LOAN
AGAINST PROPERTYLAP loan can be availed by salaried professionals, self-employed individuals and also those who have a stable source of income such as rental income. A minimum income criterion applies to ensure repayment capacity.
A Loan Against Property (LAP) allows borrowers to leverage the value of their residential or commercial property and obtain funds for business expansion, debt consolidation, education, medical emergencies, or other personal and professional needs.
Features of Loan Against Property:
The loan is secured in nature.
Available only against clear and marketable property.
Long repayment tenure ranging from 7 to 15 years.
Lower interest rates compared to unsecured loans.
Funds can be used for personal or business purposes.
Ideal for debt consolidation and business expansion.
Higher loan eligibility based on property value.
Can be structured as overdraft or dropline overdraft.
Documents required:
Income Proof
Income Tax Returns with Computation
Bank Statement
Last 12 Months Bank Statement
Property Documents
Property Related Documents
Title Deeds
Original Title Deeds of Property
Property Tax
Latest Property Tax Receipt
NOC
NOC from Housing Society
FAQS ON LOAN AGAINST PROPERTY
Salaried professionals, self-employed individuals and people with stable income sources such as rental income can avail LAP.
Home loans are meant for buying or constructing a house, while LAP allows borrowing against an already owned property for multiple purposes.
Yes. LAP can be used for personal, professional or business requirements.
Yes. Many borrowers use LAP to consolidate higher-cost loans into a lower-interest secured facility.
Typically 50%–70% of the market value depending upon property type, borrower profile and lender policies.
Yes. Many lenders offer overdraft facilities where interest is charged only on the utilized amount.
Yes. Lease Rental Discounting (LRD) is a popular product where rental income is considered while evaluating eligibility.
Generally no direct tax benefits are available as in home loans, though interest may be claimed as a business expense where applicable.
Yes, subject to lender approval and closure or transfer of outstanding dues.
Most private banks do not fund vacant plots, though some nationalized banks may consider them.
Some lenders may consider industrial properties based on structure, valuation and lending policies.