In today’s world, having money when you need it is very important. Sometimes, people need extra funds for big expenses like buying a home, starting a business, or paying for education. JIO Finance offers a solution called LAP, which stands for Loan Against Property. This service helps people get loans by using their property as security.
Highlights
| Criteria | Highlights |
|---|---|
| Rate of Interest | 9.00% p.a. onwards |
| Tenure | 15 years |
| Loan Amount | Rs. 10 Crore |
Who is Eligible for a JIO Finance LAP?
| Criteria | Requirement |
|---|---|
| Nationality | Indian |
| Age | 23 years – 75 years |
| Employment | Salaried/ Self Employed |
| Type of Property | Residential/ Commercial |
Documents Required for JIO Finance LAP
When applying for a Loan Against Property (LAP) with JIO Finance, you need to provide several important documents. These documents help verify your identity, income, and the ownership of the property you are using as collateral.
1. Identification Documents
- Aadhar Card: A valid Aadhar card to verify your identity.
- PAN Card: Permanent Account Number (PAN) card for financial transactions and tax purposes.
2. Address Proof (if applicable)
- Utility Bill: Recent electricity bill, water bill, or any other utility bill to confirm your current address.
- Rent Agreement: If you are renting your residence, a copy of the rent agreement is required.
3. Income Proof
For Salaried Individuals:
- Salary Slips: Last 3 to 6 months of salary slips to demonstrate your income stability.
- Income Tax Returns (ITR): Copies of your latest ITR forms to verify your annual income.
For Self-Employed Individuals:
- Income Tax Returns (ITR): Latest ITR forms to showcase your business income.
- GST Returns: If applicable, recent GST returns for businesses registered under the Goods and Services Tax.
- Bank Statements: Last 6 months of bank statements to provide a clear picture of your financial transactions.
4. Property Documents
- Title Deed: Proof of ownership of the property you are pledging as collateral.
- Sale Agreement: Agreement that outlines the terms and conditions of the property sale.
- Encumbrance Certificate: A certificate that shows the property is free from any legal dues or mortgages.
Uses of a Loan Against Property
A Loan Against Property (LAP) from JIO Finance helps you meet various financial needs. Here are the main ways you can use a LAP:
1. Business Purposes
- Working Capital: Manage daily business expenses.
- Expansion: Grow your business by opening new branches or investing in projects.
- Debt Consolidation: Combine multiple debts into one loan with better terms.
- Purchase Machinery: Buy or upgrade equipment to improve productivity.
2. Personal Purposes
- Education Expenses: Pay for tuition, books, and other educational costs.
- Emergency Funds: Cover unexpected expenses like medical bills or repairs.
- Home Renovation: Upgrade or renovate your home.
- Property Purchase: Buy a second home or invest in real estate.
3. Other Uses
- Medical Treatments: Fund costly medical procedures.
- Legal Expenses: Cover legal fees and related costs.
- Home Appliances: Purchase essential appliances like refrigerators or washing machines.
Maximum Loan Amount Offered by JIO Finance LAP
JIO Finance provides a generous loan amount through its Loan Against Property (LAP) service. You can borrow up to 70% of your property’s market value. This means if your property is valued at ₹1 crore, you can get a loan of up to ₹70 lakhs.
JIO Finance LAP Fees and Charges
| Fee/Charge | Details |
|---|---|
| Processing Fee | Up to 2% of the loan amount + GST. |
| Late Payment Charges | 2% per month on overdue amounts + GST. |
| Foreclosure Charges | Up to 4% of the principal outstanding; waived for non-commercial use. |
| Bounce Fee | ₹500 per instance. |
| Stamp Duty | As per applicable laws. |
| Instrument Change Fee | ₹500 per instance + GST. |
| Duplicate NOC/NDC Fee | ₹500 per instance + GST. |
| Part-Payment Fee | Up to 4% of the principal outstanding; waived for non-commercial use. |
| Mortgage Creation Charges | As per applicable laws. |
| Interest Rate Switch Fee | Up to 0.5% of the principal outstanding. |
| Login Fee | Up to ₹6,500. |
| Loan Cancellation Fee | ₹10,000 + interest from disbursal to cancellation. |
Loan Against Property Balance Transfer
JIO Finance not only offers a Loan Against Property (LAP) but also provides additional services to make managing your loans easier and more beneficial. Two of these services are Balance Transfer and Top-Up Facilities.
Benefits:
- Lower Interest Rates: Save money with reduced rates.
- Better Repayment Terms: Enjoy more flexible payment options.
- Enhanced Customer Service: Experience efficient support and faster processing.
Top-Up Facility
- Get Extra Funds: Access additional loans starting at ₹3 lakhs.
Must Read: JIO Finance Gold Investment
Conclusion
Jio Finance LAP is an excellent option for individuals who need substantial funds and own valuable property. With its flexible terms, competitive interest rates, and easy application process, Jio Finance makes it easier for property owners to secure a loan against their assets.
Looking for a loan against property at lowest interest rates? Book a free consultation call with Credit Dharma. We offer competitive LAP solutions, tailored for your needs.
Frequently Asked Questions
Yes, Jio Finance may provide balance transfer options if you wish to shift an existing LAP to them.
Residential and commercial properties are generally eligible, but specifics may vary.
No, JIO Finance currently doesn’t offer NRI LAP.
The property value is determined through technical evaluation by Jio Finance’s approved valuers, considering factors like location, condition, and market rates.
Property documents, tax receipts, and ownership proof are usually required.
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