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Finance Your Dreams, Secure Your Property

Unlock the value of your property with easy financing.

Overview

A Loan Against Property (LAP) is a secured loan provided by a financial institution with a property as collateral. The property can be a residential house, commercial property, or vacant land owned by the borrower.

Loans

Loan Against Property Overdraft

Loan Against Residential Property

Loan Against Commercial Property

Loan Against Rent Receivables

Loan For Purchase Of Commercial Property

Loan Against Special Property

Commercial Construction

Loan Against Vacant Land

Features

  • Adaptable: costs for marriage, business expansion, and other personal requirements
  • Flexible repayment options include partial payments and balance transfers
  • Flexible tenure: 10-25 years;
  • Attractive interest rate: APR starting at 8.9%;
  • No Part-Payment Fees;
  • Collateral: Can pledge Commercial, residential, and special properties
Fundraising

Eligibility Criteria

Age:
  • NRI salaried person: 23 to 60 years
  • Self-employed person: 25 to 65 years
  • Self-employed professional: 25 to 65 years
  • Salaried person: 21 to 58 years
Income:
  • Self-Employed Individual: Must have a minimum salary equivalent to ₹1 lakh credited through their account.
  • Salaried Individual: Must earn a minimum of ₹25,000 per month, with standard deductions applied through their account.
  • Self-Employed Individual: Must have filed their latest Income Tax Return (ITR).
  • NRI Salaried Individual: Must have a minimum net annual income of ₹3,00,000.
  • Rental Income: Must have a valid rent agreement and the rent amount must be credited through their account.
Credit Score:
  • A credit score of 750 or above is typically considered favorable for approval.
Experience:
  • Self-Employed Individual: Must have a minimum salary equivalent to ₹1 lakh credited through their account.
  • Salaried Individual: Must earn a minimum of ₹25,000 per month, with standard deductions applied through their account.
  • Self-Employed Individual: Must have filed their latest Income Tax Return (ITR).
  • NRI Salaried Individual: Must have a minimum net annual income of ₹3,00,000.
  • Rental Income: Must have a valid rent agreement and the rent amount must be credited through their account.
Ownership of property:
  • All property owners must be co-applicant/guarantor
  • The property should be mortgage-free
  • If the applicant and property owner are different they must be either close relative or Business partners
Loan against property value:
  • LAP against residential property : 50% to 80% of property value
  • Commercial Purchase: 30% to 75% of the property value
  • Lease / Rental property : Up to 75% of the market value of the property.
  • Loan Against Commercial Property: 30% -65% of property value
  • Loan Against Vacant Land: 30%-50% of the market value of the property.
  • Loan Against Special Property : 35%-60% of the market value of the property.
  • Commercial Construction: 50-75% of the market value of the property

Documents Required

Income Documents – Salaried
  • Address Proof
  • ID Proof
  • PAN
  • Form 16
  • Employee ID Card
  • Salary Slips for the last 6 months
  • Bank Account Statement for the last 6 months
  • Proof of Employment Duration
Self-Employed Individuals
  • Address Proof
  • ID Proof
  • PAN
  • Company PAN Card
  • Trade License
  • Registration Certificate for Shops, Factories or Other Establishments
  • GST Registration Certificate
  • Business Constitution Proof
  • Business Address Proof
  • ITR & Financial Statements for the last 3 years
  • Bank Account Statements for all business accounts for the last 12 months
  • GST Returns
Rental Income
  • Proof of identity and address;
  • A 12-month bank account statement showing rent credited
  • A valid lease or rent agreement
Self-Employed Professional
  • ID and Address Proof
  • PAN
  • Company PAN Card
  • Trade License
  • Establishment Registration Certificate for Shops, Factories, or Other Establishments
  • GST Registration Certificate
  • Proof of Business Constitution
  • Business Address Proof
  • ITR and Financial Statements for the Last 3 Years
  • Bank Account Statements for All Business Accounts covering the Last 12 Months
  • GST Returns

Fees & Charges

Interest Rate:

Home loan interest rates starting from 8.5% onwards

Other Fees
  • Processing Fee
  • Login Fee
  • MODT Fees
  • Charges for Documentation: Penal Charges
  • Penal Charges
  • EMI / Cheque Bounce Charges
  • Legal Fee (if applicable)
  • Technical Fee (if applicable)
  • Other Notarization Charges

Frequently Asked Questions

A Loan Against Property (LAP) allows individuals to borrow money by using their property as collateral, providing access to funds for various purposes with potentially lower interest rates than unsecured loans.

Lenders providing Loan Against Property (LAP) generally accept both residential and commercial properties as collateral, including houses, flats, apartments, shops, offices, and industrial units, as long as the property title is clear and free from legal disputes. But the Loan to Value ratio (LTV) is different based on property type.

A home loan is specifically for purchasing, constructing, Extension ,or renovating a residential property, while a Loan Against Property (LAP) allows you to use your existing property as collateral for funds that can be used for various purposes, both personal and business.

The lowest interest rates for Loan Against Property (LAP) typically start around 9% per annum, but can vary based on the lender, your credit profile, and the property used as collateral.

Lenders use the LTV ratio to determine the loan amount, which is the percentage of the property's value that can be borrowed . You can typically secure a Loan Against Property (LAP) for a loan amount ranging from 50% to 75% (or even up to 80%) of your property's current market value, depending on the lender and the property's characteristics. Also the eligibility based on customers repayment capacity .

Yes, you can typically obtain a Loan Against Property (LAP) even if your property generates cash rental income, as lenders generally assess the property's value and your repayment capacity rather than solely relying on the income source

Yes, you can usually prepay or foreclose your Loan Against Property (LAP) before the tenure ends, but it's crucial to check your loan agreement for any prepayment penalties or charges, and understand the process.

Foreclosure fees for EMIs (Equated Monthly Installments) are charges levied by lenders for early repayment of the loan, typically ranging from 2% to 5% of the outstanding principal amount.

Yes, you can pledge your parents' property as collateral for a Loan Against Property (LAP), but it depends on the lender's policies and the property's eligibility

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