loan-against-residential-property

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 Action
Anand Rathi Financial Services Limited

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AAVAS Financiers Ltd

AAVAS Financiers Ltd

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Aditya Birla Capital

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Avanse Financial Services

Avanse Financial Services

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Axis Bank

Axis Bank

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Axis Finance

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Bajaj Finserv

Bajaj Finserv

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Bank of Baroda

Bank of Baroda

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Bank Of India

Bank Of India

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Bank Of Maharashtra

Bank Of Maharashtra

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Canara Bank

Canara Bank

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Citibank

Citibank

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DCB Bank

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Dewan Housing Finance Corporation

Dewan Housing Finance Corporation

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Deutsche Bank

Deutsche Bank

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Edelweiss

Edelweiss

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Federal Bank

Federal Bank

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Fullerton India

Fullerton India

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Gic Housing Finance

Gic Housing Finance

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HDB Finance

HDB Finance

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HDFC Bank

HDFC Bank

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Hero FinCorp

Hero FinCorp

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ICICI Bank

ICICI Bank

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ICICI Home Finance

ICICI Home Finance

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IDFC First Bank

IDFC First Bank

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IIFL

IIFL

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Indiabulls

Indiabulls

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Indusind Bank

Indusind Bank

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Jana Small Finance Bank

Jana Small Finance Bank

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JM Financial

JM Financial

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KIFS

KIFS

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Kotak Mahindra Bank

Kotak Mahindra Bank

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LIC Housing Finance

LIC Housing Finance

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Magma Finance

Magma Finance

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Manappuram Finance Limited

Manappuram Finance Limited

10% 1% 3CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Muthoot Finance

Muthoot Finance

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PNB Housing Finance

PNB Housing Finance

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RBL Bank

RBL Bank

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SBI

SBI

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Shriram Finance

Shriram Finance

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Standard Chartered Bank

Standard Chartered Bank

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Suryoday Small Finance Bank

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Tata Capital

Tata Capital

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Tata Capital Housing Finance Limited

Tata Capital Housing Finance Limited

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Union Bank Of India

Union Bank Of India

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Yes Bank

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.

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