Loan Against Property Guide
Unlock cash from your property with flexible terms and competitive rates
What is Loan Against Property?
A Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to borrow funds. The loan amount is determined by the property value, market conditions, and your repayment capacity.
Loan Amount
₹5 lakhs - ₹5 crores
Interest Rate
6.5-9.5% p.a.
Tenure
5-20 years
LTV Ratio
40-60% of property value
LAP vs Home Loan Comparison
Loan Against Property
- ✓ 40-60% of property value
- ✓ Flexible usage of funds
- ✓ Quick approval (5-10 days)
- ✓ Higher interest rates
- ✓ Existing property required
Home Loan
- ✓ 80-90% of property value
- ✓ Can only buy property
- ✓ Longer approval process
- ✓ Lower interest rates
- ✓ New property purchase
Eligibility & Requirements
Age
25-65 years (at loan maturity)
Income
Monthly income ₹30,000+ (salaried), ₹50,000+ (self-employed)
Employment
Minimum 2 years in current job/business
CIBIL Score
700+ for easy approval
Property Value
₹10 lakhs and above
Property Type
Residential, commercial, or industrial property
Property Status
Owned free property or nearly paid property
Document Requirements
Property documents (title deed, mutation)
Property tax receipts (last 2 years)
Building approval/completion certificate
Identity and address proof
Income proof (salary slip/ITR)
Bank statements (last 6 months)
Property valuation certificate
Insurance policy copy