Is There Any Restriction on The Location of The Pledged Property?

Is There Any Restriction on The Location of The Pledged Property?


You may not always have money to accomplish your dreams, but that should never stop you from being bold and taking the first step.

At some point in your life, you may experience a cash crunch, and no matter whatever you do, you can not save enough. It is at this moment that you can approach lenders to help you out financially by taking a mortgage or a LAP loan. For easy and instant loan approval go through with  PNB Housing loan against property.

What is a Mortgage Loan?

You may require a loan for many reasons, right from children’s education to marriage, or to survive financial instability. While every loan has a different purpose, a mortgage loan can cover all of them.

You can avail a LAP loan by pledging your property to a lender. The lender will pay you a sum of money as a loan to accomplish your tasks.

Who Can Apply for a Loan Against Property?

To apply for a loan against property (LAP), you need to meet the following criteria.

  •    You need to be an employee with a salary or must be self-employed with an income.
  •     During loan maturity, the maximum age for a salaried borrower, can be 60 years, and 65 years for self-employed professionals.
  •    If you want to apply for a LAP loan, you must own some residential or commercial property that you can pledge. It may be a flat, a building, or even a piece of land.
  •    The lender will view your income and decide if you are eligible for the loan.

While taking a LAP loan, you must also be aware of the loan amount, duration until maturity, and the loan against property interest rate. You can receive up to 60 per cent of the total property value as a loan.

The goal is to balance the total interest and repayment duration to get off the debt as early as possible. However, you must not decrease the duration of payment in such a way that it is impossible to repay the amount. Most importantly, you must borrow a sufficient loan amount for fulfilling your needs.

When Are You Not Eligible to Take a Loan Against Property?

You cannot take a loan against a property if you are among the following categories:

  •    Unless you are a direct or a joint owner of a property, you cannot avail a LAP loan.
  •    If there is a property ownership dispute, lenders will not grant you a loan.
    Furthermore, you can not pledge a property that is already under a mortgage.
  •    You must be within the age limit for LAP as prescribed by the lender.
  •    Your lender may not approve a loan if a certain percentage of your salary or monthly income is unable to pay the monthly installments.
  •    The lender may review your credit score to check if you are trustworthy.

Documents Required to Avail LAP Loan

To avail a LAP loan, you need to produce the following documents:

  • Photocopy of Property Documents
  • Signed Loan application form with your photos
  • Age Proof Document
  • Residence proof document
  • Educational qualifications
  • Salary or Income statement
  • Tax returns
  • Processing fees

The loan amount will be reimbursed to your bank account after verification and approval.


The property that you own can be a lifesaver in times of crisis if you apply for a LAP loan. However, the property must be under your ownership, and you must be within the age limit. You need to be extremely cautious of the loan against property interest rate, and repayment duration while applying for a LAP loan.

Must Read: Short Term Loan During the Financial Crisis