I own a flat in an apartment, whose current value is 9 Lacs. Loan was closed 3 years back. There is no amount due to builder. Registration is not done yet. My questions-
1. Once I register it, Can any bank/NBFC provide me loans if I wish to put my house on mortgage?
2. If yes, what are the documents needed generally? Also, which banks/NBFCs can be approached for the same?
3. Do they check CIBIL for this loan as well? Also, once they provide the loan – does this come as an entry in CIBIL?
4. Same question as above – in case of Gold Loan.
5. How much amount can I expect, if approved?
Hmm.. right. Only problem is that I can contact banks only after registering the property. And to register it, I would need to pay that good amount. I’ll be in a bit trouble if I register the property and then don’t get that LAP. Because I won’t be able to reduce the debt in this case. That’s why this confusion. Can’t believe in bank’s words anymore. Each one said that it would be approved after seeing my CIBIL report. And, all of them declined after formal application 🙁
Dear Prasoon, no matter you go for LAP or not, sooner or later you w’d have to register your property so the expenses meant for registration are bound to happen. Still you have a sleek chance to register & later on trying for LAP OD account.
Thanks
Ashal
Dear Prasoon, the loan you are talking about is called Loan Against Property (LAP). A lot of banks offers LAP. Interestingly you have 2 options to chose for LAP.
1. A lump sum payment made to you & you start repaying regular EMI from next month.
2. An overdraft is opened in your name where the maximum withdraw limit is equal to your loan amount. In this case, you have the liberty to use the X amount out of full loan amount & paying interest only on X amount. You are not liable to pay regular EMI in this case.
For more details on this LAP product, please contact ICICI, SBI, PNB, Axis, BOB, HDFC Bank to name a few.
Yes registration of property in your name is a precondition. Normally the loan ‘ll be sanctioned as a %age of market value, depending upon the repayment capacity of the borrower.
Thanks
Ashal
Ashal,
Thanks for your reply. Just to remind you about my situation – http://localhost/jagoforum2/preventing-a-debt-trap-any-help/4034/
Can I get this LAP after registration based on my status? To clarify more, I’ll receive a bonus in Nov-Dec. Should I register my property with that money and try for LAP to clear my debts? Or, should I just make payments to my credit cards? I would like to go for LAP only if it’s almost certain.
Regards,
Prasoon
Dear Prasson, thanks for recalling the old discussion. Based upon the current debt status, the LAP may or may not be given. Although I do know your intentions are good to clear off your dues from all other loans. Still you should give it a try first. Please go for that OD (Over draft) linked LAP. In this case, you ‘ll withdraw in tranches & only as per actual requirements. Also the interest outgo ‘ll be limited to the amount utilized so net outgo of interest ‘ll be lower than the full LAP under normal loan mode.
Thanks
Ashal
Hi Prasoon,
What you are referring to is called as a Refinance loan. The terms & conditions of a refinance loan is almost similar to a normal housing loan. You approach a bank and they would generally only accept an already registered property. Unlike a home loan, they shall give you a lump sum check in your name which you can credit in your bank account.
The interest rate in most cases would be identical or very slightly higher. The documents are also similar. You can approach HDFC and check for exact details.
They would indeed check with CIBIL for your rating score. The approval amount would probably be 85% of the value. They may consider the registered value as the market value of the property.
Not sure about Gold Loan. It would more be classified as a secured loan and the interest rate would be more than a housing loan. The loan amount may be restricted to a % value of the gold.
Regards
BanyanFA