Are you looking for a secured loan with a low-interest rate? Then, LAP would be the best choice for you. A loan against property is pledging your property in exchange for a loan. The LAP is a secured type of loan offered by banks, NBFCs, and housing finance companies against your commercial or residential property. Property loans come at a lower interest rate than personal loans or business loans.

Be a  salaried or self-salaried person who is employed in a business or professional setup with a pre-owned property can opt for LAP loans. Opting for a  personal loan or any other loan can be a prolonged process where you go through several processes like documentation, KYC, and other formalities. If you’re unable to opt for such a loan, you can go for a LAP or loan against property. Also, the quantum of the loan approved is higher than other available loans. Read on to know how the property loan works.

What Are The Key Features Of Loan Against The Property?

  1. Usage of the property: You can continue to use the pledged property from which the loan has availed the loan.
  2. Cater to Different Needs: You can use a property loan to cater to different purposes like unanticipated medical bills, kid's higher education expenses, wedding loans, or starting your dream business. These loans are a  boon for both salaried employees and self-salaried individuals. The self-employed person striving for funds to develop their businesses can use this facility. Also, the salaried professional facing an unexpected medical emergency that may require long-term treatment, including pricey surgery, or fulfilling their child’s foreign university dreams can use this facility. 
  3. LAP Interest Rates: A loan against your property is cheaper than personal loans. compared to other unsecured loans like personal loans, where the interest rate is high, the  LAP has a lower interest rate.
  4. LAP Repayment Tenure: Loan Against Property has a longer repayment tenure of up to 15 years. Some lenders may provide LAP at the extended tenure of 20 years.
  5. Lower EMIs: Since the tenure of LAP is longer, the EMI of such loans is lower. Thus, this reduces the burden of the loan.
  6. Easy To Obtain: You can easily opt for a LAP as it is a secured loan type and banks are willing to provide the credit. If you own a property, you can mortgage it with a reputable bank to obtain a loan to cater to your business or personal needs.

General Eligibility Criteria To qualify for a Loan Against Property

Minimum Income

The applicant should have a minimum income of Rs.3 lakh per annum.

Age limit of LAP

The minimum age limit to avail of a LAP is 21 years. The maximum age limit is 65 to 70 years.

Employment Type

Salaried or self-employed individuals are eligible to avail of a LAP.

Repayment Tenure

15-20 years.

Interest Rate

The interest starts from 9.80% - 16.50% per annum.

Maximum Loan Amount

Can borrow up to  Rs.25 crore. 

The number of Work Experience

The applicant should have experience of 1-5 years.

Credit Score

Credit score of 750 & above 


Apply for Loan Against Property through CreditMantri