The loan against property can be pre-paid along with the pre-payment charges. Usually the bank charges 2% of the principal pre-paid but there is the opportunity to repay a loan against property early and you don’t have to pay early settlement charges if payment is made through personal savings.

Some financial institutions make LAP available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalising a LAP from lending institutions. It is normally available for residential properties only, but can be available for commercial property also.

Processing fee in Mortgage loan varies from bank to bank, normally it’s start from 1.00% to 2.00% of loan amount.

In Mortgage loan bank do offer loan for 5 year to 20 years.

Some Property owners choose to release some value from their home by switching mortgages. For example, if your property was worth Rs. 3.50 cr but your mortgage was at Rs. 1.20cr which is about 34% of property value. You may increase loan amount upto 50% to 75% of the property market price and amount can be used to pay off high interest loans, working capital, property renovation and business expention. You may also save money by transferring a existing Loan against property to a lower interest rate.