As the interest rate is high, Equated Monthly Installments (EMI) for personal loans is high. It is an unsecured loan, where maximum loan eligibility is determined primarily by your income. For personal loans maximum loan tenure for personal loan is up to 5 years, which is a much lesser time when compared to LAP.

What documents are required for applying for a loan against property?

- The majority banks and financial institutions typically require the following documents. However, the requirements may vary from bank to bank.

- Application form with photograph

- Identity and Residence Proof

- Latest Salary-slips (for salaried professionals)

- Education Qualifications Certificate and Proof of business existence (for self employed professionals or businessmen)

- Last 3 years Income Tax returns and Profit /Loss and Balance Sheet (for self employed professionals or businessmen)

- Last 6 months bank statements

- Processing fee cheque

Thus LAP is one of the best ways to arrange money. The only drawback of LAP is that if the borrower is not able to pay the loan fully, the bank or financial institution can take possession of the mortgaged property.