Loan Against Property (LAP)

A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral to borrow funds. It is one of the most effective ways to raise large amounts of money at a relatively low interest rate for personal or business use.

Key Features

• Secured loan using your self-owned property
• Loan amount typically 50%–70% of property value
• Usage: business expansion, education, medical, etc.
• Long repayment tenure up to 15–20 years
• Lower interest rate than unsecured loans

Eligibility Criteria

• Indian citizen aged 21–65 years
• Ownership of a clear-title, marketable property
• Salaried or self-employed with stable income
• Good repayment history and credit score

Required Documents

• Identity & address proof (Aadhaar, PAN, etc.)
• Income proof (salary slips/ITR)
• Property documents (title deed, tax receipts)
• Bank statements (last 6 months)

Benefits

• Access to large funds with lower interest rate
• Longer repayment periods reduce EMI burden
• Retain ownership and use of the property
• Funds can be used for any personal or business need

Top Lenders Offering LAP

LAP services are offered by major institutions such as SBI, HDFC, ICICI Bank, Axis Bank, PNB Housing, and LIC Housing.

Important Notes

• Ensure property is dispute-free and has clear documentation
• Failure to repay may result in loss of the mortgaged property
• Loan is subject to property valuation and income assessment