About Loan Against Property & Commercial Purchase

Loan Against Property & Commercial Purchase.
Mortage residential, commercial, Factory, Industrial Property and get loan upto 80% of property value. Tenure 15 to 20 Years Max.
1) Age of Entry , 23 years to 55 years for salaried , 23 years to 60 years for business owners , May vary from bank to bank.
2) Min and Maximum loan amount , for urban areas 10 lakhs is minimum and maximum no limit provided one is eligible.
3) Rate of Interest is linked with REPO or any other bench mark rates. It keeps on changing from time to time Benchmark rate + spread is the ROI for a home loan in some cases Benchmark rates - Spread is the ROI for HL.
4) Minimum tenure 3 Years maximum 15 years some banks provide loans upto 20 years.
5) Prepayment, partpayment and foreclosure is allowed in a LAP or commercial purchase loan.
6) Loan to Value ratio is between 50% to 80%.
7) If LAP or Non residential purchase loan is not possible on one income, Income of blood relatives can be considered for enhancing eligibility.
8) FOIR or DBR is that part of the income which is considered for emi paying capacity for calculating eligibility.
9)Floating rate Vs Fixed rate. A fixed rate in LAP or NRP is always higher as compared to a floating rate, Most of the banks and HFC provides loan on floating rate of interest.
10)Property Insurance, Most banks insist on property insurance at the time of disbursement of loan.
11)Life insurance is optional but one should check all terms and condition before taking insurance as few banks give general insurance product for 5 years only.
12)Documents varies for salaried, self employed , Merchant Navy, NRIs etc.
13)Documents related to property also varies from state to state but below are a few documents required
a) Property chain agreement or builder buyer agreement.
b) Sale deed and agreement to sale.
c) Approved plan
d) CC and OC
e) Share certificate both side.
f) Society registration certificate.
g) Property tax paid receipt and Maintenance bill.