Unlock Funds From the Property You Already Own — Without Selling It
Loan Against Property gives you a large, long-tenure loan at secured-loan rates — for business expansion, education, medical needs, or debt consolidation — using your residential or commercial property as collateral.
LAP rates from
8.50% p.a.*
Funding up to
75% of value
What is loan against property
Your property's value, put to work — while you keep the property
A Loan Against Property (LAP) is a secured loan where you mortgage a residential, commercial, or eligible vacant-plot property to a bank or NBFC in exchange for funds, while retaining ownership and use of the property. Because it's secured, LAP typically carries lower rates and longer tenures than personal or business loans.
Term Loan
Lump-sum disbursal
The full sanctioned amount is disbursed upfront and repaid via fixed monthly EMIs over the chosen tenure — best when you need the entire amount at once.
Overdraft (LAP-OD)
Draw as you need
A running credit limit against your property. You pay interest only on the amount drawn and can deposit surplus funds to reduce interest — suited to businesses with variable cash flow.
Balance Transfer
Move an existing LAP
Already have a loan against property elsewhere? Transfer the outstanding balance to a lower-rate lender and often top-up additional funds in the same process.
Business expansion
Working capital, new equipment, inventory, or opening a new location.
Higher education
Funding for your own or your child's education, in India or abroad.
Medical emergencies
Large planned or unplanned medical expenses that need quick, sizeable funding.
Debt consolidation
Replace multiple high-interest personal loans or credit card dues with one lower-rate EMI.
Eligibility
What lenders check before approving a LAP
Because the loan is secured, LAP eligibility leans more heavily on your property's title and value than a home loan does — but income and credit still decide your rate.
- ✓Age: 21–60 yearsLoan tenure must typically close before retirement age.
- ✓Work experience: 1+ yearIn your current organisation, with a stable overall employment history.
- ✓Minimum monthly income: ~₹12,000–25,000Varies by lender and city; higher income supports a larger loan.
- ✓CIBIL score: 750+Scores around 650+ may still be considered, usually at a 1–2% rate premium.
- ✓Clear, mortgageable property titleNo legal disputes, clean chain of ownership, approved construction.
- ✓Age: 25–70 yearsSelf-employed applicants typically get a longer repayment window.
- ✓Business vintage: 3+ yearsEstablished, continuing business or professional practice.
- ✓Declared ITR incomeAssessed on filed returns and computation of income, not gross turnover.
- ✓CIBIL score: 750+A poor CIBIL MSME rank for the business can also affect approval.
- ✓Clear, mortgageable property titleResidential, commercial, or an eligible vacant plot within municipal limits.
Loan-to-Value (LTV) Slabs
Loan up to ₹75 lakhUp to 75%
Above ₹75 lakhUp to 65%
Typical tenureUp to 15–20 yrs
LTV is applied to the bank's assessed market value, which can be lower than what you expect the property to fetch on sale.
Documentation
What you'll need to keep ready
LAP involves more property-side paperwork than a typical home loan, since the lender is underwriting an existing asset rather than a fresh purchase.
KYC (Everyone)
- PAN card (mandatory)
- Aadhaar / Passport / Voter ID / DL
- Recent passport-size photographs
- Address proof (utility bill / Aadhaar)
Salaried Income Proof
- Latest salary slips (3 months)
- Form 16 / last 2 years' ITR
- Last 3–12 months' bank statement (salary account)
- Employment / experience certificate
Self-Employed Income Proof
- Last 3 years' ITR with computation of income
- CA-audited balance sheet, P&L, and tax audit report
- Last 12 months' current & savings bank statements
- Business registration / proof of continuity
Property Documents
- Sale deed and complete chain of title
- Approved building plan / sanctioned layout
- Latest property tax receipts
- Encumbrance certificate
If Property Has an Existing Loan
- Existing loan sanction letter
- Repayment / payment track record
- Foreclosure or outstanding balance letter
- List of original documents held by current banker
Co-Applicant / Guarantor
- KYC and income proof, same as above
- Relationship proof with primary applicant
- Recommended to boost eligible loan amount
Note: Exact requirements vary by lender, property type, and whether the property is self-occupied or rented. Share your profile with us and we'll send a checklist customised to the lender we're targeting for you.
EMI Calculator
See your monthly EMI in seconds
Drag the sliders to match your loan amount, tenure, and expected rate.
₹30,00,000
9.50%
15 yrs
₹0
Monthly EMI
Principal
Interest
Total Interest
₹0
Total Payment
₹0
*Indicative calculation for illustration only. Actual EMI, rate, and eligible amount depend on lender policy, property valuation, and your credit profile.
Yearly Repayment Schedule
| Period | EMI Paid | Principal Paid | Interest Paid | Balance Remaining |
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FAQs
Common loan against property questions
A home loan funds the purchase or construction of a property and can only be used for that. A LAP uses a property you already own as collateral to raise funds for any purpose — business, education, medical, or personal — usually at a slightly higher rate and lower LTV than a home loan.
Yes, most lenders accept both self-occupied and rented residential or commercial property, though the rental status and existing lease terms are factored into the valuation and approval.
Some lenders accept vacant residential plots if they're within municipal limits and clearly demarcated with a boundary wall, though eligible loan amounts are usually lower than for a built-up property.
You can still apply — the new lender typically pays off the existing loan as part of processing and takes over the mortgage, or offers a top-up over the outstanding balance. You'll need the existing sanction letter and repayment track record.
Unlike a home loan, LAP doesn't get a blanket interest deduction. Tax benefit generally applies only if the loan proceeds are demonstrably used for business purposes or to acquire/construct another property — a CA can confirm what applies to your specific use of funds.
Choose a term loan if you need the full amount upfront for a one-time expense. Choose an overdraft (LAP-OD) if your funding need is recurring or variable — you only pay interest on what you actually draw, which suits business cash-flow cycles.
Let's see how much you can raise against your property
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Inwealfoney · Loan advisory services. Rates and eligibility are indicative and subject to lender policy at the time of application.