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Loan Against Property (LAP)

A Loan Against Property (LAP) is a secured loan that allows you to leverage your residential or commercial property to meet your financial needs. Whether you need funds for business expansion, education, medical emergencies, or personal expenses, LAP offers a hassle-free way to access substantial funds while continuing to own and use your property.

Why Choose Loan Against Property?

Avail a high loan amount of up to 70% of your property’s market value at lower interest rates than personal loans. Enjoy flexible repayment tenure of up to 15-20 years with multi-purpose usage for business, education, medical needs, or personal expenses. Retain ownership and usage rights of your property while benefiting from easy eligibility for salaried individuals, self-employed professionals, and business owners. Additionally, enjoy potential tax benefits on interest payments under certain conditions.

Types of Properties Eligible for LAP

Types of Properties Eligible for LAP

Commercial properties (offices, shops, warehouses, etc.)

Industrial properties (factories, plants, etc.)

Land/Plots (depending on lender’s policies)

Eligibility Criteria for Loan Against Property

For Salaried Individuals:

  • ✔ Minimum age: 21 years
  • ✔ Maximum age: 65 years (at loan maturity)
  • ✔Minimum monthly income: As per lender’s policy
  • ✔ Stable employment history with a reputed employer

For Self Employed Professionals

  • ✔ Minimum age: 25 years
  • ✔ Business stability: At least 3 years in operation
  • ✔ Financial documents showing steady income
  • ✔ Property ownership with clear legal title

Documents Required for Loan Against Property

For Salaried Applicants:

  • ✔ Identity Proof (Aadhaar, PAN, Passport, Voter ID)
  • ✔ Address Proof (Utility bills, Rental Agreement, Aadhar)
  • ✔Income Proof(Salary Slips, Bank Statements Form 16)
  • ✔ Property Documents (Title Deed, NOC from Society)
  • ✔ Employment Proof (Offer Letter, Employee ID

For Self-Employed Applicants:

  • ✔ Identity & Address Proof (Aadhar, PAN, Passport)
  • ✔ Income Tax Returns (ITR) – Last 2-3 years
  • ✔ Bank Statements – Last 6-12 months
  • ✔ Business Registration Certificate
  • ✔ Profit & Loss Statements, Balance Sheet

How to Apply for Loan Against Property?

Applying for a Loan Against Property is simple and convenient:

1️⃣ Check Eligibility – Use an online eligibility calculator to estimate your loan amount.
2️⃣ Submit Application – Apply online or visit the nearest lender branch.
3️⃣ Document Verification – Provide necessary KYC, income, and property documents.
4️⃣ Property Valuation – The lender assesses the market value of your property.
5️⃣ Loan Approval & Disbursal – Upon approval, funds are disbursed to your account.

Frequently asked questions

The loan amount is based on the market value of your property and your repayment capacity. Typically, lenders offer 50% – 70% of the property’s value as a loan.

Yes, you can avail of a Loan Against Property on a rented property, provided you are the legal owner and have a clear title.

 

 

If you fail to make repayments, the lender may take legal action and auction the property to recover the outstanding amount. However, lenders usually offer restructuring options before taking such steps.

 

 

Absolutely! Many business owners use Loan Against Property to fund business expansion, working capital, or debt consolidation.

 

No, you retain ownership of the property. However, the lender has a charge (lien) on the property until the loan is fully repaid.

 

 

The processing time for Loan Against Property is typically 5-15 working days, depending on document verification and property valuation.