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What is Loan Against Property?

Unlike an unsecured loan, loan against property (LAP) is a secured loan that is given by mortgaging a self-owned property (residential or commercial) with the lender. Typically, LAP is a loan that you can access against residential or commercial property including a house, flat/apartment, office, or a shop. To avail of a loan against property and acquire funding for your prospective business, you need to have a self-owned property with a clear and marketable title. Such a loan can be utilised in meeting business requirements such as the expansion of business, ploughing funds into the existing business to ensure growth, maintain steady cash flow, or even meet short term or emergency business needs. Such a loan helps a small business owner to remain in control of the business, unlike other investments in which lenders may seek to gain part control of the company. LAP is designed to meet such requirements of small businesses and remains one of the critical sources of financing for businesses.

What are the benefits of a Loan Against Property?

Such a loan provides you with easy access to funds in which your existing property is used as collateral. It remains one of the most popular loans because of its long repayment term and low-interest rate. There are critical aspects that are considered in determining your loan eligibility including income, credit history, and the current value of the property.

Features of a Loan Against Property (LAP)


  1. You can get up to 75% of the property’s current market value, as the loan amount. You can borrow between Rs. 1 lakh and Rs. 10 crores under this loan scheme.
  2. A loan against property implies a fixed or a floating interest rate. Currently, the lowest rate of interest on offer is 9.00%.
  3. Both salaried and self-employed individuals can avail this loan.
  4. The loan tenure is between 1 year and 15 years.
  5. Processing fee ranges from 0.50% up to 2% of the total loan amount. You can get exclusive discounts on Processing Fee if you Apply via Loanbaba.
  6. Top-up loan and overdraft facility could also be available









Eligibility Criteria

Your eligibility depends upon your repayment capacity as determined by Financial Institution. Factors like your income, age, qualifications, number of dependants, spouse’s/Co-applicant income, assets, liabilities, savings history, stability, property value and continuity of occupation are considered while computing your eligibility.

Documents Required

1) Salaried

  1. Duly filled application
  2. Identity proof: (Pan Card / Passport / Ration card / Voter Id Card)
  3. Passport size Photographs of all applicants
  4. Address Proof
  5. Latest form 16 and last 3 months salary slips
  6. Last 6 months bank statement of salary account
  7. Existing Loans Sanction letter/repayment track if any

2) Sole Proprietorship / Partnership / Pvt Ltd Company

  1. Duly filled application
  2. Identity proof : (Pan Card / Passport / Ration card / Voter Id Card )
  3. Passport size photographs of all applicants
  4. Business Proof
  5. Latest Address Proof /Business Proof
  6. Last 3 years income tax return (ITR) of firm / Company
  7. Last 12 months bank statement of main operating account of the firm
  8. Audited financials
  9. Certified copies of MOA /AOA / Partnership deed as applicable
  10. Professional qualification certificate , if applicable
  11. Existing loans sanction letters/Repayment track record , if any