About Loan Against Property

The loan which is provided against any collateral mortgage property is called Property Mortgage Loan or Loan Against Property. Normally all the private sector and public sector banks are aggressively providing property loans in India. Apart from banks, lots of NBFC are also providing mortgage loans in Pune. Due to high competition in these products, there are lots of advantages to loan customers. They get low-interest rates with higher tenure.

Loan Against Property scheme is a secured personal loan which you can avail by pledging your property as a security or a collateral. These personal loan schemes are also known as mortgage loans. Loan Against Property interest rates range between 8.50% p.a. to 18% p.a. You can avail loans of up to Rs.25 crore for a tenure of up to 20 years with LAP.

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Features & Benefits

The followings are the ways a Loan Against Property can be benefitted:

Secured Loan

The loan is secured against the value of your property. The property acts as collateral, reducing the risk for the lender. This generally leads to lower interest rates compared to unsecured loans.

Loan Amount

The loan amount is determined based on the value of the property you pledge. Generally, you can get a higher loan amount compared to personal loans or other unsecured loans.

Flexible Tenure

The tenure (repayment period) for a Loan Against Property is usually longer compared to other types of loans, often ranging from 5 to 20 years. This allows for lower monthly installments.


The loan amount can be used for a wide range of purposes, giving you the flexibility to address various financial needs without any restrictions.

Eligibility Criteria

To qualify for a Loan Against Property, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a Loan Against Property.


You need to be a Citizen of India with documents to prove your claim.

Occupation and Income

Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.

Credit History

Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.

Banking Relationship

Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.

Market Value of Property

Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.

Title of Property

Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.

Documents Required

Below is some of the basic documents which are required at the time of Loan Against Property

  • Proof of identity/residence
  • Proof of income
  • Property-related documents
  • Proof of Business (for self-employed)
  • Account statement for the last 6 months

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, then have a look at some of the basic FAQs.

A Loan Against Property is a secured loan where you use your property as collateral to borrow money for various purposes, like business expansion, education, medical expenses, and more.

LAP funds can be used for diverse needs, including New Business expansion and growth, working capital, machinery purchase, medical emergencies, debt consolidation, and home renovations.

The loan amount depends on the property's value, usually ranging from 50% to 70% of its market value, determined by factors like property type and location.

LAP interest rates are relatively lower than unsecured loans, and they can be fixed or floating, depending on market conditions, lender policies, and your creditworthiness.