Have you ever wondered about securing your financial future as a salaried individual? The constant concern about where the money will come from can be overwhelming. But what if we introduced you to a lesser-known yet powerful solution? Consider a Loan Against Property (LAP). It offers a unique opportunity to ensure a steady flow of funds while leveraging your owned property. Let us understand this type of loan and explore how it can boost your financial security.
A Loan Against Property (LAP) is a type of loan where you use your owned property, such as land, a house, or commercial premises, as collateral. This means that the lender holds onto the asset until you fully repay the loan amount. It provides you with a secured borrowing option, giving you access to funds based on the value of your property.
Some of the main advantages of loans against property are as follows:
Increased loan amount: By offering a suitable property as collateral, you can expect a significantly higher loan amount.
Flexible repayment options: Repaying the Loan Against Property is convenient, allowing you to choose between partial payments or early repayment without incurring any charges.
Swift approvals: Loans Against Property are quickly approved due to their secured nature. Typically, the loan processing can be completed within 1-2 days.
To apply for a Loan Against Property (LAP), you will need to provide the following documents:
Identity proof along with current address proof (any one of the following):
Aadhaar Card or proof of possession of an Aadhaar number
Address proof (any one of the following):
If you are an Indian resident, whether you are self-employed or salaried, and you own a residential or commercial property, you can apply for LAP. The age group eligible for LAP ranges from 18 to 75 years old.
If you are applying for a loan, you have the option to include a co-applicant. This co-applicant can be a close relative, a partnership firm, or a private limited company. By choosing a co-applicant, you can increase your loan eligibility and potentially secure lower interest rates for your LAP.
When you utilise the loan amount from your Loan Against Property for specific purposes, you become eligible for potential tax benefits. By aligning with the Income Tax Act provisions, you can enjoy these benefits:
Tax Benefits for Business Purposes: Section 37(1) of the Income Tax Act allows you to claim tax benefits on the interest and processing fees when you use the loan for business-related activities.
Tax Deduction for Residential Property: Under Section 24(B) of the Income Tax Act, if you utilise the loan amount from your LAP to purchase a residential property, you can avail of tax deductions up to ₹2 lakhs. This deduction can be claimed against the interest paid on the loan.
In conclusion, Loan Against Property offers a powerful solution for securing your financial future. You are now ready to tap into the potential of LAP. Consider LAP as a smart strategy to unlock financial stability and explore the opportunities it brings.
With IIFL Home Loans’ LAP services, you get to experience hassle-free loan terms along with a truly convenient borrowing experience You can also use residential/commercial properties or plots of land as your collateral.
Whether you are starting a new venture, need working capital, or are managing personal expenses, IIFL Home Loan has you covered. Existing borrowers can transfer their balance and enjoy top-up facilities. Supercharge your business today by visiting IIFL Home Loans!
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You can claim tax benefits on your Loan Against Property when you fulfil the following conditions:
If you use the sum for business expenses under Section 37(1), you can avail of income tax benefits.
If you utilise the loan sanction to purchase a residential property, you become eligible for tax benefits.
Opting for a Loan Against Property (LAP) is highly advantageous compared to a Personal Loan. LAP provides numerous benefits, including greater flexibility, lower interest rates, higher loan amounts, and extended repayment tenures.
Unlock the potential of your residential or commercial property with a Loan Against Property (LAP). This versatile financial instrument allows you to leverage the value of your property to secure funds for both personal and business needs. Whether you have personal expenses to manage or require capital for your business ventures, LAP provides the flexibility you need to achieve your goals.
Both salaried and self-employed individuals can avail the advantages of LAP for a wide range of personal and professional needs, excluding speculative purposes. Whether you require funds for important life events like marriage or your child's education, business expansion, or debt consolidation, LAP provides a suitable solution to meet your financial requirements.
You have the option to foreclose your Loan Against Property account by simply submitting a written request to the financial institution.
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