Best Loan Against Property Services
Turn Assets into Opportunities
Your property can help you grow — without selling it. We help you leverage your existing assets for business expansion, education, or personal investments.
Features & Benefits:
High-value loan with competitive interest
Residential and commercial properties accepted
Flexible tenure options
Transparent evaluation process
- Details
- Features & Benefits
- Eligibility
- Types of Loan
- Documents Required
Loan Against Property Details
Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as collateral to support the financing provided by the lender. The margin for a Loan Against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value).
Features & Benefits of a Loan Against Property
- Easy to get: LAP is a secured loan, making it easier for lenders to offer money to the borrower as it is backed by collateral.
- Longer tenure: Usually, banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate a repayment period of up to 20 years.
- Lower interest rate: In comparison to Personal Loans, a LAP loan has a lower rate of interest. The reason is the security offered to the banks.
- Lower EMI: When you have a longer tenure and a lower interest rate, the EMIs are bound to be lower.
- Flexibility: Various banks have flexible loan products in this category, including term loans, overdraft facilities, reverse mortgages, etc.
- Types: LAP can have various types, such as loan against residential/commercial property, loan against rent receivables, reverse mortgage, and so on.
- Tax benefits: You get tax benefits if you avail of a loan against property for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to is mortgaged to the bank. You might carry out repairs to your home, but avail a mortgage loan by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.
Loan Against Property Eligibility
Each lender has their eligibility criteria for availing LAP. Below are some common criteria to be eligible for a mortgage loan:
- Age: Minimum 21 years and maximum 65 years.
- Profession: Both self-employed individuals and salaried persons with a regular source of income are eligible for a Loan Against Property.
- Joint applications: Co-applicants are permissible. Lenders can accept the income of the co-applicants to arrive at eligibility.
- Ownership:
- The applicant should have unencumbered property in their name. The property can be residential, commercial, or industrial.
- Agricultural land is not acceptable as security for the loan.
- Many banks stipulate that the property should either be vacant or self-occupied.
- Some of the banks do not consider a property that is let out on rent or lease to third parties.
- Some lending institutions sanction loans against vacant residential plots
- Margin: The margin requirement for a Loan Against Property can be 10% to 50% of the market value of the property.
- Current obligations: The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs, including the proposed one for the Loan against Property. Hence, the borrowers must declare their current obligations.
- Credit history: The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.
Types of Loan Against Property
Types of loans against property can be classified based on the purpose for which you avail the loan.
- Business Expansion Loans: Business entities can avail this facility for acquiring new machinery, purchasing of plant, meeting working capital requirements, and investing in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55%, whereas the LTV in the case of residential property is in the range of 65-70%.
- Working Capital Overdraft Facility: Banks sanction overdraft facilities against the property to meet the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures:
- Property value and nature of the property
- Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.
- Personal Expenses: Individuals can also avail a loan against the property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.
- Home Renovation: Usually, people do not avail of this loan for renovating homes, as there are separate schemes available at comparatively lower LAP interest rates. However, there can be circumstances when the borrower might have to resort to availing a Loan against Property for home renovation.
- Lease Rental Discounting: Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental
Documents Required for Mortgage Loan
The following are the documents required for a mortgage loan:
| Document Type | Documents Acceptable |
|---|---|
| Identity Proof |
|
| Address Proof |
|
| Income/Financial Documents |
|
| Property Documents |
|
| Other Documents |
|
Loan Against Property Products
Use your residential or commercial property to access high-value loans at affordable rates.
Benefits:
High loan-to-value ratio
Lower interest than unsecured loans
Flexible repayment terms
Transparent valuation & fast sanction
Best Loan Against Property Services
Turn Assets into Opportunities
Your property can help you grow — without selling it. We help you leverage your existing assets for business expansion, education, or personal investments.
Features & Benefits:
High-value loan with competitive interest
Residential and commercial properties accepted
Flexible tenure options
Transparent evaluation process
- Details
- Features & Benefits
- Eligibility
- Types of Loan
- Documents Required
Loan Against Property Details
Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as collateral to support the financing provided by the lender. The margin for a Loan Against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value).
Features & Benefits of a Loan Against Property
- Easy to get: LAP is a secured loan, making it easier for lenders to offer money to the borrower as it is backed by collateral.
- Longer tenure: Usually, banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate a repayment period of up to 20 years.
- Lower interest rate: In comparison to Personal Loans, a LAP loan has a lower rate of interest. The reason is the security offered to the banks.
- Lower EMI: When you have a longer tenure and a lower interest rate, the EMIs are bound to be lower.
- Flexibility: Various banks have flexible loan products in this category, including term loans, overdraft facilities, reverse mortgages, etc.
- Types: LAP can have various types, such as loan against residential/commercial property, loan against rent receivables, reverse mortgage, and so on.
- Tax benefits: You get tax benefits if you avail of a loan against property for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to is mortgaged to the bank. You might carry out repairs to your home, but avail a mortgage loan by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.
Loan Against Property Eligibility
Each lender has their eligibility criteria for availing LAP. Below are some common criteria to be eligible for a mortgage loan:
- Age: Minimum 21 years and maximum 65 years.
- Profession: Both self-employed individuals and salaried persons with a regular source of income are eligible for a Loan Against Property.
- Joint applications: Co-applicants are permissible. Lenders can accept the income of the co-applicants to arrive at eligibility.
- Ownership:
- The applicant should have unencumbered property in their name. The property can be residential, commercial, or industrial.
- Agricultural land is not acceptable as security for the loan.
- Many banks stipulate that the property should either be vacant or self-occupied.
- Some of the banks do not consider a property that is let out on rent or lease to third parties.
- Some lending institutions sanction loans against vacant residential plots
- Margin: The margin requirement for a Loan Against Property can be 10% to 50% of the market value of the property.
- Current obligations: The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs, including the proposed one for the Loan against Property. Hence, the borrowers must declare their current obligations.
- Credit history: The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.
Types of Loan Against Property
Types of loans against property can be classified based on the purpose for which you avail the loan.
- Business Expansion Loans: Business entities can avail this facility for acquiring new machinery, purchasing of plant, meeting working capital requirements, and investing in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55%, whereas the LTV in the case of residential property is in the range of 65-70%.
- Working Capital Overdraft Facility: Banks sanction overdraft facilities against the property to meet the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures:
- Property value and nature of the property
- Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.
- Personal Expenses: Individuals can also avail a loan against the property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.
- Home Renovation: Usually, people do not avail of this loan for renovating homes, as there are separate schemes available at comparatively lower LAP interest rates. However, there can be circumstances when the borrower might have to resort to availing a Loan against Property for home renovation.
- Lease Rental Discounting: Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental
Documents Required for Mortgage Loan
The following are the documents required for a mortgage loan:
| Document Type | Documents Acceptable |
|---|---|
| Identity Proof |
|
| Address Proof |
|
| Income/Financial Documents |
|
| Property Documents |
|
| Other Documents |
|
Loan Against Property Products
Use your residential or commercial property to access high-value loans at affordable rates.
Benefits:
High loan-to-value ratio
Lower interest than unsecured loans
Flexible repayment terms
Transparent valuation & fast sanction