Loan Against Property (LAP)
Our Financial Services
What Is a Loan Against Property (LAP)?
A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral to get funds from a bank or financial institution. The loan amount is offered based on the property’s market value, and you can use the funds for business expansion, education, medical needs, debt consolidation, or any other personal or professional requirement. Since the loan is secured, it usually comes with a lower interest rate, higher loan amount, and longer repayment tenure compared to unsecured loans.
Who typically requires Loan Against Property (LAP)?
- Business Owners – For expanding operations, purchasing inventory, managing cash flow, or funding new projects.
- Self-Employed Professionals – Doctors, lawyers, traders, and consultants needing funds for professional or personal use.
- Salaried Individuals – For large expenses like education, home renovation, or wedding costs.
- Entrepreneurs & Start-ups – To raise capital without diluting ownership or seeking investors.
- Real Estate Investors – To leverage existing property for new property purchases or construction.
- People Seeking Lower-Interest Funding – Those who want a higher loan amount at a more affordable rate compared to unsecured loans.
- Borrowers Consolidating Debt – To combine multiple high-interest loans into one low-interest secured loan.
Features and Benefits of Fast-Approved Against Property (LAP) Loan?
Features
- High Loan Amount based on property market value.
- Fast Approval & Quick Disbursal with minimal documentation.
- Long Repayment Tenure typically ranging from 5 to 15 years.
- Flexible Interest Rates with both fixed and floating options.
- Use for Multiple Purposes like business expansion, working capital, education, medical, or personal needs.
- Available for Residential, Commercial & Industrial Properties.
- Balance Transfer Facility to shift existing LAP to a lower interest rate.
- Top-Up Loan Option for additional funding without new paperwork.
Benefits
- Lower Interest Rates compared to personal or unsecured loans.
- Continue Using Your Property while availing funds—no need to vacate.
- Improves Cash Flow for business growth or emergencies.
- Higher Eligibility due to secured nature of the loan.
- Reduced EMI Burden with longer tenure choices.
- Quick Funding During Urgent Needs with fast approval process.
- Stable & Reliable Source of Finance with predictable repayment options.
How to Apply for a Loan Against Property (LAP) Loan: Eligibility Criteria
- Age Requirement: Salaried: 21–60 years Self-employed: 25–65 years
- Income Stability: Regular and stable monthly income to ensure repayment capacity.
- Credit Score: Minimum 650–700 score; higher scores get better rates.
- Property Ownership: Applicant must be the legal owner of the residential, commercial, or industrial property.
- Property Condition & Value: Property must be in good condition and in a lender-approved location. Loan amount depends on 50%–75% of property’s market value (varies by lender).
- Employment/Business Vintage: Salaried: Minimum 1–2 years of job stability Self-employed: 3+ years of business continuity
- Financial Documents: Valid KYC, IT returns, bank statements, salary slips, property papers, etc.
- Existing Debt Obligations: Lower EMIs and better financial discipline improve eligibility.
How to Apply: Step-by-Step
- Check Your Eligibility: Review income, credit score, property type, and financial documents required by the lender.
- Choose the Right Lender: Compare interest rates, processing fees, tenure, and maximum loan amount offered.
- Submit the Application Form: Fill out the LAP application online or offline with basic details.
- Upload/Submit Required Documents: Provide KYC, income proofs, bank statements, property papers, and business documents (if applicable).
- Property Evaluation & Verification: The lender conducts a legal and technical inspection of the property.
- Credit Assessment: Lender checks your repayment capacity, credit history, and income stability.
- Loan Approval & Sanction Letter: If eligible, you receive a sanction letter mentioning loan amount, interest rate, and terms.
- Property Mortgage & Agreement Signing: Sign the loan agreement and complete mortgage formalities.
- Loan Disbursement: After documentation and mortgage registration, the loan amount is released to your bank account.