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Loan against property
  • Interest Rates up to 8%

  • 15 Days Disbursal Policy

  • Flexible Repayment Option


A Loan Against Property (LAP), often known as a mortgage loan, is an amount secured by an asset that is kept by the lender until the loan is repaid. This property could be residential, commercial, or industrial. You can get a large loan amount with a low-interest rate starting at 8.20 percent p.a. with a property loan. Lenders often approve a mortgage loan between 50% and 70% of the property's market value, which you may easily repay over the course of 20 years in EMIs. LAP Loans, or loans against property, are similar to unsecured personal loans in that they can be used for both personal and business objectives other than speculative.

The benefits of a loan against property

The benefits of loans against property vary across different lenders and loan schemes. However, some of the common mortgage loan benefits are as below:

  • Flexible End Use: Like a personal loan, a loan against property can be used for both personal and business purposes other than any speculative use
  • High Quantum of Loan: A mortgage loan is secured against a high-value asset, which gives you access to a high loan amount, helping you meet your high-end expenses with ease
  • Balance Transfer Facility: A mortgage loan also comes with the feature of balance transfer, allowing you to refinance your existing mortgage loan to another lender giving lower interest rate or better loan terms
  • Tax Benefits: Interest paid for the loan against property provides tax benefits under Section 37 (1) of the Income Tax Act, 1961. If the loan amount is used for financing a new house purchase, the interest paid on the loan will get you tax benefit of up to Rs. 2 lakh under Section 24 of the Income Tax Act
  • Low-Interest Rate: The interest rate on a secured loan is lower than the interest rate on an unsecured loan. This makes loan against property a cheaper and a better alternative to personal loans
  • Flexible Tenure: The tenure of loan against property usually extends to 20 years, giving you the benefit of lower EMIs and greater flexibility in repayment

Rate of interest for loan against property

The interest rate is a major determinant of the entire cost of your property loan. Because a loan against property is of greater value and has a longer-term, the interest rate can have long-term financial consequences for borrowers. Taking advantage of low-interest rates on a loan secured by real estate will lower the EMI as well as the total interest paid. As a result, potential borrowers should seek a mortgage loan with the lowest available interest rate. Citibank now has the lowest rate on a loan against property, starting at 8.20 percent per annum. The exact rate of interest on your property loan will, however, be determined by your lender, credit profile, and loan size.

Eligibility for loan against property

You must meet the required eligibility conditions to qualify for a loan against property. While the eligibility criteria for obtaining a loan against property vary per source, the following are some typical requirements that need to be met:

  • Residential Status: Resident Indian and Non-resident Indian
  • Minimum Age Limit: 18 years
  • Maximum Age Limit: 70 years
  • Employment Type: Salaried, Self-employed Professional, and Self-employed Non-professional
  • Minimum Salary: At least Rs. 12,000 per month
  • Net Annual Income: At least Rs. 1.5 lakh per annum
  • Work Experience: At least 1 year in the current organization
  • Eligible Loan Amount: Up to Rs. 25 crore
  • Loan to Value: Up to 75% of property value
  • Credit Score: Preferably 750 and above
  • Property Type: Residential, Commercial, and Industrial

Use a loan against property EMI calculator before applying for a mortgage loan to figure out how much EMI you can afford for a certain loan amount, interest rate, and term. Your monthly costs should not be impacted by your loan against property EMI. When you've found an EMI, loan amount, and tenure that you like, click the Apply Now button to start the loan against property application process.

Documents required when applying for loan against property

Lenders need a list of documents when you apply for a mortgage loan in order to analyze your loan repayment capacity and confirm that any information you provide is accurate. This list of documentation will vary from one lender to the next. It may also differ depending on your scheme, kind of resident, and type of job. However, the following are the most frequent documents needed to apply for a loan against property:

  • Duly filled loan against property application form
  • Passport size photographs
  • Proof of Identity (Passport Copy /Voter ID card /Driving License /PAN Card)Proof of Residence (Ration card /Telephone
  • Bill /Electricity Bill /Rental agreement /Passport copy /Bank Passbook or Statement /Driving License)Proof of Age (PAN Card /Passport /any other certificate from a statutory authority)
  • Bank Statements (Bank statement /Bank Passbook for the last 6 months) OR Last 6 months salary slips.
  • Form 16
  • Income Tax Returns for the last 3 years
  • Processing Fee Cheque
  • Documentation related to the property offered as collateral


Only when the property being mortgaged is owned by more than one person is a co-applicant for a loan against property required. All co-owners of the property must apply as co-applicants in this circumstance.

A property's market value is calculated in terms of how much money it could fetch if sold under current market conditions.

Varying lenders have different requirements for the sort of property that can be used to secure a mortgage. Most banking institutions, however, accept the residential, commercial, or industrial property.

A loan against property usually has a term of up to 15 years. This, however, may differ from one lender to the next.

Yes, several financial organizations provide NRIs with a loan against their property.

No, the property mortgaged to obtain a loan against property must be insured in most situations.