SBI Home Loan: A loan against property (LAP) is a type of secured loan that is offered by banks and non-banking financial institutions (NBFCs) in India. In a LAP, the borrower pledges their property as collateral against the loan. This means that if the borrower defaults on the loan, the lender has the right to seize the property.
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Loan against property is a popular option in India, especially for individuals who need significant funds and are willing to provide their property as collateral to secure the loan. However, individuals should always compare the terms, interest rates, and fees offered by different lenders before making a decision.
SBI Loan against Property (P-LAP)
This article aims to brief you about State Bank of India (SBI) Loan against Property (P-LAP). Readers must note that LAP is also offered by several other public and private sector banks. If you are considering a loan against property, it is important to weigh the pros and cons carefully. You should also compare the terms and conditions of different lenders before making a decision.
In the SBI, loan against property can be availed for fulfilling personal needs such as meeting expenditure on education, marriage, healthcare, etc. other than speculative purposes. However, loans under SBI LAP are not permitted for business purposes.
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The process to get this loan, along with the list of documents, eligibility and interest rate, has been provided on the official website of SBI Home Loans.
The bank also offers regular home loan along with home top up loan, balance transfer of home loan, NRI home loan, Flexipay home loan, privilege home loan, Shaurya home loan and Tribal plus, among others.
It’s essential for borrowers to carefully consider their repayment capabilities before opting for a loan against property, as failure to repay the loan could lead to the lender initiating foreclosure proceedings and selling the property to recover the outstanding amount.
