A Loan Against Property (LAP) is one of the most powerful financial tools available to individuals and business owners. It allows you to unlock the value of your property while still retaining ownership, providing access to large amounts at relatively lower interest rates.
In this blog, we’ll cover everything you need to know about LAP, including benefits, eligibility, documents, and how it compares to other loans.
A Loan Against Property is a secured loan where you pledge your residential, commercial, or industrial property as collateral. The lender grants you a loan based on a percentage of the property’s market value—usually 60% to 75%.
You can use this loan for:
Business expansion
Higher education
Medical expenses
Debt consolidation
Weddings or major life events
Lower Interest Rates: Since the loan is secured, the interest is usually lower than personal loans.
Higher Loan Amount: Based on property value, you can get ₹5 lakhs to ₹5 crores or more.
Flexible Tenure: Repayment periods can extend up to 15–20 years.
Continue Using the Property: You retain ownership and can keep living in or using the property.
Loan Against Property is available to:
Salaried individuals
Self-employed professionals
Business owners
Property owners with clear titles
Basic eligibility criteria:
Age between 21 and 65
Steady income source
Clear and marketable property title
Good credit score (usually above 650)
For Salaried Individuals:
Aadhaar & PAN Card
Salary slips (last 3–6 months)
Bank statements (last 6 months)
Property documents with title deed
For Self-Employed/Business Owners:
Business proof (GST, registration)
ITR for last 2–3 years
Profit & Loss statement
Property documents
The loan amount depends on:
Property market value (evaluated by the lender)
Your income and repayment capacity
Outstanding loans or EMIs (if any)
Most banks and NBFCs offer 60–75% of the property’s value.
| Feature | Loan Against Property | Personal Loan |
|---|---|---|
| Collateral | Required (property) | Not required |
| Interest Rate | 8%–11% (approx.) | 11%–24% |
| Loan Amount | Higher (₹10L – ₹5Cr) | Lower (₹50K – ₹25L) |
| Tenure | Up to 15–20 years | Up to 5 years |
| Processing Time | Longer (5–10 days) | Faster (1–3 days) |
Overestimating your property’s value
Ignoring foreclosure/prepayment charges
Not reading the loan agreement carefully
Missing EMI payments (can lead to property loss)
A Loan Against Property is a smart way to raise large funds without selling your assets. It combines the affordability of secured loans with the flexibility of personal financing.
But as with any long-term financial commitment, make sure to borrow responsibly and repay on time to avoid risks.
At [Your Company Name], we help you unlock the power of your property with transparent LAP options, expert advice, and fast approvals.
Apply now or talk to our loan specialists today.
