Loan Against Property

Loan Against Property can get you a higher loan amount for your business or personal needs with the benefit of lower EMI. ... Quick and hassle free loan with speedy approvals. Residential and commercial properties accepted as collateral.

What is Loan Against Property?

A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 60 per cent.

Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.

Why Loan Against Property
Maintain Living Standards

Multiple Purposes

The loan against property can be availed for multiple purposes. It could be for business, education, medical needs, property purchase, marriage or any other personal or professional need.

Low on Price

Low Processing Fee

Most banks charge a low processing fee of 1% of the loan amount sanctioned.

Rider Benefits

Longer Tenure

Loans against property can be taken for tenure periods ranging up to 15 years or more, enabling the borrower gets sufficient time to clear the loan.

Tax Benefits

Lower Interest Rates

Loans against property come at lower interest rates compared to normal home loans, where the interest rate can be as high as 20%.

Documents required for Loan Against Property:

• Valid proof of residence could be any utility bill or ration card.

• Valid government approved identity proof.

• Salaried individuals need to have their salary slips of the previous 6 months.

• Self-employed individuals should provide a certified financial statement for the last 3 years.

• A copy of the latest bank statement.

• Duly filled application form with the latest photograph.

• Self-employed individuals need to provide proof of existence of their business and the business profile.

• Self-employed individuals are expected to provide details related to their educational qualifications.

• Copy of income tax returns.

• Processing fee cheque.

• All property related documents, including the approved building plan.

• Copy of details of all existing loans.

Eligibility Criteria for Loan Against Property:

Salaried Individual

• The individual should be a permanent employee with the government or a reputed company.

• The minimum age to avail loan against property is generally around 24 to 25 years.


• The applicant can be a professional in any field (doctor, engineer, architect, chartered accountant, etc).

• The maximum age of the applicant can be 65 years.

Self-Employed Individual

• The individual should be a regular at filing income tax returns.

• The individual should have been in the same business for a minimum number of years“generally between 3 to 5 years.

Property Eligibility

• The property in question should be free from legal tangles and should have clear titles registered in the name of the applicant.

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