What Loan Against Property is
Loan Against Property (LAP), also known as a mortgage loan, allows you to raise funds by leveraging residential, commercial or industrial property. Like an unsecured personal loan, LAP can be used for both personal and business needs — with the single exception of speculative purposes.
Banks and HFCs offer LAP for tenures of up to 20 years, and the loan amount can go up to 75% of the property’s market value, depending on the lender and your credit profile. Many lenders also offer a Lease Rental Discounting (LRD) facility, which lets you raise a loan by pledging the rental receipts from your tenants.
Where we come in. Valuation and title are where LAP files stall. Our ex-bankers know which lender’s panel valuer takes a commercial view, and what a legal team will flag before it costs you a month.
Features and benefits
- Lower interest rates — the secured nature of the loan cuts the lender’s risk considerably, so the rate is well below unsecured borrowing.
- No end-use restrictions — consolidate high-interest debt, fund a wedding, expand the business. The money is yours to deploy.
- Longer tenure — up to 20 years, which keeps the EMI affordable relative to the amount borrowed.
- Higher loan amount — lenders typically finance up to 70–75% of property value, so sanctions run far larger than a personal loan.
- Higher chance of approval — the underlying property reduces lending risk, which improves your odds materially.
- Overdraft facility — available with many lenders, giving you liquidity while paying interest only on what you draw.
Interest rates offered by leading lenders
LAP is priced higher than a home loan and lower than anything unsecured. Processing fees vary widely and are worth negotiating — on a large sanction they are real money.
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| State Bank of India | 10.00% – 11.30% | Flat ₹10,000 |
| Bank of India | 10.10% – 12.60% | Up to 1% (₹5,000 – ₹50,000) |
| Indian Bank | 10.00% – 12.75% | 1% of loan amount |
| Bank of Maharashtra | 10.45% – 11.95% | 1% of loan amount |
| Union Bank of India | 10.45% – 13.10% | Up to 1% (min ₹5,000, max ₹1 lakh) |
| Bank of Baroda | 10.85% – 18.60% | Up to 1% (₹8,500 upfront – ₹75,000) |
| UCO Bank | 10.85% – 12.00% | 0.50% (up to ₹2 lakh) |
| HDFC Bank | 9.50% – 11.00% | Up to 1% (minimum ₹75,000) |
| ICICI Bank | 10.85% – 12.50% | Up to 1% of loan amount |
| IDFC First Bank | 9.00% – 16.50% | Up to 3% of loan amount |
| Kotak Mahindra Bank | 9.50% onwards | Up to 1% of loan amount |
| LIC Housing Finance | 9.50% – 11.55% | Up to 1% of loan amount |
| PNB Housing Finance | 10.40% – 12.75% | 0.75% (max ₹1 lakh) |
| L&T Housing Finance | 9.50% onwards | Up to 2% of loan amount |
| Tata Capital | 9.00% onwards | Up to 1.25% of loan amount |
| Federal Bank | 12.60% onwards | 1% of limit (minimum ₹3,000) |
Swipe the table sideways to see all columns.
Rates change. These figures were published in June 2024 and are indicative only. Call us for what a specific bank is quoting today on a profile like yours.
Eligibility criteria
Criteria vary across lenders, but the following conditions apply almost everywhere:
- Residential Status
- Resident Indian and Non-Resident Indian
- Minimum Age
- 18 years
- Maximum Age
- 70 years
- Employment Type
- Salaried, self-employed professional and self-employed non-professional
- Minimum Salary
- At least ₹12,000 per month
- Net Annual Income
- At least ₹1.5 lakh per annum
- Work Experience
- At least 1 year in the current organisation
- LTV Ratio
- Up to 75% of property value
- Credit Score
- Preferably 750 and above
- Property Type
- Residential, commercial and industrial property is eligible. Lenders also weigh the age and condition of the property before accepting it as collateral.
Documents required
Identity & Age
- Passport
- Voter ID Card
- Driving Licence
- PAN Card
- Any certificate from a statutory authority, for age
Residence Proof
- Ration card
- Telephone or electricity bill
- Rental agreement
- Passport
- Bank passbook or statement
Income — Salaried
- Form 16
- Latest payslips
- ITR of the past 3 years
- Investment proofs, if any
Income — Self-employed
- ITR of the last 3 years
- Balance sheet and P&L statement
- Business licence details
- Proof of business address
Property Documents
- Title deeds, including the previous chain of documents
- Nil Encumbrance Certificate on the property
- Approved plan, where applicable
How we handle your file
Property and profile review
We assess the property type, its age and condition alongside your income documents, and give you a realistic view of the amount a bank will actually sanction.
Title and valuation check
Title chain gaps and low valuations are the two things that kill LAP files. We surface them before the application goes in, not after.
Lender matching
Some lenders take a commercial view on self-employed income; others do not. We place the file where its particular shape is understood.
Sanction and disbursement
We follow the file through legal and technical verification to sanction, then through mortgage creation and disbursement.