Loan Against Property

Secure larger funds by leveraging your property's value. Get the lowest interest rates and flexible repayment terms for business expansion, debt consolidation, and personal needs.

₹10L - ₹50Cr

Loan Amount

8% - 12%

Interest Rate

20-30 Days

Processing Time

What is Loan Against Property?

Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to obtain funding. This type of loan offers higher loan amounts at lower interest rates compared to unsecured loans, making it ideal for large funding requirements.

With LAP, you retain ownership and can continue using your property while accessing substantial funds for business expansion, debt consolidation, education, medical emergencies, or any other financial need. The loan amount typically ranges from 60-80% of the property's market value.

0

% Property Value

0

Years Max Tenure

0

Crores Max Amount

Property Investment

Benefits of Loan Against Property

Key advantages that make LAP the preferred choice for large funding requirements

Lower Interest Rates

Enjoy significantly lower interest rates (8-12%) compared to personal loans and credit cards, making it highly affordable for large funding needs.

Large Loan Amounts

Access substantial funding up to ₹50 crores based on property value, suitable for major business expansions and high-value investments.

Retain Property Ownership

Continue to own and use your property while leveraging its value for funding. Property remains yours throughout the loan tenure.

Long Repayment Tenure

Flexible repayment tenure up to 15 years, resulting in lower EMIs and reduced monthly financial burden on your cash flow.

Multi-Purpose Usage

Use funds for business expansion, debt consolidation, education, medical expenses, or any other legitimate financial requirement.

Debt Consolidation

Consolidate multiple high-interest loans into a single LAP with lower interest rate, reducing overall EMI burden and simplifying finances.

Types of Properties We Accept as Collateral

Wide range of property types accepted for loan against property financing

Residential Properties

Self-occupied and investment properties

  • Independent Houses/Villas
  • Apartments/Flats
  • Residential Plots (Approved)
  • Row Houses/Townhouses
  • Studio Apartments
  • Duplex/Triplex Units
  • Penthouse Properties
  • Rental Income Properties

Commercial Properties

Business and investment properties

  • Office Spaces/Buildings
  • Retail Shops/Showrooms
  • Warehouses/Godowns
  • Industrial Plots/Sheds
  • Commercial Complexes
  • Hotels/Restaurants
  • Shopping Centers/Malls
  • IT Parks/Business Centers

Industrial Properties

Manufacturing and industrial facilities

  • Manufacturing Units
  • Factory Buildings
  • Industrial Land/Plots
  • Processing Plants
  • Cold Storage Facilities
  • Power Plants
  • Logistics Centers
  • Research & Development Centers

Agricultural & Other Properties

Specialized and agricultural properties

  • Agricultural Land (Non-Agricultural Use)
  • Farmhouses
  • Resort Properties
  • Educational Institutions
  • Healthcare Facilities
  • Religious Properties
  • Mixed-Use Developments
  • Under-Construction Properties*
Important Notes:
  • Property should have clear and marketable title
  • Property should be free from legal disputes
  • Under-construction properties accepted with certain conditions
  • Property valuation will be conducted by bank-approved valuers
  • Loan amount typically 60-80% of property market value

Loan Against Property vs Other Loan Types

Compare LAP with other financing options to make an informed decision

Criteria Loan Against Property Business Loan Personal Loan
Loan Amount ₹10L - ₹50Cr ₹5L - ₹2Cr ₹1L - ₹40L
Interest Rate 8% - 12% 12% - 20% 10% - 24%
Tenure 5 - 15 years 1 - 5 years 1 - 5 years
Collateral Required Yes (Property) No No
Processing Speed 20-30 days 5-10 days 2-7 days
Usage Flexibility Multi-purpose Business only Multi-purpose
When to Choose LAP:

Choose Loan Against Property when you need large funding at low cost and have property to pledge. Ideal for business expansion, debt consolidation, or major investments. Choose Business Loan for quick short-term capital without collateral.

Loan Against Property Features & Options

Comprehensive features designed to meet diverse funding requirements

Competitive Interest Rates

Starting from 8% per annum, significantly lower than unsecured loans, with transparent pricing and no hidden charges.

High Loan-to-Value Ratio

Get up to 80% of your property's market value as loan amount, maximizing your funding potential.

Flexible Repayment Options

Choose from various repayment options including EMI, bullet payments, or step-up/step-down structures.

Part Payment & Prepayment

Make part payments or prepay the loan without hefty penalties, providing financial flexibility.

Balance Transfer Option

Transfer your existing LAP from other banks to get better interest rates and improved terms.

Property Insurance

Comprehensive property insurance coverage to protect your asset against natural calamities and damages.

Loan Against Property Eligibility Criteria

Simple and comprehensive eligibility requirements for property-backed financing

Individual Eligibility
  • Age: 21 to 65 years (at loan maturity)
  • Salaried professionals with stable income
  • Self-employed individuals and business owners
  • Minimum income: ₹25,000 per month (salaried)
  • Minimum income: ₹2 lakhs per annum (self-employed)
  • Good credit score (CIBIL 700+ preferred)
  • Stable employment/business for 2+ years
Business Entity Eligibility
  • Proprietorship firms
  • Partnership firms
  • Limited Liability Partnerships (LLP)
  • Private Limited Companies
  • Public Limited Companies
  • Business operational for 3+ years
  • Profitable operations for last 2 years
Property Eligibility
  • Clear and marketable title
  • Property should be free from legal disputes
  • Approved by local municipal authorities
  • Property age: Up to 30 years (residential)
  • Property age: Up to 20 years (commercial)
  • Proper documentation and registration
  • Located in bank-approved areas
  • Adequate insurance coverage

Documents Required for Loan Against Property

Comprehensive list of documents needed for smooth loan processing

KYC Documents
  • PAN Card
  • Aadhaar Card
  • Passport
  • Voter ID Card
  • Driving License
  • Passport Size Photos
Income Documents
  • Salary Slips (last 3 months)
  • Income Tax Returns (last 3 years)
  • Form 16 (for salaried)
  • Bank Statements (last 6-12 months)
  • Employment Certificate
  • Audited Financials (for business)
Property Documents
  • Title Deed/Sale Deed
  • Property Registration Documents
  • Property Tax Receipts
  • Approved Building Plan
  • Occupancy Certificate
  • NOC from Society/Builder
  • Property Insurance Papers
Business Documents
  • Business Registration Certificate
  • GST Registration
  • Trade License
  • Partnership Deed/MOA-AOA
  • Board Resolution
  • MSME Certificate
  • Existing Loan Details

Loan Against Property Application Process

Step-by-step process to get your property-backed loan approved efficiently

1
Application

Submit loan application with property details

2
Document Review

Verification of documents and eligibility check

3
Property Valuation

Professional property assessment and valuation

4
Legal Verification

Legal and technical due diligence of property

5
Loan Approval

Credit approval and loan sanction letter

6
Disbursement

Loan agreement signing and fund disbursement

Loan Against Property EMI Calculator

Calculate your monthly EMI and plan your property-backed financing

₹50,00,000
10%
10 Years

₹66,075

Monthly EMI

₹29,29,000

Total Interest

₹79,29,000

Total Amount

Apply for Loan Against Property

Popular Use Cases for Loan Against Property

Diverse applications where LAP provides the ideal financing solution

Business Expansion

Fund new ventures, expand existing operations, open new branches, or scale your business to new markets with substantial capital.

Debt Consolidation

Consolidate multiple high-interest loans into a single LAP with lower interest rate, reducing EMI burden and simplifying finances.

Education Financing

Fund higher education, professional courses, or children's education abroad with flexible repayment options.

Medical Emergencies

Handle medical emergencies, surgeries, or long-term treatment costs without depleting savings or investments.

Property Investment

Invest in additional properties, real estate projects, or property development with leveraged financing.

Personal Milestones

Fund weddings, family celebrations, travel, or other significant personal expenses with affordable financing.

Frequently Asked Questions

Common queries about loan against property financing

You can typically get 60-80% of your property's current market value as loan amount. The maximum can go up to ₹50 crores depending on the property value, your repayment capacity, and the lender's policies.

Yes, LAP is a multi-purpose loan. You can use it for business expansion, debt consolidation, education, medical expenses, property investment, or any other legitimate financial need. However, speculative activities are not allowed.

You retain full ownership and can continue to use your property. The bank holds the property documents as security. Once you repay the loan, all documents are returned to you.

The approval process typically takes 20-30 working days, including property valuation, legal verification, and documentation. With complete paperwork, we can expedite the process.

Yes, some banks provide LAP on under-construction properties, but with certain conditions. The construction should be at least 70% complete, and the builder should be reputed with proper approvals.

Interest paid on LAP used for business purposes is tax-deductible as business expense. For personal use, you may claim deduction under Section 24(b) if used for property purchase/construction. Consult your CA for specific benefits.

Most banks allow prepayment with minimal charges (usually 1-2% of the outstanding amount). Some banks offer zero prepayment charges after a certain period. We help you choose lenders with favorable prepayment terms.

In case of default, the bank may initiate recovery proceedings and can auction the property. However, banks prefer restructuring or settlement before taking such steps. We provide guidance on loan restructuring options if needed.

Why Choose LoanAssure for Loan Against Property?

Your trusted partner for property-backed financing with expert guidance and best rates

Best Interest Rates

Compare offers from multiple banks and NBFCs to secure the lowest interest rates and most favorable terms for your LAP.

Property Valuation Expertise

Expert guidance on property valuation and documentation to maximize your loan amount and ensure smooth processing.

Legal Support

Complete assistance with legal documentation, property verification, and compliance to ensure hassle-free loan approval.

Quick Processing

Streamlined process with dedicated relationship managers to ensure faster approvals and timely disbursements.

Transparent Process

Complete transparency in charges, terms, and conditions with no hidden fees or surprise costs throughout the loan journey.

End-to-End Support

Comprehensive support from application to disbursement and beyond, including loan servicing and customer care assistance.

LAP with Government Schemes

Leverage LAP alongside government-backed schemes for enhanced benefits

CGTMSE Coverage

For MSMEs needing collateral-free loans, LAP can act as additional security for higher loan amounts under CGTMSE schemes.

SIDBI Assistance

LAP can be combined with MSME financing schemes from SIDBI for business expansion and industrial development projects.

PMEGP Funding

Use LAP funds as margin money for government-subsidized loans under Prime Minister's Employment Generation Programme.

State Subsidies

Some state governments offer subsidies when LAP is used for setting up industries or infrastructure development projects.

Unlock Your Property's Value Today!

Get the lowest interest rates on loan against property with flexible repayment options. Transform your property into a powerful financial tool for growth and prosperity.

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