A loan against property or a property loan is also known as a secured loan as one gives the bank/lender security in the form of a house, land or other property as collateral for the loan. The interest rates on such loans are generally low as the bank/lender can always sell the property to settle the loan if the customer fails to repay it. 

The loan amount is generally around 40 per cent to 60 per cent of the property's market value. Some banks offer till 70 per cent of the property’s market value. Documents for the ownership of the property have to be submitted to the bank/lender along with other basic documents to get the loan approved and sanctioned.

The loan amount is then transferred to the customer’s bank account directly. The ownership of the property is under the bank until the loan is repaid completely. Then, the property is given back to the customer along with all the documents.

Advantages of a property loan:

1. Property loans usually have a low interest rate that start at just 8.75%

2. Income proof is not required as it is a secured loan

3. People who have a poor credit score can also apply for a property loan as it is a secured loan

4. Unemployed individuals in need of urgent money can resort to a property loan as the risk factor to the lender is low since the collateral is provided

5. Tenures range from 5 years to 15 years in most cases. 

6. There is flexibility of end use. This means that one can utilize the money for any purpose including but not limited to a medical emergency, traveling with friends or family, organizing a wedding and upgrading a home. 


1. One must be 21 years of age to apply 

2. Must have a good relationship with the bank

3. Must be salaried or self-employed 

4. Must have the property in one’s own name 

To apply for a property loan, click here.