITR) or Form 16 for salaried individuals. Self-employed individuals need a business existence document of a minimum of 5 years and ITR of 3 years.
Property Documents: Title Deed, No Encumbrance Certificate, and previous chain of ownership documents.
Passport Size Photos: To affix on the LAP application form.

Question 6

What type of property can I mortgage for a LAP?

Accepted Answer

HDFC Bank allows you to mortgage residential, commercial, or special-use properties (owned or rented) for a LAP. This includes properties like schools, warehouses, industrial buildings, or nursing homes with a capacity of 30 beds.

Question 7

Can you offer a LAP as an Overdraft?

Accepted Answer

Yes, an overdraft facility is available to all customers. It provides a credit limit that you can withdraw from as needed during the loan tenure, and interest is charged only on the amount utilized.

Question 8

What percentage of the property value can I avail as a LAP?

Accepted Answer

HDFC Bank offers a loan amount of up to 75% of the property value. The loan amount depends on the overall condition, age, and prevailing market value of the property. This is known as the Loan to Value (LTV) ratio, which varies by the type of property.

Question 9

For what purposes can I avail an LAP?

Accepted Answer

LAP can be used for various purposes, including wedding expenses, child’s higher education, medical emergencies, purchasing a new home, business expansion, debt consolidation, purchasing medical equipment, and more.

Loan Amount	Up to 50 Cr
Tenure	Up to 15 years
Rate of Interest	9.50% p.a. onwards
Processing Fee	1% of the loan amount or ₹ 4500 whichever is higher
Prepayment/Foreclosure Charges	Nil

HDFC Bank Loan Against Property

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