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26 Apr 2025

Tips to Get Quick Disbursal for Loan Against Property

Tips to Get Quick Disbursal for Loan Against Property

Getting a Loan Against Property (LAP) can be a valuable solution when you need funds for various needs, such as expanding your business, funding education, or managing medical expenses. However, the time it takes to get the loan disbursed can be a concern. At GoodLyf, we understand the importance of speed, and that's why we've compiled this guide to help you navigate the LAP application process efficiently and get your loan disbursed quickly.

What is a Loan Against Property (LAP)?

Before diving into the tips, let's clarify what a Loan Against Property is. LAP is a secured loan where you pledge your property (residential, commercial, or land) as collateral to the lender. The loan amount is typically a percentage of the property's market value.

Why Choose a Loan Against Property?

  • Lower Interest Rates: Compared to unsecured loans, LAPs generally offer lower interest rates due to the security provided.
  • Higher Loan Amounts: You can typically borrow a larger sum than you would with a personal loan.
  • Longer Repayment Tenure: LAPs often come with longer repayment periods, making EMIs more manageable.

Key Highlights for Quick LAP Disbursal:

  • Accurate Application: Providing complete and accurate information is crucial.
  • Credit Score: Maintain a good credit score (750+).
  • Property Valuation: Ensure your property's valuation is realistic and supported by documentation.
  • Document Readiness: Keep all necessary documents readily available.
  • Choose the Right Lender: Compare different lenders to find one with a streamlined process.

Detailed Steps to Accelerate Your LAP Disbursal

Here are some detailed steps you can take to ensure a quicker disbursal of your Loan Against Property:

1. Prepare a Flawless Application:

  • Completeness: Double-check your application form for any missing information. Incomplete applications are a common reason for delays.
  • Accuracy: Ensure all details provided are accurate and match your official documents. Discrepancies can raise red flags and trigger further investigation.
  • Clarity: Write clearly and legibly. If filling out the application online, review each field before submitting.

Example: A common mistake is providing an incorrect PAN number or spelling errors in your name. Verify these details carefully before submission.

2. Maintain a Stellar Credit Score:

  • Check your CIBIL score: Before applying, obtain your credit report from CIBIL, Experian, or Equifax External link to CIBIL. Identify any errors or discrepancies and rectify them promptly.
  • Pay bills on time: Consistently paying your credit card bills and loan EMIs on time demonstrates responsible financial behavior and improves your credit score.
  • Avoid excessive credit: Refrain from applying for multiple loans or credit cards simultaneously, as this can negatively impact your credit score.

Example: A credit score above 750 is generally considered good and significantly increases your chances of LAP approval and faster disbursal.

3. Accurate Property Valuation:

  • Independent Valuation: Consider getting an independent property valuation done by a qualified valuer. This can provide an objective assessment of your property's market value.
  • Documentation: Gather all relevant property documents, including the sale deed, title deed, and approved building plans. These documents are essential for the lender to assess the property's value.
  • Transparency: Be transparent with the lender about any existing encumbrances or legal issues related to the property.

Example: If your property has appreciated in value, provide documented evidence, such as recent sales transactions of similar properties in the area.

4. Be Document-Ready:

Having all the necessary documents readily available can significantly speed up the process. Here's a checklist of commonly required documents:

  • Identity Proof: Aadhaar card, PAN card, Passport, Voter ID
  • Address Proof: Aadhaar card, Passport, Utility Bills (electricity, water, gas)
  • Income Proof: Salary slips (for salaried individuals), Income Tax Returns (for self-employed individuals), Bank statements
  • Property Documents: Sale deed, Title deed, Approved building plans, Property tax receipts
  • Other Documents: Partnership deed (if applicable), Memorandum of Association (MOA) (for companies)

Example: Prepare digital copies of your documents in advance for easy sharing with the lender. Scan documents clearly and save them in PDF format.

5. Choose the Right Lender (and Product):

  • Compare interest rates: Interest rates can vary significantly between lenders. Use online comparison tools (like GoodLyf! – Internal link to LAP product page) to compare rates and choose the most competitive offer.
  • Processing fees: Inquire about processing fees and other charges associated with the loan. Factor these costs into your overall decision.
  • Reputation: Research the lender's reputation and customer reviews. Choose a lender with a track record of timely disbursals and good customer service.
  • Pre-approved offers: Check if you have any pre-approved LAP offers from banks where you already have an account. These offers often come with faster processing times.
  • Check processing times: Some lenders are known for faster processing than others. Ask about average processing times before applying.

Example: GoodLyf connects you with multiple lenders, simplifying the comparison process. Our platform helps you find the best LAP offers tailored to your needs. Internal link to LAP product page

6. Cooperation is Key:

  • Prompt response: Respond promptly to any queries from the lender. Delays in providing information can slow down the process.
  • Be available for verification: Be available for property inspections and personal interviews as required by the lender.
  • Maintain communication: Keep the lender informed of any changes in your financial situation or contact details.

7. Leverage Technology:

  • Online Application: Opt for lenders that offer online application processes. This can streamline the submission and tracking of your application.
  • E-KYC: Utilize e-KYC services to expedite the verification process.

Conclusion:

Getting a quick disbursal for your Loan Against Property requires careful planning, meticulous preparation, and proactive communication. By following these tips, you can significantly increase your chances of a smooth and speedy loan approval process. At GoodLyf, we're committed to helping you find the best LAP offers and navigate the loan application process with ease. Start your journey towards financial empowerment today! Internal link to contact page

Frequently Asked Questions (FAQs)

| Question | Answer | | :---------------------------------------------------------------------- | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | What is the typical processing time for a Loan Against Property? | The processing time for a Loan Against Property can vary depending on the lender, the complexity of the application, and the completeness of the documentation. Generally, it takes anywhere from 7 to 15 working days for disbursal after the application is submitted. | | What credit score is considered good for a Loan Against Property? | A credit score of 750 or higher is generally considered good and significantly increases your chances of getting approved for a Loan Against Property with favorable terms. | | Can I apply for a Loan Against Property if I have existing loans? | Yes, you can apply for a Loan Against Property even if you have existing loans. However, the lender will assess your overall debt-to-income ratio to determine your repayment capacity. | | What types of properties can be used as collateral for a Loan Against Property? | You can typically use residential properties (houses, apartments), commercial properties (shops, offices), and land as collateral for a Loan Against Property. | | What happens if I default on my Loan Against Property? | If you default on your Loan Against Property, the lender has the right to take possession of the property and sell it to recover the outstanding dues. It is crucial to maintain timely repayments to avoid such a situation. Consult with your lender if you are facing difficulties in making repayments. | | How much loan can I get against my property? | The loan amount you can get against your property depends on various factors, including the property's market value, your repayment capacity, and the lender's policies. Typically, lenders offer up to 60-70% of the property's market value as a loan. The RBI website offers guidelines regarding loan-to-value ratios. | | Are there any tax benefits associated with a Loan Against Property? | The tax benefits associated with a Loan Against Property depend on the purpose for which the loan is taken. If the loan is used for business purposes, the interest paid on the loan can be claimed as a business expense. If the loan is used for purchasing, constructing, repairing, or renovating a house, you may be eligible for tax deductions under certain sections of the Income Tax Act. |

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