Loan Against Property (LAP)
What is a Loan Against Property (LAP)?
A Loan Against Property (LAP) is a secured loan where you mortgage
your residential or commercial property to borrow funds from a financial institution. It lets you unlock
your property's value without selling it, providing access to large sums at relatively lower interest rates.
The property remains in your name and is only held as security by the lender until the loan is repaid.
LAP is ideal for those seeking high ticket loans with longer repayment tenures
and no restrictions on end-use.
Common Uses of a Loan Against Property
- Business Expansion: Raise capital for new ventures or working capital needs
- Education Expenses: Fund higher studies in India or abroad
- Home Renovation: Finance large scale upgrades
- Debt Consolidation: Repay high interest loans or credit cards at lower rates
- Personal Requirements: Marriage, travel, or medical emergencies
Unlike gold or personal loans, LAP offers higher loan amounts and longer terms, backed by your property's value.
Key Features of a Loan Against Property
- Loan Amount: ₹5 Lakhs to ₹25 Crores (or more, based on property value and profile)
- Loan-to-Value (LTV): Up to 60%–75% of the property's market value
- Tenure: Up to 15–20 years
- Interest Rate: Starting @ 9.00% p.a. (varies by lender and risk profile)
- Property Type Eligible: Residential (self occupied or rented), commercial, or plot (as per lender policy)
Eligibility Criteria
- Profile: Salaried, self employed professionals, or business owners
- Age: 23 to 65 years (at loan maturity)
- CIBIL Score: Ideally 700+ for better rates
- Stable Income: Demonstrated ability to repay
- Ownership Proof: Clear title and legal documentation
Documents Required
- KYC: PAN Card, Aadhaar Card
- Income Proof: Salary slips, Form 16, or ITR
- Bank Statements: Last 6 months
- Property Documents: Title deed, chain of ownership, latest tax receipts, approved layout plans
Why Choose Loan Against Property?
- Lower Interest Rates: Secured loan means lower rates than personal loans
- Flexible Tenure: Longer repayment period for comfortable EMIs
- No End-Use Restriction: Use funds for any personal or professional purpose
- Continued Ownership: You retain possession and use of the property
- Top Up Facility: Get additional funding on the same property if eligible
At Loan Bridges, we help you evaluate your property's loan potential and match you with lenders offering the highest loan amount at the most competitive rates. Our advisors guide you through valuation, documentation, legal checks, and approval for a transparent, stress free experience.
