A Loan Against Property (LAP) is one of the most popular financial solutions available to individuals seeking funds for personal or business needs. This secured loan allows borrowers to leverage their property as collateral and unlock its monetary value. Whether you need funds for expanding your business, financing education, medical emergencies, or even consolidating debt, a LAP can be a flexible and efficient way to access liquidity.

A Loan Against Property is a secured loan offered by banks or financial institutions where the borrower pledges their residential, commercial, or industrial property as collateral. The loan amount is typically a percentage of the market value of the property, ranging from 50% to 75%, depending on the lender’s policies and the type of property. Since the loan is secured by the property, it often comes with lower interest rates compared to unsecured loans like personal loans. However, failure to repay the loan could result in the lender repossessing the property.

•   Residential Property: Self-occupied or rented properties.
•   Commercial Property: Shops, offices, or warehouses.
•   Industrial Property: Factories or manufacturing units.
•   Land: Lenders may also accept land parcels, subject to certain conditions.

•   Ownership of the Property: The property should be in your name and free from disputes.
•   Age: Most lenders have a minimum age requirement of 21 years and a maximum of 60-65 years at loan maturity.
•   Income: Proof of a stable income or business turnover is required to demonstrate repayment capacity.
•   Credit Score: A good credit score increases the chances of approval.

•   Identity Proof (Aadhaar, PAN, Passport)
•   Address Proof (Utility Bills, Rent Agreement)
•   Income Proof (Salary Slips, IT Returns, Bank Statements)
•   Property Documents (Title Deed, Property Tax Receipts)
•   Recent Photographs

High Loan Amount

A LAP enables you to borrow a significant amount, usually determined by the current market value of your property. This makes it an ideal solution for substantial financial needs, such as business expansion or higher education.

Flexible Tenure

Lenders offer flexible repayment tenures, which can range from 5 to 20 years. This long repayment period ensures that the Equated Monthly Installments (EMIs) remain affordable.

Attractive Interest Rates

Since the loan is secured, interest rates are generally lower than those for unsecured loans, making it a cost-effective borrowing option.

Multi-purpose Usage

There are no restrictions on the usage of the loan amount. Borrowers can use the funds for personal or professional purposes.

Retain Ownership

Even though the property is pledged as collateral, the borrower retains ownership and can continue to use it during the loan tenure.

Quick Disbursal

Once your application is approved and your property is valued, the loan amount is disbursed quickly, ensuring you can meet urgent financial requirements.