A Loan Against Property (LAP) allows you to unlock the value of your real estate without selling it. Whether you need funds for business expansion, education, medical emergencies, or debt consolidation, LAP provides a cost-effective solution with lower interest rates than unsecured loans.
This guide covers everything—eligibility, interest rates, top lenders, DSA partners, and risks—to help you make an informed decision.
📌 What is a Loan Against Property (LAP)?
A secured loan where you pledge your property (residential/commercial/industrial) as collateral. You retain ownership while the lender holds a lien until repayment.
🏘️ Eligible Property Types
| Property Type | Eligibility |
|---|---|
| Self-occupied residential | ✅ Yes |
| Rented residential | ✅ Yes |
| Commercial property | ✅ Yes |
| Industrial property | ⚠️ Depends on lender |
| Vacant land | ❌ Rarely accepted |
💰 Key Features of Loan Against Property
| Feature | Details |
|---|---|
| Loan Amount | ₹5 lakh – ₹10+ crore |
| Loan-to-Value (LTV) | 60%–75% of property value |
| Interest Rate | 8.5%–15% p.a. (fixed/floating) |
| Tenure | Up to 15–20 years |
| Processing Time | 5–10 working days |
| Prepayment Charges | 0%–5% (varies by lender) |
🔹 EMI Example:
- Loan: ₹50 lakh | Rate: 10% | Tenure: 15 yrs → EMI: ₹53,728
(Use an EMI calculator for precise estimates.)
✅ Common Uses of LAP
✔ Business expansion
✔ Higher education
✔ Medical emergencies
✔ Wedding expenses
✔ Debt consolidation
✔ Home renovation
🧾 Eligibility Criteria
| Parameter | Requirement |
|---|---|
| Age | 21–65 years |
| Income | Stable salary/business income |
| Credit Score | 700+ preferred |
| Property Ownership | Clear title, no legal disputes |
📄 Documents Required
For Salaried Individuals
- ID & address proof (Aadhaar, PAN, Passport)
- Salary slips (last 3–6 months)
- Form 16/ITR
- Bank statements (6 months)
- Property papers (title deed, tax receipts)
For Self-Employed
- Business registration proof
- ITR (last 2–3 years)
- Balance sheet & P&L statement
- Bank statements (12 months)
- Property documents
🏛️ Top Lenders for Loan Against Property (2024)
| Lender | Interest Rate | Max LTV | Processing Fee | |
|---|---|---|---|---|
| HDFC Ltd. | 8.75%–12% | 70% | 1% + GST | |
| ICICI Bank | 9%–12.5% | 65% | 0.5%–2% | |
| Axis Bank | 9.25%–13% | 70% | 1% + GST | |
| Bajaj Finserv | 9.5%–14% | 75% | 2% + GST | |
| LIC Housing Finance | 9%–12% | 60% | 0.5%–1.5% | |
| Tata Capital | 10%–15% | 70% | 1.5% + GST | |
| IDFC FIRST Bank | 9.5%–13% | 65% | 1% + GST | |
| KreditFin | 10%–16% | 70% | 1.5%–2% | (Emerging NBFC) |
🏆 Top DSA Partners for LAP in India
| DSA | Key Features | Commission | Website |
|---|---|---|---|
| Ruloans | 275+ lenders, pan-India presence | High | ruloans.com |
| Realvalue Finloans | ₹300cr+ monthly disbursals | Competitive | realvalue.loans |
| Lendingkart | AI-based approvals | Fast payouts | lendingkart.com |
| BankBazaar | Digital comparison tool | Transparent | bankbazaar.com |
| Paisabazaar | Data-driven loan matching | High margins | paisabazaar.com |
| KreditFin | Fast approvals, flexible terms | Good for SMEs | kreditfin.com |
(DSAs help negotiate better rates & handle paperwork.)
⚠️ Risks & Considerations
❌ Property seizure risk if EMI defaults occur.
❌ Valuation gaps (LTV is lower than market price).
❌ Longer processing than personal loans.
❌ Prepayment penalties in fixed-rate loans.
🛣️ How to Apply for LAP?
1️⃣ Check eligibility (credit score, income, property value).
2️⃣ Compare lenders (interest rates, LTV, fees).
3️⃣ Submit documents (property papers, income proof).
4️⃣ Property valuation (bank assesses market value).
5️⃣ Loan approval & disbursal (5–10 days).
(Applying via a DSA can speed up the process.)
🏁 Final Verdict: Is LAP Right for You?
✅ Best for: Large funding needs at lower interest rates.
❌ Avoid if: You can’t risk property or need instant funds.
💡 Pro Tip: Compare at least 3 lenders before finalizing. Use DSAs for better deals.
📢 Need Help? Connect with a certified DSA for expert guidance!
📊 Quick Comparison Tool
| Lender | Interest Rate | Max Tenure | Processing Fee |
|---|---|---|---|
| HDFC | 8.75%–12% | 20 yrs | 1% + GST |
| ICICI | 9%–12.5% | 15 yrs | 0.5%–2% |
| Bajaj | 9.5%–14% | 20 yrs | 2% + GST |
| KreditFin | 10%–16% | 15 yrs | 1.5%–2% |
(Rates may vary based on profile.)
📣 Conclusion
A Loan Against Property is a smart way to access high-value funds at lower rates. However, since your property is at stake, choose wisely, compare lenders, and ensure repayment capability
