Loan Against Residential Property
Loan Against Property, is also known as mortgage loan. This is one of the types of a secured loan as collateral is involved. This means if you need this loan, you will have to hold your property as mortgage with the bank. Any property whether it is commercial or residential, can be used in order to get a loan against property.
The main highlight of the loan against property is that you can get 40-65%* of the property value as the loan amount. Hence if you happen to have more than one property under your name, you can keep the costlier property as collateral. This will help you get a higher loan amount. The lender will evaluate your property and finalize the market value for it. On the basis of that value, you will get the loan amount.
LAP (Loan against Property) can be processed against a Residential property that is already on borrower’s name. LAP is taken for both the personal and business usage. In this case, the mortgaged security is already owned by the borrower.
LAP can be issued in any of the following scenario :
- Business expansion.
- Marriage of son or daughter etc.
- Higher studies loan for son or daughter.
- Medical treatment fund.
- For any vacation like abroad trip etc.
Case studies
Best Personal Loan Interest Rates In India
| Bank Name | ROI | Processing Fees | Loan Amount | Tenure | Institution Type | Best Fit For |
|---|---|---|---|---|---|---|
Anand Rathi Financial Services Limited |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
AAVAS Financiers Ltd |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Aditya Birla Capital |
10% | 1% | 10CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
Avanse Financial Services |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Axis Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Axis Finance |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Bajaj Finserv |
10% | 1% | 10CR | 15 Years | NBFC | Salaried,Self Employed,Professional - OD FACILITY |
Bank of Baroda |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Different Income Categories |
Bank Of India |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Bank Of Maharashtra |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Easy Eligibility Checks |
Canara Bank |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Different Income Categories |
Citibank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Low Interest Rate |
DCB Bank |
11% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Dewan Housing Finance Corporation |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Deutsche Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Edelweiss |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Federal Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Fullerton India |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Below 650 Cibil Cases |
Gic Housing Finance |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Different Income Categories |
HDB Finance |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
HDFC Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Self-Employed Professional |
Hero FinCorp |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
ICICI Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Quick Disbursal |
ICICI Home Finance |
10% | 1% | 10CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
IDFC First Bank |
11% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Loan on Banking sarogate |
IIFL |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
Indiabulls |
10% | 1% | 15CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
Indusind Bank |
10% | 1% | 7CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Jana Small Finance Bank |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
JM Financial |
10% | 1% | 2CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
KIFS |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Kotak Mahindra Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Quick Turnaround Time |
LIC Housing Finance |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Special Offers |
Magma Finance |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Salaried,Self Employed,Professional |
Manappuram Finance Limited |
10% | 1% | 3CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Muthoot Finance |
10% | 1% | 3CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
PNB Housing Finance |
10% | 1% | 15CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Easy Eligibility Checks |
RBL Bank |
10% | 1% | 7CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
SBI |
10% | 1% | 15CR | 15 Years | GOVT PSU | Salaried,Self Employed,Professional - Salaried,Self Employed,Professional |
Shriram Finance |
10% | 1% | 5CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Standard Chartered Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Quick Disbursal |
Suryoday Small Finance Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Tata Capital |
10% | 1% | 10CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Flexible Interest Rates |
|
Tata Capital Housing Finance Limited |
10% | 1% | 7CR | 15 Years | NBFC | Salaried,Self Employed,Professional - Different Income Categories |
Union Bank Of India |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Different Income Categories |
Yes Bank |
10% | 1% | 15CR | 15 Years | BANK | Salaried,Self Employed,Professional - Affordable Interest Rates |
| Bank Name | ROI | Processing Fees | Loan Amount | Tenure | Institution Type | Best Fit For |
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Frequently asked questions
- Customers need a loan for various reasons. You can get a loan against property for any of the below mentioned reasons:
- 1. For funding and expanding your business potential.
- 2. To purchase new property/land by mortgaging existing property
- 3. For marriage
- 4. To fund emergency medical treatments
- 5. To fund higher studies
- 6. To fund a vacation
- 7. For home renovation or expansion
A loan against property has often been confused with personal loans. The reason for this is because that they happen to have features which are distinctly similar to each other. But this is not true. Thus, in order to clear all the confusion between these two loan products, we have created a table below. This table will explain the main differences and help you understand how different they indeed are.
- Personal Loan :
- 1. Personal loan is a type of unsecured loan.
- 2. A borrower can take a personal loan for personal use without any security or guarantor.
- 3. Rate of interest for personal loans is higher.
- 4. A borrower has to pay higher EMIs.
- 5. In order to get a personal loan, the borrower's income defines the value of sanctioned loan amount.
- 6. The repayment tenure for personal loan rages between 12-72 months (1-6 years).
- Loan Against Property :
- 1. Loan against property is a type of secured loan.
- 2. Rate of interest for loan against property is lower.
- 3. A borrower pays cheaper EMIs.
- 4. The approved loan amount for loan against property depends on the borrower's income details as well as value of the property which is being kept as mortgage.
- 5. The repayment tenure for loan against property goes maximum to 180 months (15 years).
The list of documents for availing loan against property changes whether you're a
salaried applicant or a self-employed professional/ businessman. The Loan Against
Property process can be made easier if you know exactly what documents you need to
submit with your application. The documents are filed according to the eligibility
criteria. The list of required documents differs from bank to bank. But we have
given a generic list of required documents below:
No income proof needed for approval.*
- Documents Required for Salaried Applicant:
- 1. You will need to furnish a fully filled and signed application form for a loan against property.
- 2. You will need to furnish a fully filled and signed application form for a loan against property.
- 3. The banks will mention the number of Passport-sized photographs.
- 4. Furnish Identity proof in the form of - Aadhar card, Pan card ,Passport, Driving License, Voter ID card, employee identity card (in case of government employees).
- 5. Please keep a cheque ready which will cover administrative costs/processing fees that will be incurred by the bank in processing this loan application.
- 6. Keep these Address Proofs in handy - Rent Agreements, Bank statements, Ration card, Passport, Driving License, Water/Telephone/credit card bill/ Electricity or Property tax.
- 7. You will also need to arrange for the Age Proofs via - Birth certificate, Secondary school leaving certificate (class 10), Passport, pension payment order or receipt of LIC policy.
- 8. Apart from all this, please arrange for Salary slips of the past 3 months from loan application date.
- 9. Please attaché the Form-16 which will be issued to you by your current employer.
- 10. Get copies of your Bank statements since the past 6 months right from application date towards the loan.
- 11. You will have to furnish Property papers with CC and OC.
Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories.
- Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories :
- 1. Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.
- 2. Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.
- Also, if you are applying as a company, you can avail loan by applying under following entities :
- 1. Partnerships/Propretorship
- 2. Limited Liability Partnerships
- 3. Private Limited Companies
- Other important requirements to avail Business Loan :
- 1. The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.
- 2. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
- 3. Your business must be making profit for last 2 years.
- 4. The age of the applicant should be minimum 25 year and maximum 65 years5. You should have paid your business's Income Tax Returns for last 2 years.
- 5. You should have paid your business's Income Tax Returns for last 2 years.
- 6. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.
