What is a Loan Against Property (LAP)?

A Loan Against Property is a secured loan where you pledge your residential, commercial, or industrial property to the bank or NBFC in return for a loan.

You can use the funds for:

• Business expansion

• Medical expenses

• Education

• Debt consolidation

• Personal needs (not for speculative purposes)

Eligibility Criteria

1. Age:

   • Salaried: 21 to 60 years

   • Self-employed: 25 to 65 years

2. Income:

   • Must meet minimum income criteria (varies by lender)

3. Ownership of Property:

   • Property must be owned by the borrower (residential or commercial)

4. Credit Score:

   • Preferably above 700

Documents Required

For Individuals:

• Aadhaar & PAN Card

• Latest salary slips (for salaried) or ITRs (for self-employed)

• Address proof (utility bill, voter ID, etc.)

• Property papers: Sale deed, title deed, tax receipts

• Bank statements (last 6–12 months)

• Form 16 (if salaried)

For Businesses (if applicable):

• Business registration proof

• GST registration

• Income Tax Returns (2–3 years)

Types of Property Accepted

• Residential (self-occupied or rented)

• Commercial (shops, offices, etc.)

• Industrial property (in some cases)

• Land with clear title (in some cases)

Loan Process

1. Check eligibility (online or at bank)

2. Apply (online or in branch)

3. Submit documents

4. Property valuation and legal check

5. Loan approval (based on eligibility and property value)

6. Loan disbursement

Loan Amount & Tenure

• Loan amount: Up to 60-75% of the property’s market value

• Tenure: Up to 15-20 years

• Interest rate: Around 9% to 12.5% (varies by bank and profile)

Top Banks Offering LAP

Tips

• Choose lower tenure for lower interest payout

• Compare offers from different lenders

• Maintain a good credit score

• Ensure property papers are clear and updated