Loan Against Property at a glance
- Loan type
- Secured against your property
- Tenure
- Commonly up to 15 years or more; varies by lender
- Loan amount
- A share of the property's market value; many lenders lend up to about 60 to 70%
- Interest rate
- Usually lower than unsecured loans; set by the lender. Ask in writing
- Documents
- KYC, income proof, bank statements and property papers
- Best for
- Property owners needing a larger amount for business or personal needs
Indicative guide. The lender decides final amount, tenure, rate and eligibility.
What is a loan against property?
A loan against property (LAP) lets you borrow by mortgaging a property you own, without selling it. You keep living in or using the property while you repay in monthly instalments over a long tenure.
Because the loan is secured, lenders can offer larger amounts and often lower rates than unsecured loans. The trade-off is serious: if you stop repaying, the lender can take legal action against the property. Borrow only what you can service.
Features and benefits
Larger amounts
Access more funds than most unsecured loans allow.
Longer tenures
Spread repayment over many years for smaller EMIs.
Keep using the property
You continue to live in or operate from it.
Flexible end-use
Business expansion, education, medical needs or other large expenses, subject to lender rules.
Lower rates than unsecured loans
Security usually brings down the rate, though it still varies by lender.
Property types
Residential, commercial and some industrial properties are accepted by many lenders.
Who can apply? Eligibility criteria
- Owner or co-owner of a property with a clear, marketable title
- A property type and location that the lender accepts
- Age usually 21 to 65 years
- Stable income, salaried or self-employed, to support the EMIs
- Good credit history
- Property free from disputes and dues
The lender checks both you and the property. A clean title and complete papers speed things up.
Documents required
Applicant
- Identity and address proof
- Income proof (salary slips or ITR)
- Last 6 to 12 months' bank statements
- Business proof, if self-employed
Property
- Sale deed or title deed
- Previous chain of ownership documents
- Property tax receipts and utility bills
- Encumbrance certificate
- Approved map or building plan, where applicable
- Society or authority NOC, where applicable
The lender may ask for more documents depending on your profile.
Loan Against Property EMI calculator
Try different amounts, rates and tenures to see what monthly instalment you can manage.
Estimate only, using the rate you select. Your actual rate, fees and EMI are set by the lender.
How to apply
- 1
Tell us your need and property
Share the property type, location and the amount you want.
- 2
We compare lenders
We find lenders that accept your property and profile.
- 3
Valuation and legal check
The lender values the property and verifies the title and papers.
- 4
Sanction and disbursal
Sign the agreement after reading every term, and the loan is disbursed.
Interest rates and charges
We do not quote a single rate here because it depends on the lender and your profile. Ask for the rate and every fee in writing before you proceed.
| Interest rate | Depends on your profile, the property and the lender; floating and fixed options exist. |
|---|---|
| Processing, valuation and legal fees | These can add up. Ask for a full list of charges before you proceed. |
| Prepayment or foreclosure | Terms vary by lender and by rate type. Check before you sign. |
| Default | If you default, the lender can begin recovery proceedings against the mortgaged property. |
Smart tips before you borrow
- Remember that your property is the security: borrow only what you can repay
- Clear any disputes or dues on the property first
- Compare floating and fixed rates and the prepayment terms
- Keep copies of every document you hand over, and note which originals the lender holds
- Choose the shortest tenure whose EMI you can comfortably afford
Frequently asked questions
How much can I borrow against my property?
Lenders lend a share of the property's market value, commonly in the range of about 60 to 70%, depending on the lender, property type and your income.
Can I use the loan for any purpose?
Many lenders allow broad end-use, including business and personal needs, but some restrict it. Tell us your purpose so we can pick the right lender.
Do I lose my property?
No, you keep ownership and use of it. But it is mortgaged to the lender until you repay in full, and the lender can act against it if you default.
Which properties are accepted?
Many lenders accept residential and commercial property, and some accept industrial. Location, title and legal status all matter.
How does Greaterbhiwadi.com help?
We match your property and profile to suitable lenders, help assemble the property papers and follow up through valuation and sanction.