If you are going to banks to apply for a loan then you must understand the viability and technical details of the property you are going to put up as mortgage. A LAP is a product that is designed keeping in mind the property as a backup. Your property can be a deal breaker as well as deal maker in your loan application. Let us look at different types of properties on which loan is provided by Banks and lending institutions –
- Registered properties with Map – A registered property with proper maps and clear sanction plan by town planning authority is one of the best mortgages considered in banking industry. Virtually all banks and NBFCs provide loan for this kind of profile. These properties are considered to be a best bet as there is a clear and legal title of the property along with the sanction plan provided by town planning authority.
- Registered properties without map – A second kind of property is a property that is registered properties without maps. In these kinds of properties banks usually look for risk mitigant like proper sale deed and ATS. These properties have a inherent risk of no clear plan by town planning authorities. If you want to get a loan for these properties then, you should provide additional comfort to bank in form of additional income or co-applicant.
- GPA – GPA stands for General Power of Attorney. It is a legal instrument that grants authority to one person to act on behalf of another person. This instrument doesn’t give any ownership on immovable property to a person being granted the authority. Banks and NBFC don’t provide a loan as GPA holder doesn’t have any legal ownership over the GPA property. In this case, you have to rely on certain HFCs that lend to GPA holder. Other option could also include external financiers, but they would charge exorbitant rates of interest.
- Lal Dora land – Lal Dora villages are integral part of Delhi property landscape. There are in total 360 villages in Delhi under Lal Dora. Lal Dora areas are that part of village that is left for livestock and residential purposes. Usually, no banks or NBFCs provide loan for these properties. You can approach new age lenders like P2P platforms to fulfill your dream of getting a loan on your Lal Dora land.
- Agricultural land – Agricultural land are specifically put under agricultural purposes only. You cannot get a loan for your agricultural land.
Adding to above points, banks usually don’t lend to a property that is above 3rd floor and an empty plot. Banks also look for properties which are self occupied. LAP is one of the easiest and finest ways to arrange funds. It offers rate of interest which is lower compared to other options as well as longer tenure.