Loan Against Property : Unlock the value of your property

What is Loan Against Property

A Loan against Property (LAP) is a secured loan, wherein you can mortgage your residential, commercial or special use property to get immediate funds for any purpose, ranging from business expenditure to personal needs. In LAP, the property you own, which has a clear title, is kept with Bank as a collateral or security, to help you get the financial assistance in the form of LAP.

Features of Loan Against Property

Lower rates

Loan against property, being a secured loan, carries a lower rate of interest than an unsecured loan

Higher borrowing limits

Due to its longer repayment tenure, an individual can opt for a higher amount of loan with the same EMI than an unsecured loan

Longer repayment terms

LAP is normally available for as long as 15 years. Thus the burden of cash outflow per month on the individual is lower, enabling him to manage his cashflow cycle better.

Access funds for your financial needs. Apply for a loan against property now.

Loan Against Property End Use

While in the other loan types, the end use of the loan is defined, against a LAP the end use can be a variety, such as:

Benefits of Loan Against Property

Lower interest rate

As the loan is taken keeping the property as collateral, the rate of interest is generally lower when compared to personal loan

Lower to Nil Prepayment Charges

You can close your loan against property by making prepayments towards your loan. Lenders generally don’t charge prepayment charges in case of loan against property.

Easy to get

As these are secured loans, banks are more than willing to provide these loans. Therefore, you won’t find it very difficult to get the property loan.

Longer tenure

These loans are generally available for longer tenure going up to 15 years while the tenure in case of personal loan is generally up to 7 years.

Lower EMI

There is an inverse relationship between tenure and EMI. Longer the tenure lower will be the EMI and vice versa. As these are available for a longer tenure, these become suitable for people who can’t afford to pay higher EMIs. However, it is always advisable that a person should take a loan for the shortest tenure as the interest burden will be lower in the case of short tenure loan.

Tap into your property's equity. Opt for a loan against property for financial flexibility.

Eligibility criteria for Loan Against Property

When you apply for a loan, the bank will assess whether it can give you the amount that you desire. The Bank/NBFC will check your eligibility to take the said loan amount based on the following criteria:


Income of the applicant

The bank will assess whether your income is sufficient to pay the monthly EMI , net of all other expenses and financial obligations, if any


Age of the applicant

Age of applicant is important because the bank expects you to be paying your EMI within your working age, out of your monthly earnings. Hence the tenure of the loan is limited to the expected retirement age.


Value of property

A bank can recover its financed amount by sale of the property in question, if there is default in repayment of the loan. Hence, banks normally provide finance only upto 70-75% of the value of property being mortgaged, so that appropriate buffer is maintained to provide for price fluctuation and depreciation of the property over the period of the loan.


Existing Liabilities (if any)

If the applicant has any existing loans or any other financial obligations on a monthly basis, then the loan amount sanctioned reduces, because the EMI paying capacity on the new loan is reduced by the existing liability amount.

How can Dealplexus help you in your LAP application process

If you are looking for a LAP for yourself or for your client, you may simply raise a query on, providing your name, contact details and amount of loan required. Our team shall connect with you to understand your priorities which could be any of the following:

Maximum loan amount

You may be looking to get maximum loan amount irrespective of the rate of interest

Lowest Interest rate

Your first choice may be to take home loan from a Bank which offers the lowest interest rate

Minimum processing fee

At times you may want to choose a financing institution with minimum or Nil processing fees

Quick disbursement

You may be looking to get a quick disbursal of loan due to some urgency

Long repayment tenure

Some want to maximise the loan amount or want to pay smaller amount of EMIs per month. In that case, the first choice is the bank or NBFC which is offering the highest loan tenure.

Online process

You may want to choose a financing partner who offers an online application facility to minimise the paperwork and time for processing.

Having discussed with you your priorities, we will identify the banking/financing partner who best meets your needs and accordingly help you to file application with that bank. Our partnership with multiple banks and NBFCs enables us to give you a financing partner of your choice

Documents Required for Loan Against Property

Typically the following documents are required to be submitted to the lending institution while applying for a loan against property:

  • Proof of identity – This should be an official document which contains your name and photograph. Could be either your driving license, passport, voter’s ID, PAN card, Employee ID (if the company is registered), etc.
  • Proof of residence– A document that verifies your residence address could be either your phone / internet bill, rental agreement, bank account statement, gas bill, electricity bill etc.
  • Bank statements of last 6 months
  • Salary Slips of last 3 months (for salaried individual) and financial statements (i.e Profit and Loss a/c and Balance Sheet (for business applicants) for last 3 years
  • Income proof – This can be your ITR/Form 16 of last 3 years
  • Property Documents

For more detail on documents required or the process, you may connect with our support team at :

Frequently Asked Questions

A Loan against Property (LAP) is essentially a type of secured loan where a borrower can obtain financial assistance by pledging their residential or commercial property as collateral

Acquiring a loan against a property, commonly known as a mortgage loan, can be obtained from various financial institutions such as banks, credit unions, and mortgage companies. The lender will assess the property's value and the borrower's creditworthiness before providing the loan amount.

In India, the interest rate for a loan against property varies depending on several factors. Banks and financial institutions in India provide loans whose interest rates are regulated by the Reserve Bank of India. Loans against property in India are usually charged an annual interest rate between 8% and 15%. The interest rate is influenced by factors such as the borrower's credit score, the value of the property offered as collateral, and the purpose of the loan.

In India, many banks provide a secured loan known as loan against property (LAP), which requires collateral in the form of your property. The interest rates and terms offered by different banks may differ.

However, the best rates offered on loan against property (LAP) by several banks in India are PNB Housing Finance, HDFC Bank, ICICI Bank, Axis Bank, and IDFC First Bank. These banks’ interest rates on LAP range from 8.25%-12.00%, depending on factors like property value, borrower profile, and loan tenure.

Indeed, it is possible to lend money against property as a form of secured lending. This type of lending usually involves a borrower pledging their property as collateral for the loan. The property can be commercial or residential, and the borrower must have equity in the property to be used as security for the loan.

It is possible to secure a loan on 100% of a property's value, but this is subject to certain criteria being satisfied. Generally, lenders are hesitant to grant loans of this nature because of the potential risks involved.

The concept of securing a loan on 100% value of a property is called a loan-to-value (LTV) ratio, which is the ratio between the value of the property and the amount of financing that is requested.

The documentation process for LAP includes the preparation of bid documents, request for proposals (RFPs), and contractor agreements. The bid documents should include detailed information about project timelines, budget, technical specifications, and evaluation criteria. RFPs (request for proposal) should also be prepared following a detailed selection process and include provisions for pricing, delivery, quality control, and contract performance

The maximum term for a loan against property can vary depending on the lender and specific loan product being offered. However, it is common for these loans to have terms ranging from 10 to 15 years.

When considering whether taking a loan against property offers tax benefits, the answer depends on the purpose of the loan. If the loan amount is used to fund a business, then the interest paid on the loan is considered deductible as a business expense under Section 37 of the Income Tax Act.

On the other hand, if the loan is taken for personal purposes such as high-value expenses such as education, medical expenses or marriage, then there is no tax deductions allowed.

For individuals who own a house that is rented out, taking a loan against that property offers tax benefits as well. In this instance, the interest paid on the loan is considered eligible for deduction under Section 24 of the Income Tax Act.

Certainly, it is possible to close a loan against property before the end of its tenure. However, it is essential to note that lenders may charge a prepayment penalty for early closure of the loan. Moreover, before closing a loan against property, it is necessary to check the terms and conditions of the loan agreement to ensure that there are no hidden charges or clauses that may affect the closure process.

Yes, It is indeed possible for salaried employees to obtain a loan against property (LAP). LAP is a secured loan that is granted by a lender against the value of an immovable asset such as a plot, house or commercial property. Salaried employees who own such an asset can use this asset as collateral to secure the loan

To ensure that the document process for a home loan is successful, it is important to work closely with a knowledgeable and experienced professional like Dealplexus who can help guide you through the various requirements and procedures involved. This may include working with a mortgage broker, financial advisor, or other professional who can help you prepare and submit the necessary documents in a timely and accurate manner.