Loan / Limit Against Property (LAP)

---

🎯 Purpose

To provide finance against property for:
✅ Expansion of existing business
✅ Meeting working capital needs (including newly established concerns with sufficient experience)
✅ General purposes, subject to eligibility and compliance.

• Individuals 
• Proprietorship Firms
• Partnership Firms
• Private & Public Limited Companies
   

• Experience in the trade/business
• Proven past track record, integrity, and satisfactory market report
• Newly established concerns may also be financed if key persons have proven credentials with a sound project report.
   

• Retail & wholesale traders
• Manufacturers with satisfactory financial background and good collateral
• Eligible businesses:
  • Provision/Kirana stores
  • Readymade garment/cloth merchants
  • Hardware, construction material, sanitary stores
  • Auto spare parts dealers
  • Petrol pumps, mobile oil dealers
  • Departmental/cosmetic stores
  • Electronics and electrical goods sellers/servicers
  • Small-scale service enterprises (printing, repairing, advertising agencies, equipment rental, photocopying, auto repair, dry cleaning, beauty parlours, servicing farm equipment, etc.)
     

• Retail Trade: up to ₹20.00 Lakhs (Priority Sector)
• Micro & Small Enterprises (Manufacturing & Service Sector): up to ₹10.00 Lakhs
• Other: Non-Priority
   

• For General/Business Purposes: Up to ₹60.00 Lakhs
• Proposals exceeding ₹60.00 Lakhs can be considered by the Board based on borrower’s genuineness, creditworthiness, and market conditions.
   

• 50% in case of Term Loan and Limit/Overdraft against Property.
   

✅ Primary Security:

• Equitable/registered mortgage of immovable property.
• Property value should be at least double the required loan/limit.
   

✅ Additional (for business purpose):

• Hypothecation of stock and fixed assets.
   

✅ Insurance:

• Property must be insured against fire, flood, riots, earthquakes, etc., with the bank clause at borrower’s cost.
   

1. Property must be fully paid, freehold, and owned by the borrower or eligible close relatives (spouse, parents, son, daughter).
2. Obtain legal opinion and search report from a bank-approved advocate.
3. Cost of legal search report, valuation report, and insurance to be borne by the borrower.
4. Ensure compliance with all parameters of the scheme before sanction/recommendation.
    

❌ Property dealers, construction contractors, and builders.
❌ Loans should not be increased based on increased property valuation.
❌ Advances under this scheme are classified based on borrower’s business activity, not under real estate exposure.

1️⃣ Duly filled loan application
2️⃣ Credit report of the firm/prop/partners/directors & guarantors (with photos & supporting docs)
3️⃣ Bank statements (last 6-12 months)
4️⃣ Last 3 years’ audited/actual Balance Sheets & P&L Accounts
5️⃣ Latest provisional financials (if B/S is older than 6 months)
6️⃣ Details of stock & fixed assets (if for business purposes)
7️⃣ Business projections for next 2-3 years
8️⃣ Up-to-date VAT/Service Tax Returns
9️⃣ PAN & ITRs (last 3 years) of firm/company, directors, and guarantors
1️⃣0️⃣ ID & address proofs of borrower/partners/directors/guarantors
1️⃣1️⃣ Title deeds for legal verification & valuation, MOA, AOA, COI, COC (for companies), board resolution
1️⃣2️⃣ Partnership deed (for partnerships)
1️⃣3️⃣ Verification report by Branch Manager
1️⃣4️⃣ Property valuation report from an approved valuer with photographs & location map

As per current norms issued by Head Office.

• LAP Limit/Overdraft: Repayable on demand, subject to renewal within 12 months.
• LAP Term Loan: Maximum tenure of 10 years (or as approved by the Board), with repayment in monthly EMIs. Reviewed by the sanctioning authority every 3 years.
   

✔ Leverage property to unlock capital for business growth
✔ Flexible tenure up to 10 years
✔ Utilize funds for working capital, expansion, or general purposes
✔ Lower rates compared to unsecured loans
✔ Transparent documentation process