Call us +91 77 1986 5151

10 Cr

Maximum Loan Amount

20 Years

Max Loan Tenure

0 - 0.25%

Processing Fees

About Loan against Property

Loan against property is a secured loan scheme wherein a borrower can avail loan by pledging property (residential or commercial) as collateral. The capital secured through these loans can be used for various purposes including business expansion, meeting medical expenses, or funding children’s education.

These secured loans are also referred to as mortgage loans and provide you access to a loan amount equivalent to a certain percentage of your property’s market value.

Compare Mortgage Loan Offers

Lender Estimated APR Min. Credit Score Available Terms Monthly Payment

5.90%-15.24%

Estimated APR

660

Min. Credit Score

3 to 7 Years

Available Terms

$300

Apply Now

5.99%-18.99%

Estimated APR

640

Min. Credit Score

3 to 6 Years

Available Terms

$334

Apply now

6.99%-24.99%

Estimated APR

620

Min. Credit Score

3 to 5 Years

Available Terms

$358

Apply now

5.96%-35.97%

Estimated APR

610

Min. Credit Score

3 to 4 Years

Available Terms

$300

Apply now

5.36%-32.97%

Estimated APR

630

Min. Credit Score

3 to 5 Years

Available Terms

$300

Apply now

6.99%-24.99%

Estimated APR

620

Min. Credit Score

3 to 5 Years

Available Terms

$358

Apply now

For what purpose you can take the loan against property

Loan against property is an all-purpose loan that comes with no restriction of end usage of funds. You can use it for varied financial needs including but not limited to:

Debt Consolidation

Multiple loans EMIs can hit hard on your budget. Therefore, consider availing a lower interest rate mortgage loan to clear your outstanding loan and credit card dues. 

Commercial Property Purchase

To facilitate the financial assistance for the purchase of a commercial property a loan against property serves as an ideal option. It can be used for buying or constructing a commercial space including shop, clinic, office, etc.

Child’s Education

Education loan disbursement involves a lot of complexity. In such cases, you can rely on a mortgage loan to fund your child’s educational requirements.

Business Expansion

Establishing or expanding business is a capital-intensive process. For this, you can opt to mortgage your property to cover your business’s financial requirements.

Used Car Purchase

To fulfill your capital needs for a used car purchase, a loan against property serves as the most convenient option.  Fit somewhere else, higher capital, lower interest rate.

Personal Expenses

All high-end personal expenditures such as a wedding, medical emergency, vacations, etc can be financed at a nominal interest rate by securing a property loan.

Various Feature and Benefits of Loan against Property

Loan against property in India is an excellent choice for funding the long term capital needs. Since these loans are sanctioned against property, they come under secured loans and provide ample of benefits including:

LAP_Draft

Overdraft Facility

Mortgage loans enable you to avail overdraft facility whereby you are allowed to withdraw the amount as and when required from your loan account up to an agreed limit for specified loan tenure.

HL_zero

Pre-closure charges

Property loan is one of the simplest loan products. Whether you want to pay all or a part of your loan amount most lenders don’t impose prepayment penalty in case of floating rate mortgage loans.

Longer Tenure

Property loans are generally available for a longer tenure. They have flexible repayments with tenure ranging up to as long as 20 years.

Affordable Interest Rate

High Amount and Affordable Interest Rate

As property loans require you to pledge your property as collateral, they provide you access to the higher loan amount at the affordable interest rate. In comparison to other unsecured loans, the interest charged on mortgage loans is generally lower and ranges between 12% to 15%.

Eligibility Criteria for Loan against Property

A borrower needs to fulfill a simple loan against property eligibility criteria to avail of the loan.

Resident Type

Resident Indian/NonResident India (NRI)/Person of Indian Origin (PIO)

Employment Type

Any Salaried or Self Employed

Credit Score

650 or above with a good credit history

Age

Age of applicant during application and at loan maturity must be in between 21-65 years

Work Experience

For Salaried minimum work experience 1 year For Self-employed minimum business vintage 2 years

Income

Salaried: Min. Monthly Net Salary Rs. 15000 Self-employed: Min. Annual Net Profit Rs. 2-3 lakh

Documents required to apply for the Loan against Property

Loan against property requires you to furnish certain documents. Given below is the checklist of important documents needed to apply for a Mortgage Loan in India.

For Salaried Individuals

  • PAN Card
  • Passport
  • Voter Identity
  • Driving License
  • Aadhaar Card
  • Lease Agreement (if property is rented)
  • Electricity Bill
  • Water Bill
  • Telephone Bill
  • Latest property tax bill
  • INDEX II

For Salaried

  • Last 3 months’ Salary Slips
  • Last 6 months’ Bank Statement, reflecting salary credits
  • Latest Form-16

For Self-employed

  • Income Tax Returns with Computation of taxable Income, Balance Sheet and Profit and Loss account duly certified by a chartered accountant for latest 2 years
  • Bank Statement of individual saving account and company current, CC/OD account for the latest 6 months
  • Tax Audit Report (If entity’s turnover or gross receipts exceed Rs 1Cr and Professionals, gross receipts exceed Rs 25 Lac)
  • Incorporation Certificate
  • Partnership deed in case of Partnership/LLP Firm
  • MOA and AOA (Memorandum and Articles of Association) for the private limited company
  • Latest share holding pattern of the company duly certified by a chartered accountant
  • Educational Qualification certificate for Professionals
  • Business profile
  • Business Continuity Proof
  • Sanction Letter and Loan account statement for latest 12 months if you have any other ongoing loan from banks/financial institutions.
  • Closure letter/NOC from lender for loans that were repaid in the last 3 months.
  • Original list of documents and latest principle outstanding description on the letterhead of the existing lender
  • Sanction Letter and Latest 12 months Loan account statement
  • Photocopy of the property documents
  • Allotment letter, Agreement of Sale or Sale Deed
  • Own Contribution Receipt
  • Bank Account Statement reflecting payments made to seller
  • NOC from builder/society
  • Property Tax Receipts
  • Approved Sanction Plan
  • Conveyance Deed (if new property)
  • Occupancy Certificate (if property is ready-to-move)
  • Property Chain Documents (if resale property)
  • Processing Fee Cheque in favor of ‘Respective Bank or Finance Institution’

For Salaried NRIs

For NRI applicants having an indian resident co-applicant is mandatory. And Documents should be translated into english in case of written in other languages.

  • Passport
  • PIO or OCI Card (If applicant is Overseas Citizen of India)
  • Pan Card
  • Driving License
  • Electricity Bill
  • Telephone Bill
  • Lease Agreement
  • Passport
  • Bank Statement
  • Letter from Employer
  • Property Tax Receipt
  • INDEX II

For Salaried:

  • Salary Slip for latest 3 months
  • Bank Statement of Overseas and Domestic NRE/NRO account for latest 6 months (indicating salary credits, EMI payments)
  • ITR for latest 2 years – Not applicable to NRIs/PIOs located in the Middle East and Merchant Navy Employees
  • Overseas Credit Bureau Report

For self-employed:

  • Income Tax Returns with Computation of taxable Income, Balance Sheet and Profit and Loss account duly certified by a chartered accountant for the latest 3 years
  • Bank Statement of individual and business entity including NRE/NRO account for latest 6 months
  • Overseas Credit Bureau Report
  • Appointment letter or Contract letter
  • HR email-ID or own (employer/company) e-mail ID

For Salaried:

  • Visa
  • Valid work permit
  • Appointment letter/Employment Contract (translated in English attested by the Employer/Indian Embassy/Consulate)
  • Identity Card issued by the current employer
  • Continuous Discharge Certificate

For Self-employed:

  • Valid resident Visa stamped on the Passport
  • Incorporation Certificate
  • Partnership deed in case of Partnership Firm/LLP
  • MOA and AOA (Memorandum and Articles of Association) for the private limited company
  • Latest shareholding pattern of the company duly certified by a chartered accountant
  • Educational Qualification certificate for Professionals
  • Business profile
  • Business Continuity Proof
  • Business address proof
  • Sanction Letter and Loan account statement for latest 12 months if the applicant has any other ongoing loan from overseas and Indian banks/financial institutions
  • Closure letter/NOC from lender for loans that were repaid in the last 3 months
  • Original list of documents and latest principle outstanding description on the letterhead of the existing lender
  • Sanction Letter and Latest 12 months Loan account statement
  • Photocopy of the property documents
  • Allotment letter, Agreement of Sale or Sale Deed
  • Own Contribution Receipt
  • Bank Account Statement reflecting payments made to seller
  • NOC from builder/society
  • Property Tax Receipts
  • Approved Sanction Plan
  • Conveyance Deed (if new property)
  • Occupancy Certificate (if property is ready-to-move)
  • Property Chain Documents (if resale property)
  • Title Deeds, estimation of the construction cost and proof of property is free from legal encumbrance
  • Processing Fee Cheque in favor of ‘Respective Bank or Finance Institution’ from NRE/NRO account

Note: Above listed documents may differ based on country or between lenders. For documents attestation, NRI applicants can approach:

  • Indian Embassy/Consulate General
  • Overseas Notary Public
  • Officials of Branch/Sourcing Units based in India
  • FOs/Representative Offices

Loan Against Property Interest Rate and Other Charges

Charges Minimum Maximum
Interest Rate 6.85% 12.5%
Loan Processing Fee 0% 1.75%
Prepayment in Part or Full/Foreclosure Charges Zero charges for floating rate home loans. And for Fixed rate home loans lenders can levy some charges
Stamping Charges Applicable as per the respective State’s Stamp Act

*NOTE: The levy and rate of fees and charges applicable on your loan is subjected to differ from lender to lender.

KNOW ABOUT CHARGES IN DETAIL

Frequently Asked Questions (FAQs)

You can calculate your eligibility and EMI for a loan using the online eligibility and EMI calculator. To use a calculator, click…

You mortgage both residential and commercial property for availing a loan against property. In the case of residential property, you can pledge your flat, bungalow, apartment, independent house, etc. Alternatively, in the case of commercial property, you can pledge your shops, malls, complexes, or office building.

Here are the factors Banks and NBFCs assess for determining your eligibility for a loan against property:

  • Age
  • Current Income
  • Repayment capacity.
  • Educational qualification.
  • Number of dependants.
  • Spouse’s income (if any)
  • Assets & liabilities.
  • Continuity and stability of occupation.

You can collect your property documents from the loan center within 16 days from the date of your loan account closure.

A home loan is taken to buy or construct a new home. In a home loan, the financed amount is credited to the property seller’s account and the property papers are deposited with the bank as collateral security.

While loan against property is a multipurpose loan. It can be used for funding varied financial needs. In loan against property, the loan amount is credited to the borrower’s account. Moreover, the documents of property which is already owned by the borrower are kept as collateral security with the bank.

A reverse mortgage is a loan product available for homeowners aged 62 or above. Unlike, forward mortgage where borrowers pay monthly installments to the lender, in reverse mortgage you receive the loan amount in monthly installments for the house you own.

Simply, it is a mortgage type wherein the loan is issued against the value of your home. The total loan amount availed remains due and is payable when the borrower moves permanently, sells the home, or dies. In certain instances, heirs can also decide to pay off the mortgage to take over the possession of the home. 

Lease Rental Discounting is a type of term loan acquired by the property owners against the rent received on their leased property. LRD is issued on the basis of mutual consideration between the property owner (borrower), the tenant who has taken the property on lease, and the lending financial institute. Over a period of time rent is regarded as the fixed source of income therefore on the basis of this the property owner is granted a loan. 

 LRD is beneficial, as there is no additional outflow of money, the loan EMIs are recovered directly from the amount collected as rent by the property owner.

Introduced in July 2010, the Base rate was a standard lending concept coined by the Reserve Bank of India. The base rate is the minimum interest rate below which banks are not permitted to issue loans to their customers.

Get a Quote

Now apply for a Car Loan online, All you need to do is provide your details below application form.