For Proprietorships, Partnerships & Pvt Ltd
Loan Amount up to ₹10 Cr+
Business Loan Against Property, Sized Against Your Real Estate
Independent Business LAP advisory from Inwealfoney. We get your property valued, your financials in order, and your file matched against multiple lenders — so you unlock the largest loan at the lowest rate your property and business can support.
Business LAP rates from
9.00% p.a.*
LTV up to
70%*
What is business LAP
Large-ticket, long-tenure funding secured against property you already own
A Business Loan Against Property (LAP) lets a proprietorship, partnership, LLP, or private limited company borrow against the market value of a residential or commercial property — either business-owned or pledged personally by a promoter/director — while continuing to own and use it. Because it's secured, business LAP carries meaningfully lower interest rates and longer tenures than unsecured business loans, and unlike Cash Credit, it's a term loan disbursed as a lump sum and repaid through fixed EMIs.
Primary Security
Mortgage of Residential/Commercial Property
The property title is mortgaged to the lender (registered or equitable mortgage) for the loan tenure; you retain ownership, occupation, and rental income throughout.
Loan Structure
Lump-Sum Disbursal, Fixed EMI
Unlike Cash Credit, the full sanctioned amount is disbursed upfront and repaid through a fixed monthly EMI over a chosen tenure — usually 10 to 20 years.
Eligible Borrowers
Proprietorship, Partnership, LLP or Pvt Ltd
Individual self-employed borrowers as well as registered firms and companies can apply, with the property owned either by the entity or by a promoter/director.
Property valuation coordination
We line up the lender's empanelled valuer and legal check so there are no surprises on eligible value.
Financials & CMA prep
ITR, audited financials, and CMA data organised in the format each lender's credit team expects.
Multi-lender rate comparison
Your file is matched against banks and NBFCs to compare rate, LTV, and tenure — not just the first offer.
Top-up & balance transfer support
Running a LAP elsewhere at a higher rate? We evaluate a balance transfer plus top-up in one move.
Eligibility
Do you qualify? Criteria differ for individuals vs registered entities
Lenders assess business LAP differently depending on whether the applicant is a self-employed individual/proprietorship or a registered partnership, LLP, or company.
- ✓Age: 25–65 years at maturitySome NBFCs extend maturity age up to 70, especially with a younger co-applicant.
- ✓Business vintage: 3+ years in the same lineProfessionals (doctors, CAs, architects) with an established practice may qualify with slightly shorter vintage.
- ✓Property ownership: applicant or close co-applicantResidential or commercial property, free of legal disputes and mortgageable to the lender.
- ✓CIBIL score: 700+Applies to both the applicant's personal and business credit history.
- ✓Income supports the EMIDeclared income (via ITR) is assessed against a debt/FOIR threshold, typically capped near 50–60% of net income.
- ✓Entity operational: 3+ yearsRegistered partnership, LLP, or private limited company in continuous business.
- ✓Property: entity-owned or director/partner-pledgedA promoter's personal property can secure the company's loan as third-party collateral, with appropriate documentation.
- ✓Board resolution / authorisation requiredA resolution authorising the borrowing and mortgage is mandatory for LLPs and companies.
- ✓Audited financials for last 2–3 yearsP&L, balance sheet, and CMA data reviewed alongside GST returns for turnover consistency.
- ✓CIBIL/CMR of all directors/partners: 700+Individual credit history of every partner or director is checked alongside the entity's own credit report.
Business LAP at a Glance
Loan amount₹10 Lakh – ₹10 Cr+
Interest rate9% – 15% p.a.
LTV (residential)Up to 70–75%
LTV (commercial)Up to 50–65%
TenureUp to 15–20 years
Processing fee0.5% – 1.5% + GST
Actual LTV and rate depend on property type, location, age, and the lender's internal risk grading of your business.
Documentation
What you'll need to keep ready
Business LAP has two document tracks — borrower/entity documents and property documents — both should be assembled before you approach a lender.
KYC Documents
- PAN & Aadhaar of proprietor/all partners/directors
- Passport-size photographs
- Address proof of applicant(s) & co-applicant(s)
Business Registration & Compliance
- Udyam/MSME registration certificate
- GST registration certificate
- Partnership deed / LLP agreement / MOA & AOA
- Board resolution authorising loan & mortgage (LLP/Pvt Ltd)
Financial Documents
- Last 2–3 years' ITR with computation of income
- CA-certified/audited P&L and balance sheet
- CMA data (for higher-ticket entity borrowers)
- Last 12 months' GST returns (GSTR-3B/1)
Bank Statements
- Last 12 months' current/business account statement(s)
- Statements from all operating banking relationships
- Existing loan account statements, if any
Property Documents
- Title deed & complete chain of ownership documents
- Approved building plan & occupation/completion certificate
- Encumbrance certificate (EC) and latest property tax receipt
- NOC from existing lender if property already mortgaged
Existing Credit & Continuity Proof
- Sanction letters of any running loans/CC/OD
- Latest CIBIL/CIR of entity, partners, and directors
- Shop Act licence / trade licence / factory licence
- Latest utility bill in business name
Note: The lender's empanelled valuer and legal counsel will inspect the property and verify title before sanction. Mortgage creation, stamp duty, and registration charges (as applicable in your state) are separate from the loan processing fee — we'll walk you through the full cost breakdown before you sign.
EMI & Eligibility Calculator
Work out your EMI, or your eligible loan amount by property value
Business LAP is repaid through a fixed EMI — very different from a revolving Cash Credit limit. Use the EMI calculator to plan repayment, or switch to the LTV calculator to estimate how much a given property can unlock.
₹50,00,000
10.5%
15 Years
₹0
Monthly EMI
Principal
Total Interest
Principal Amount
₹0
Total Interest Payable
₹0
Total Payment
₹0
Interest Share
*Indicative only, on a reducing-balance basis at a flat annual rate. Actual EMI depends on the lender's rate reset frequency (most business LAP is floating, linked to repo rate/MCLR), processing fee, and any moratorium offered.
₹1,50,00,000
65%
₹0
Residential property typically gets the higher end of LTV (65–75%); commercial and industrial property is usually financed lower (50–65%), and this can shift further with your income and credit profile.
₹0
Net Eligible Loan
Eligible Amount
Retained Equity
Gross Eligible (LTV × Value)
₹0
Less: Existing Mortgage
₹0
Net Eligible Loan
₹0
Status
—
*Indicative only. Final eligible amount is the lower of the LTV-based value and what your income/business cash flow can service as EMI — the lender always applies both tests, not LTV alone.
How the Loan Actually Runs
01
Valuation & legal check
The lender's empanelled valuer assesses market value; a lawyer verifies title and prepares a search report.
02
Sanction & mortgage creation
On sanction, a registered or equitable mortgage is created on the property before disbursement.
03
Lump-sum disbursement
The full approved amount is disbursed to your account (or part-disbursed for under-construction/staged cases).
04
Fixed EMI, with prepayment flexibility
Monthly EMI is debited on a fixed date. For floating-rate loans to individuals and MSE borrowers, RBI rules bar foreclosure/prepayment penalties — confirm this in writing at sanction.
Compare Financing Options
Business LAP vs Cash Credit vs unsecured business loan
The right facility depends on what the money is for — a one-time investment, or day-to-day working capital.
| Parameter | Business LAP | Cash Credit | Unsecured Business Loan |
|---|---|---|---|
| Best suited for | One-time large investment: expansion, equipment, buyout, debt consolidation | Recurring working capital, stock & receivables funding | Quick, smaller-ticket needs without collateral |
| Security | Mortgage of property | Hypothecation of stock & book debts | None (unsecured) |
| Disbursal | Lump sum, one time | Revolving, draw as needed | Lump sum, one time |
| Repayment | Fixed EMI over tenure | Interest on utilised amount; renewed annually | Fixed EMI, shorter tenure |
| Interest rate | 9% – 15% p.a. | 9% – 14% p.a. | 14% – 24% p.a. |
| Typical tenure | Up to 15–20 years | 12 months, renewable | 1–5 years |
| Loan-to-value / limit | 50–75% of property value | ~75% of eligible stock & debtors | Multiple of monthly revenue |
Many businesses run a Business LAP alongside a Cash Credit line — LAP funds the one-time capital need at a lower long-term rate, while CC handles the day-to-day cycle. We can structure either or both against the same relationship.
FAQs
Common business loan against property questions
Both. Proprietorships and self-employed individuals can apply directly. Partnership firms, LLPs, and private limited companies can also apply, with the property either company-owned or pledged by a partner/director as third-party collateral — this needs a board resolution and additional entity-level documentation.
Business LAP is a term loan — the full amount is disbursed once and repaid via fixed EMI over a long tenure, ideal for a one-time investment. Cash Credit is a revolving limit against stock and receivables (not the property itself in most structures), redrawn repeatedly with interest charged only on the utilised balance — better suited to funding a recurring operating cycle.
Yes. If you have an existing LAP running at a higher rate or want additional funds against the same property, a balance transfer plus top-up lets you move to a new lender at a lower rate while adding to your existing outstanding, subject to fresh eligibility and valuation checks.
For floating-rate loans taken by individual borrowers and MSE (micro & small enterprise) borrowers for business purposes, RBI rules prohibit foreclosure and prepayment charges. Fixed-rate loans, and loans to larger entities, may still carry a prepayment charge — always confirm the applicable clause in your sanction letter.
Yes, this is possible as a second-charge LAP. The existing home loan lender retains first charge on the property, and the new LAP lender takes second charge on the remaining value. Not every lender offers second-charge LAP, and the eligible amount is reduced by the outstanding first-charge loan.
Both tests apply and the lower of the two governs the final offer. LTV caps the amount as a percentage of property value; separately, your ITR-based income or entity's audited financials must support the resulting EMI, usually within a debt/FOIR ceiling of roughly 50–60% of net income.
When the loan is used for business purposes, interest paid is generally deductible as a business expense under Section 37(1) of the Income Tax Act, along with certain processing and documentation fees. This is a general position — please confirm treatment for your specific structure with your CA.
Let's find out how much your property can unlock for your business
Share your property details, business vintage, and financing need — we'll coordinate valuation, prepare your documentation, and compare lenders on your behalf, no cost, no obligation.
Inwealfoney · Loan advisory services. Business Loan Against Property limits, LTV, rates and eligibility are indicative and subject to lender policy at the time of application.