A Loan against property or LAP is a loan given by the lender to the borrower against the property mortgaged. Unlike the unsecured loan, the loan against property involves a security that is the property, which the borrower can mortgage in case the loan is not repaid by the borrower. If you are in need of a significant amount of money and own property, then a Loan Against Property is an attractive and relatively reasonable credit option to consider.

People often view a property as being of value only in bringing in rental income or selling at an appreciated price. It is often overlooked as an asset when raising funds for business or personal expenses. If you are in need of substantial funds, you can unlock the dormant potential of your property and raise funds at a relatively lower cost with this kind of loan.It is a type of mortgage loan in which the market value of the property is calculated and the loan furnished is a certain percentage of the market value of the loan.

Loan against property (LAP) has the low interest rates which can be used for business or personal finance purposes:

• These loans can be used for expansion of the business and meeting the credits of the business and bonafide needs.
• The loans are easy to avail so they can help in case of an urgent medical financing.
• The loans are also useful to facilitate the renovation or repair/extension purposes in the house or flat.
• The loan can be used if there is a marriage in the house.
• The parent can use this loan for sending the child abroad for higher studies.
• One can use the loan to fund a vacation to an attractive tourist destination.

• Lower rate of interest: Loan against property is a secured loan owing to which the rates of interest are lower. Secured loans usually have a lower rate of interest when compared to unsecured loans. In addition to that, if you have a good credit score and credit history, the chances of you getting a loan at a low rate of interest goes up.

• Simple documentation and approval process: The process of documentation and approval of loans is generally simple when it comes to a loan against property. The loan application goes through a comparatively lighter scrutiny as these are secured loans. The property against which the loan is availed acts as collateral in this case. This allows lenders to go forward with an easy documentation process. The approval rates are also usually higher in these cases.

• Flexibility in repayment of the loan: Most loans against property offers a flexible loan repayment tenure. On the basis of the lender that you choose, you can avail a loan repayment tenure of as long as 20 years. The usual loan repayment tenure generally lasts between 10 to 15 years. This gives you ample time to plan your finances and repay the loan on time.

• Continuous ownership of the property: In case of a loan against property, the ownership of the property is retained with the borrower. When you offer your property as a collateral for a loan, the ownership does not change. This also allows you to sell the property in case you are unable to repay the loan.

• Availability of pre-closure option: You have the option to pre-close your loan against property if you wish to do the same. If the loan that you have availed comes with a variable interest rate, you will not be required to pay any penalties for the pre-closure of the loan. However, you will be required to pay a nominal amount if your loan was on fixed interest rate.

• Optimal utilisation of the property: In case you avail a loan and you have a property which you offer as a collateral, you get to satisfy your financial needs with the loan amount which will be at par with the property. At the same time, you also get to retain your property. You can decide to not sell your property and still avail enough money to meet your requirements. That too at affordable rates of interest.

One can avail tax benefits for loan against property under two sections:

1. Principal repayment under Section 80C: The tax deduction under this scheme is for the repayment of the principal loan amount for the loan against property. The maximum tax deduction under the scheme is ₹150,000. The deduction can be claimed only if the construction of the property is complete, not during the construction.
2. Home loan interest repayment under Section 24: The tax deduction under this scheme is for the repayment of the interest amount for the loan against property. The maximum tax deduction under the scheme is ₹200,000.

Axis Bank offers easy and hassle-free Loan Against Property for loan amounts starting from Rs. 5 Lakhs. Avail loan against residential or commercial property, that you can offer as collateral, at attractive rates of interest.

• Loan Amount Minimum: Rs .5 Lakhs
• Loan Amount Maximum: Rs .5 Crores
• Interest Rate Applicable: Floating
• Maximum Tenure: 20 years

ICICI Bank provides loan against property in a quick, easy and transparent way which is light on your pocket. It facilitates fast processing along with quick disbursal. The rates are affordable to common people with repayment tenure of up to 15 years.

Loan Amount- Rs 10 lakh – Rs .5 crore

Loan type-Loan against property

Age-Minimum: 25 Years,Maximum: 65 Years or retirement age whichever is earlier

Eligible profiles-Salaried & Self-Employed

Tenure-Up to 15 Years

End use-Business and Personal Utility

If you are a customer of State Bank of India and wish to avail a loan so that you can meet your personal needs, then one of the loan schemes you can avail is loan against property. You can pledge your property as a collateral and avail a personal loan in order to meet your financial needs.

• Interest Rate Ranging: up to 10.85%
• Minimum loan amount: Rs.10 lakh
• Maximum loan amount: Rs.7.5 crore
• Minimum repayment tenure: 5 years
• Maximum repayment tenure: 15 years (conditions apply)

HDFC bank offers loans against property at attractive rates of interest. You can use your property as security and receive higher amount to fulfill your personal and business related needs. It is very simple to get a loan against property from HDFC Bank.

• Resident Indians who are salaried or self-employed are eligible for this loan scheme.
• Flexible loan tenures up to 15 years.
• Quick and hassle-free documentation process.
• The borrower can use his/her residential or commercial property as collateral to avail the loan.
• Simple monthly installments repayment options.

• Loans of up to Rs.10 crore.
• Flexible loan tenures up to 20 years.
• Loans offered to borrowers with commercial properties, small and medium enterprises (SMEs), residential plots, or those with a rental income.
• Salaried and self-employed individuals are eligible for this loan scheme.
• IDFC First offers secured loans up to Rs.10 crore.

Do’s

• You need to produce your application in a better way in front of the bank so that your loan gets easily approved.
• Make sure that the end use of your property is evident. The residential properties get loan more easily with high LTV.
• The title deed of the property should be clear and the documents should be upfront, not fake.
• Look at the market reviews of the banks and then, choose the best one who gives the lowest rate of interest and highest Loan to value ratio.

Don’ts

• There are some banks who give loans only for residential properties. So, if you have a commercial property, Do not apply in such banks.
• Some banks give loan only to those businessmen whose business has been in place for the last 10 years. If your business has emerged in less than 10 years, Do not apply for such banks.

• The customer has to visit the website of the financial lender and apply for the loan online.
• The customer support team of the lender will get in touch with the applicant and request for the submission of relevant documents.
• The lender will then verify the documents submitted and then inspect the property of the applicant.
• If the application is approved, then the loan amount will be credited in the bank account of the customer.

At Indian Loan Bazaar portal one can compare different Loan Against Property offers and the interest rate at which loan is offered from various banks.

• No need to visit any lending institution. The entire process is completed while sitting at home.
• The website is user-friendly and provides you with complete information regarding all the Loan Against Property products.
• One can compare offers and other eligibility criteria with different banks to choose the right bank for themselves.
• At Indian Loan Bazaar, interest rates and offers by different bank are totally genuine.
• One can check Loan Against Property eligibility before applying for the Loan Against Property easily on the Indian loan Bazaar website and can get to know whether he/she is eligible for a Loan Against Property .
• You can calculate the EMI of Loan Against Property before availing it
• One can easily apply online for a Loan Against Property product directly through the Indian loan Bazaar website in no time.

Indian loan Bazaar team will provide you end to end guidance with a dedicated customer care team for smoother processing and disbursal of your Loan Against Property.

• Loan Tenure – The repayment tenure determines the interest rate charged by the bank. Shorter the repayment tenure, higher will be the rate of interest charged.
• Credit Score – You must have a credit score of 700 and above if you wish to avail a loan against property at lower rates of interest.
• Type of property – The market value and the type of property determines the interest rate charged by the lender.
• Profile of the applicant – The age, occupation, income, etc. also determines the interest rate charged by the bank.

• Loan against property processing fees –Most banks charge processing fees of 0.50 -1% of loan amount. To get lowest fee, comparison of Loan against property rates, offers and cashback, apply online through Indian Loan Bazaar.
• Loan against property prepayment and foreclosure –Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your loan partially before time, it is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks do not levy any prepayment or foreclosure charges in such situations.
• Special interest rates for specified category of borrowers –Banks launch attractive schemes with low interest rates on loans at regular basis. Hence, always check for offers from multiple banks to get the best property loan interest.

• Offer based on loan amount – You may be surprised to know that in some cases rate of interest on say, a ₹ 30 lakh loan, may be lower than that on a ₹ 29 lakh loan. This is due to different pricing grids of banks and discounts for higher loan amounts that are offered from time to time.
• Discount for tenures – Banks may offer lower loan against property interest rate for certain tenure and it may be useful to check these carefully to be able to get cheapest loan against property.
• Do not fall for marketing gimmicks – It is common for mortgage loan agents and DSA’s to lure customers by quoting a lower mortgage loan rate of interest knowing very well that the final rate will be higher. Always check with authorized representatives and get the rates in writing before giving your documents for processing.
• Do not apply with multiple banks for loans – Remember that every loan application is recorded in your CIBIL report. Too many loan applications at the same time can hurt your chances of getting a loan and even lead to an increase in rate of interest. Multiple applications signal desperation to get loan on the part of the customer.
• Do not apply for loan amount more than what you are eligible for – Use online mortgage loan eligibility calculator to estimate how much loan amount you are likely to be eligible for. Apply for a loan amount that is either less than or upto that to get the cheapest rate of interest. Applying for an amount higher than your eligibility may lead to rejection of your loan application.

1. The person must be a citizen of India or a person of Indian origin.
2. The foremost eligibility criterion is that the borrower must own the property or given it for rent.
3. The person must be working and drawing regular income. He can be salaried, working professional, or a self-employed businessman or entrepreneur.
4. The total income, savings, and the financial constraints like already existing debts will also be considered.
5. A good CIBIL score will help you getting the loan.

• You should be a salaried individual
• Or a professional, self-employed or an income tax assesses, or NRIs with properties or commercial properties in their name or in the name of their parent, spouse, or children
• Minimum net monthly income of Rs.25,000
• Loan under the loan against property scheme should be liquidated before the borrower attains the age of 70 years.

Listed below is the eligibility criteria for ICICI Loan Against Property.

• Available for salaried individuals and self-employed professionals and non-professionals.
• The applicant should be the owner of the property being mortgaged.

The eligibility criteria for HDFC Bank Loan against Property include:

• Salaried professionals working in government or private organizations are eligible.
• Self-employed individuals engaged in different business activities. The bank offers exclusive offers and schemes for self-employed professionals.

• Applicants can be individuals, professionals, sole proprietorships, partnership firms and private limited companies (including closely-held public limited companies) but compulsorily Indian residents
• Applicants should be at least 25 years of age when the loan is sanctioned and at most 60 years of age at the time of loan maturity
• The minimum gross salary or net profit per financial year should be INR 240000 to INR 300000
• The minimum occupational stability for individuals and non-individuals is 3 years, and non-individuals need to have a minimum of 2 years of cash profit

• Application form with photograph of all the applicants with cross signatures.
• Identity proof like Copy of Passport / Driving License/ Voter ID card / ID card issued by employer with signatures.
• Address Proof which should not be more than three months old like Copy of Ration Card / Passport / Electricity or Phone Bill / Rent Agreement / Credit card statements / Property Papers.
• Proof of office address location.
• Proof of educational qualification.
• Proof of the existence of self-service or occupation.
• Income tax returns copy (ITR copy) of the latest three years for individual and business.
• Profit or Loss computation of the latest three years validated by an authorized CA.
• Bank statement of the last 6 months validating regular income for individual and business.
• A cheque on account of processing fees in favour of the bank.
• The documents for property mutually agreed by the bank and the borrower as security.

• Application form with photograph of all the applicants with cross signatures.
• Identity proof like Copy of Passport / Driving License/ Voter ID card / ID card issued by employer with signatures.
• Address Proof which should not be more than three months old like Copy of Ration Card / Passport / Electricity or Phone Bill / Rent Agreement / Credit card statements / Property Papers.
• Proof of office address location.
• Proof of business profile (position in the company).
• Income tax returns copy (ITR copy) of the latest three years for individual and business.
• Profit or Loss computation of the latest three years validated by an authorised CA.
• Bank statement of the last 6 months validating regular income for individual and business.
• A cheque on account of processing fees in favour of the bank.
• The documents for property mutually agreed by the bank and the borrower as security.

• Application form with photograph of all the applicants with cross signatures.
• Identity proof like Copy of Passport / Driving License/ Voter ID card / ID card issued by employer with signatures.
• Address Proof which should not be more than three months old like Copy of Ration Card / Passport / Electricity or Phone Bill / Rent Agreement / Credit card statements / Property Papers.
• Latest salary slips.
• Form 16 or salary certificate showing the total salary and tax deducted from last two years.
• Bank statement of the last 6 months validating regular income.
• A cheque on account of processing fees in favour of the bank.
• The documents for property mutually agreed by the bank and the borrower as security.

You will need to submit copies of the following property documents

• Past title chain – Conveyance deed, sales deed, allotment letter, possession letter
• Copy of approved plan for construction/ extension
• Latest property tax receipt
• Receipt of advance payment towards purchase of property in case of resale or booking with builder

To get a loan against property without income proof, you can consider using any of the following ways:

• You can add a co-applicant who has a good credit history and proper income documents.
• You can explain your income to the bank representative in detail if you do not have an ITR form. The bank statement can prove to be a useful tool in this regard.
• Justify your reason of not filing ITR with a genuine reason, and also consult a tax consultant.
• If you are continuously practicing good banking habits, then it can prove to be in your advantage.
• You can also choose to accept a lower loan to value and avail the loan instead of getting your loan application rejected.

Indian Loan Bazaar is one of the leading DSAs where you can get loan against property at reasonable interest rate without any hassle and stress. We understand your emotions for your home as it is the place where you make best of your memories with your family and near and dear one’s. We also understand the value of your time and the difficulty which you face while the documentation regarding your home loan, hence we try to keep it as minimal as it can be.

Documentation is a very important part, as this is the only way by which lenders can know their customer in a better way. The documentation process regarding a home loan is bit complicated as it as a secured loan. Here you need to give a guarantor and security in form of any of your property paper or anything else, so that we can build a trust on you and can lend you without any risk.

Well, banks & financial institutions ask for numerous documents because of following reasons:

• To know the nationality & age of the applicant. Age is important as home loan is long term loan & the person should be at the age of repayment till the loan is over.
• Financial documents clearly state all the records that you have. For example, if the current loan’s EMI was not paid on time it will be traceable from bank statement.
• Credit score is easily verifiable from the list of documents that you are supposed to submit for loan transfer. If your credit score is not as per the requirement of bank of NBFC they will reject the application
• Monthly income can be determined easily from the employment & business documents. It is very important for bank / financial institute to make sure that you are eligible for the loan & you will able to repay t on time.

Yes, it is possible provided that the co-applicant of the loan is the joint owner of the property. In fact, a higher loan amount can be availed for joint properties.

Financial lenders have a set application fee which includes the charges to evaluate the property and the legal verification process.

Yes, some lenders offer the Loan Against Property for Non-resident Indians as well, but it depends on the terms and conditions set by the lender you wish to avail the loan from.

Using your application reference number, you can check the status of your loan application on the website of the lender. If the loan is approved, you will receive a message on your registered mobile number that your loan has been approved and that the money will be credited to your account shortly.

Customers can opt for the Loan Against Property for business purposes, personal reasons or debt consolidation.

No, the interest rates offered by lenders vary.

• Check your eligibility criteria before applying for a loan.
• Make sure you have all the correct documents.
• Compare the loan schemes offered by different lenders.

In addition to mortgage interest rates, banks charge the following fees on loan

• Processing fee: This fees is charged when you apply for a loan. The processing fee can range between 0.50 -1% of the loan amount and can be negotiated down, if you bargain. If you approach the bank through an online market place like we will assist you in negotiating with the bank and also, get attractive cash backs on sanctioned loan amounts. Sometimes, we also get to offer exclusive loan schemes on behalf of the banks such as nil processing fees for our valued customers.
• Foreclosure fee: This fees is charged when you decide to close your loan before the completion of loan tenure. Banks charge nil prepayment penalty on individuals having floating rate loans. You also need to read the terms and conditions of your loan agreement carefully to check on the prepayment clause and ensure that it is not too strict compared to market benchmarks.
• Other Charges: Banks charge legal and technical fee from the borrower which are explained at the time of loan processing.

• Service quality, especially post sales service quality
• Current best offer on processing charges as these tend to vary from time to time
• Add-on features – like DBS maxgain facility and Citibank Home Credit facility – these help borrowers to save interest by parking surplus funds temporarily in the account and paying interest on net difference between loan amount and surplus parked temporarily

To get a loan against property without income proof, you can consider using any of the following ways:

• You can add a co-applicant who has a good credit history and proper income documents.
• You can explain your income to the bank representative in detail if you do not have an ITR form. The bank statement can prove to be a useful tool in this regard.
• Justify your reason of not filing ITR with a genuine reason, and also consult a tax consultant.
• If you are continuously practicing good banking habits, then it can prove to be in your advantage.
• You can also choose to accept a lower loan to value and avail the loan instead of getting your loan application rejected.

In case of floating rate loans

• Most fixed rate loans would offer fixed interest rate for a period ranging from 1 year to 10 years. Fixed rate loan tenure is lesser than the maximum tenure of the loan. From your sanction letter and loan agreement, check the period for which the interest on your loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is same as what it was originally taken at
• In case your loan has converted to floating rate, the loan agreement would specify the formula for the same. The formula may be either MCLR/RLLR rate plus a given spread (in case of banks) or PLR minus spread (in case of NBFC). For MCLR or RLLR rate plus spread loan, just read the spread mentioned in the loan agreement and add it to the current MCLR or RLLR/EBR rate of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective bank or NBFC. You can find the current MCLR rate or PLR of your bank or NBFC at Current MCLR Base Rate and PLR.

You will need to submit copies of the following property documents

• Past title chain – Conveyance deed, sales deed, allotment letter, possession letter
• Copy of approved plan for construction/ extension
• Latest property tax receipt
• Receipt of advance payment towards purchase of property in case of resale or booking with builder

Yes, you can apply jointly with an earning co-applicant (either be your spouse or your parents). Adding a co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

Yes, you can avail top up on an existing LAP only if you have made timely repayment of EMIs accrued on existing Loan against land. The interest rate charges on top up loans are 0.25 – 1% higher than a property loan and can be availed with minimal documentation.

Yes, you may be eligible for this loan even with a bad credit score. But, the lenders may charge a higher rate of interest on your loan and may ask you to apply for loan along with a co-applicant who will be equally responsible for making timely loan repayments.

A personal loan is an unsecured loan, while loan against property is a secured loan. To avail of a personal loan, you are not required to submit any collateral, which is why it’s interest rate is comparatively high. Whereas you need to submit any property of yours as collateral to avail loan against property, and its interest rate is comparatively lower than an unsecured loan.

Usually, lenders ask about the status of your existing loans when you apply for a Loan against property. This is done to assess the eligibility of paying out EMIs on your loan in the future. If your payment history is good, then the lenders may give you the option of taking top up loan on your existing Loan against property . The bank may also offer you a new LAP if it feels that your current income levels can support additional EMI repayments and hence, you can be eligible for a new LAP loan.