Loan Against Property

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A loan against property (LAP) lets you borrow a large amount by mortgaging a residential or commercial property you own, while you continue to use it. Because the loan is secured, it usually carries a lower interest rate and a longer tenure than a personal or unsecured business loan.

LAP is commonly used for business expansion, working capital, education, medical costs or consolidating expensive debt. Share your requirement with ClickPe and our team will help you compare options from regulated lenders.

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Who is it for?

  • Business owners who need a large amount for expansion or working capital
  • Salaried or self-employed individuals who own a property with a clear title
  • Borrowers who want a longer tenure and a lower EMI than an unsecured loan

Key features

Higher loan amount

The amount depends on your property's market value and the lender's loan-to-value (LTV) limit.

Long tenure

Tenures commonly run up to 15 years or more, keeping EMIs lower.

Lower rate than unsecured loans

The property acts as security, so rates are usually lower than personal loans.

Keep using the property

You keep living in or running your business from the property while repaying.

Eligibility

  • Salaried or self-employed individual, or a business entity, with regular income
  • Clear, marketable title to a residential, commercial or (with some lenders) industrial property
  • Property free of disputes and, ideally, of existing loans (or the existing loan is transferred)
  • Age, income and credit score within the lender's policy

Documents required

  • KYC of all applicants and property co-owners
  • Income proof: salary slips and Form 16, or ITR and financials for self-employed
  • Bank statements for 6-12 months
  • Property papers: title deed/sale deed, chain documents, approved plan, latest tax receipt, and an encumbrance certificate

EMI calculator

₹
%
months
Monthly EMI
₹39,645
Principal
₹30,00,000
Total interest
₹17,57,427
Total amount payable
₹47,57,427

How to apply

  1. Share your requirement and property details with ClickPe.
  2. Compare indicative offers on amount, LTV, tenure and rate.
  3. Submit KYC, income and property documents.
  4. The lender conducts a legal and technical (valuation) check of the property.
  5. Sign the agreement and mortgage documents; the lender disburses the loan.

Loan-to-value (LTV) explained

LTV is the loan amount as a percentage of the property's assessed value. Lenders set their own LTV limits by property type and borrower profile; residential property usually gets a higher LTV than commercial property. A ₹1 crore property at 60% LTV, for example, supports a loan of up to ₹60 lakh.

The lender's valuation may be lower than the price you expect, so plan your requirement with a margin.

Risks to understand

Your property is the security. If you default, the lender can take legal steps to recover dues, including enforcing the mortgage. Choose an EMI you can sustain even if your income dips, and read the foreclosure and part-prepayment terms in the Key Fact Statement.

Frequently asked questions

How much loan can I get against my property?

It depends on the property's assessed value, its type and your income. Lenders apply an LTV limit to the value and also check that your income can support the EMI.

Can I get a loan against a property that already has a home loan?

Some lenders offer a top-up or will take over the existing loan and give additional funds. Others require the property to be free of existing loans.

How long does a loan against property take?

Usually longer than an unsecured loan, because the lender must verify the title and value the property. Expect one to a few weeks depending on documentation.

Is the interest rate fixed or floating?

Both exist. Many LAPs from banks are on floating rates linked to an external benchmark. The rate type is stated in your Key Fact Statement.

Related

    ClickPe is a financial marketplace and Digital Lending Service Provider. Loans and cards are sanctioned and issued by RBI-regulated banks and NBFCs; see our lending partners. Using ClickPe is free; we may receive a commission from the lender.