Key Features For LAP through CCL

1. Loan Amount: Generally ranges from 20 Cr to several crores, depending on the value of the property and lender’s policies.
2. Interest Rates: Typically lower than unsecured loans, starting from around 12% p.a.
3. Tenure: Can go up to 10 years, allowing manageable EMIs.
4. Loan-to-Value (LTV) Ratio: Usually up to 50-60% of the property’s current market value.
5. Usage: Funds can be used for business expansion, debt consolidation, buying new assets.

Eligibility Criteria

While requirements vary by lender, general eligibility includes:

1. Ownership of property with clear legal titles upto 50 years.
2. Stable income source Firms, companies.
3. Good credit score, preferably 700 or above.
4. KYC Docs.

Documents Required

1. Title deed and property documents upto 50 years
2. Identity & address proof (Aadhaar, PAN, Passport)
3. Income documents (ITR, balance sheets)
4. Business proof
5. Bank statements (typically last 6 months)
6. Business Plan with Projection upto 5 years

Things to Consider

1. Risk of Asset Loss: If you default, the lender has the right to auction the property.
2. Property Valuation: Lenders may offer less than expected if the market value is low or documentation is incomplete.
3. Processing Fees & Charges: Look out for hidden costs like processing fees, legal charges, or prepayment penalties.