<h2><strong>What is Loan Against Property? Everything You should Know About</strong></h2><p>Business expansion, buying a new house, funding your child’s education, planning a dream wedding, or unexpected medical expenses; how about unlocking the value of your property to meet expenses? Let’s understand what is a loan against property and the key requirements to seek one.</p><h2><strong>Loan Against Property Meaning</strong></h2><p>Loan against property meaning is all explained in its name! A loan against property is an advance taken from a bank or NBFC against a pre-owned property. It is a secured loan wherein a residential or commercial property can be mortgaged to avail the loan against the property. The loan comes without an end-use clause and the loan proceeds can be used to fund any business or personal requirement. The property in question remains mortgaged with the lender till the loan is fully repaid. Thereafter, the ownership rights are transferred back to the borrower.</p><h2><strong>Benefits of Loan Against Property (LAP)</strong></h2><p>LAP is the best way to unlock the value of a property. The many benefits that loan against property offers are:</p><p><strong>Continue to enjoy ownership rights</strong> - The owner of the property can avail of the loan without selling off the property. The property remains mortgaged with the lender till the loan is repaid.&nbsp;</p><p><strong>No end-use clause </strong>– The loan proceeds of a loan against property can be used to fund any kind of financial shortfall.&nbsp;</p><p><strong>Low rate of Interest </strong>– As a loan against property is a secured loan, the rate of interest at which it is available is lower than unsecured loans.&nbsp;</p><p><strong>High principal amount</strong> – The principal amount that is approved for a loan against a property is directly linked to the market value of the property.&nbsp;</p><p><strong>Long repayment term</strong> – The repayment term of the loan can go up to 20 years. This makes repayment of loan amount easy and comfortable.</p><p><strong>Flexible repayment options</strong> – The loan against property can be repaid through easy EMIs. The options to part pre-payment and foreclose the loan are also available.&nbsp;</p><p><strong>All properties accepted </strong>– In addition to fully built-up residential and commercial properties, a loan against property can also be sought against a piece of land.</p><h2><strong>How Does Loan Against Property Work?</strong></h2><p>The process to avail of a loan against a property is simple and hassle-free. The process involves:</p><ul><li>Choose the lender</li><li>The property in question must meet the property specifications set by the lender. Also, the property must be registered in the name of the borrower and should have a clear title.</li><li>Through the documentation process, the lending company will verify the property and ownership details.</li><li>The lending company will evaluate the market value of the property.</li><li>Up to 70% of the market value of the property can be sought as a loan.</li><li>A loan against property agreement will be signed between the lender and borrower. The loan agreement will mention details about the repayment term, rate of interest, EMI details, etc.</li><li>The property will remain mortgaged with the lender till the loan is repaid in full.</li><li>Once the loan is fully repaid, the mortgage agreement stands null and void and the ownership rights are transferred back.</li></ul><h2><strong>Best Loan Against Property Interest Rates 2021</strong></h2><figure class="table"><table><tbody><tr><td><strong>Name of Bank or Lending Institution</strong></td><td><strong>Rate&nbsp; of Interest</strong></td><td><strong>Loan Amount</strong></td><td><strong>Loan Term</strong></td><td><strong>Processing Fee</strong></td><td><strong>Age Eligibility</strong></td></tr><tr><td>ICICI Bank</td><td><p>Starting @ 9% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Up to 70% of the market value of the property</td><td>Up to 15 years</td><td>1% of the sanctioned loan amount + applicable charges</td><td><p>Minimum 25 years -</p><p>Maximum 65 years</p></td></tr><tr><td>HDFC Bank</td><td><p>Starting @ 8% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Up to 65% of the market value of the property</td><td>Up to 15 years</td><td>Minimum Rs. 7500, Maximum of 1% of the sanctioned loan amount</td><td><p>Minimum 24 years -</p><p>Maximum 60 years.</p></td></tr><tr><td>SBI Bank</td><td><p>Starting @ 8.45% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Up to Rs. 7.5 Crore</td><td>Up to 15 years</td><td>1% of the sanctioned loan amount + applicable charges subject to maximum of Rs. 50,000</td><td><p>Minimum 18 years</p><p>Maximum 70 years</p></td></tr><tr><td>Citibank</td><td><p>Starting @ 8.70% p.a.</p><p>&nbsp;</p></td><td><p>Maximum up to Rs. 5 crore</p><p>Loan up to 70% of the market value of the property</p></td><td>Flexible repayment term up to 15 years</td><td>0.75% of the sanctioned loan amount + applicable charges</td><td><p>Minimum 23 years</p><p>Maximum 60 years</p></td></tr><tr><td>Indian Bank</td><td><p>Starting @ 10.50% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Maximum up to 1 crore</td><td>Up to 7 years</td><td>1.17% of the amount of loan sanctioned + applicable charges</td><td>Minimum 18 years - Maximum 60 years</td></tr><tr><td>Union Bank of India</td><td><p>Starting @ 10.75% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Up to 50% of the market value of the property</td><td>Up to 10 years</td><td>1% of the amount of loan sanctioned + applicable charges</td><td><p>Minimum 21 years</p><p>Maximum 65 years</p></td></tr><tr><td>Tata Capital</td><td><p>Starting @ 10.10% p.a</p><p>&nbsp;</p><p>&nbsp;</p></td><td>Up to Rs. 3 crores</td><td>Up to 15 years</td><td><p>Up to Rs. 30 lakh – 2% of the amount of loan sanctioned + applicable charges</p><p>&nbsp;</p><p>Above Rs. 30 lakh – 1.5% of the amount of loan sanctioned + applicable charges</p><p>&nbsp;</p><p>Above Rs. 50 lakh – 1% of the amount of loan sanctioned + applicable charges</p></td><td><p>Minimum 25 years</p><p>Maximum 60 years</p></td></tr><tr><td>Aditya Birla Capital</td><td><p>Starting @ 14% p.a.</p><p>&nbsp;</p><p>&nbsp;</p></td><td><p>Up to Rs. 75 crores</p><p>&nbsp;</p></td><td>Up to 15 years</td><td>1.25%&nbsp; - 2% of the amount of loan sanctioned</td><td><p>Minimum 21 years</p><p>Maximum 60 years</p></td></tr></tbody></table></figure><p><br>&nbsp;</p><h2><strong>How to Get Loan Against Property in India?</strong></h2><p>The process to get a loan against a property starts with finding a suitable lender. The borrower must clearly understand what is loan against property, the terms and conditions offered by each lender, and the rate of interest at which the loan can be availed. The loan Against property calculator can help your borrower know the principal amount of the loan against the property they are eligible for. After careful comparison between the lenders, the process to get a loan against property includes:&nbsp;</p><ul><li>Fill out the loan application form</li><li>Customer verification process</li><li>Submission of necessary documents</li><li>Property evaluation and verification</li><li>Loan approval and sanction</li></ul><h2><strong>&nbsp;Eligibility Criteria For Loan Against Property</strong></h2><p>The eligibility criterion of a loan against a property varies from lender to lender. The broad guidelines for eligibility conditions include:</p><ul><li>The age of the applicant must be between 18 - 65 years of age.</li><li>The applicant can be a self-employed or salaried individual. Private limited companies, HUF, NRI, Partnership Firms, and Trusts can also apply for a loan against property.</li><li>The property against which the loan against property is to be applied must be registered in the name of the individual applying for the loan.</li><li>The property must be residential, commercial, industrial, built-up, or land site.</li><li>The title of the property must be clear.</li><li>HUF partners, directors of partnership firms and private limited companies, trustees of Trusts, and coparceners with regular and independent income can become co-applicants of the loan against property.</li><li>Loan against third party property and property owned by sister or associate concerns is not allowed.</li></ul><h2><strong>Documents Required For Loan Against Property</strong></h2><p>Borrowers need to submit the following documents to avail a loan against property:</p><p><strong>Salaried Employees</strong></p><p>&nbsp;</p><figure class="table"><table><tbody><tr><td colspan="2">Passport size photograph of the applicant</td></tr><tr><td>Proof Of Identity</td><td><ul><li>Passport</li><li>Driving License</li><li>Aadhar Card</li><li>PAN Card</li><li>Voter ID</li><li>Form 60/61</li></ul></td></tr><tr><td>Proof Of Residence</td><td><ul><li>Passport</li><li>Telephone Bill</li><li>Electricity Bill</li><li>Property Tax Receipt</li><li>Voter ID</li></ul><p>(Utility bill should not be more than 3 months old)</p></td></tr><tr><td>Proof Of Income</td><td><ul><li>Latest Income Tax Return</li><li>Last 3 salary slip</li><li>Form 16 for last 2 years</li></ul></td></tr><tr><td>Property Ownership Documents</td><td><ul><li>conveyance deed</li><li>allotment letter</li><li>copy of the approved plan of construction or extension</li><li>sale deed</li><li>latest property tax receipt</li><li>title deed documents for 30 year</li><li>proof of title in Revenue Records</li><li>approved building plan</li><li>possession letter</li><li>power of attorney</li><li>occupancy certificate</li></ul></td></tr><tr><td>For Existing and Ongoing Loans</td><td>6 month bank account statement</td></tr></tbody></table></figure><p><strong>For Self-Employed</strong></p><figure class="table"><table><tbody><tr><td colspan="2">Passport size photograph of the applicant</td></tr><tr><td>Proof Of Identity</td><td><ul><li>Passport</li><li>Driving License</li><li>Aadhar Card</li><li>PAN Card</li><li>Voter ID</li><li>Form 60/61</li></ul></td></tr><tr><td>Proof Of Residence</td><td><ul><li>Telephone Bill</li><li>Electricity Bill</li><li>Property Tax Receipt</li><li>Passport</li><li>Voter ID</li></ul><p>(Utility bill should not be more than 3 months old)</p></td></tr><tr><td>Proof Of Income</td><td><ul><li>Last 2 years IT return with computation of income</li><li>Audited balance sheet</li><li>Audited profit &amp; loss account (attach tax audit report if applicable)</li><li>Proof of turnover vide latest sales</li><li>Service tax returns</li></ul></td></tr><tr><td>Property Ownership Documents</td><td><ul><li>conveyance deed</li><li>allotment letter</li><li>sale deed</li><li>latest property tax receipt</li><li>approved building plan</li><li>title deed documents for 30 year</li><li>power of attorney</li><li>proof of title in Revenue Records</li><li>possession letter</li><li>copy of the approved plan of construction or extension</li><li>occupancy certificate</li></ul></td></tr><tr><td>Existing and ongoing loans</td><td>6 month bank account statement</td></tr></tbody></table></figure><h3><strong>FAQs</strong></h3><h4><strong>✅What is the maximum amount of loan that can be availed against property?</strong></h4><p>Loan Against property are restricted to a maximum of 75% of the market value of the property.</p><h4><strong>✅ Who can be a co-applicant in a loan against property?</strong></h4><p>· &nbsp; &nbsp; &nbsp; &nbsp; Spouse, parents and children can be co-applicants in case of individuals applying for a loan against property.</p><p>· &nbsp; &nbsp; &nbsp; &nbsp; HUF partners, directors of partnership firms and private limited companies, trustees of Trusts and coparceners with regular and independent income can become co- applicants of the loan against property</p><h4><strong>✅ What is a loan against property?</strong></h4><p>Loan against property is a secured loan. It is an advance taken against a property without selling it. The property remains mortgaged with the lending company till the time the loan is repaid.</p><h4><strong>✅What is the loan tenure of a loan against property?</strong></h4><p>Banks usually allow loans against property for a term of 15 years.</p><p><strong>✅Which property ownership documents are required for a loan against property?</strong></p><p>The property ownership documents required for loan against property:</p><ul><li>conveyance deed</li><li>allotment letter</li><li>sale deed</li><li>latest property tax receipt</li><li>approved building plan</li><li>title deed documents for 30 year</li><li>power of attorney</li><li>proof of title in Revenue Records</li><li>possession letter</li><li>copy of the approved plan of construction or extension</li><li>occupancy certificate</li></ul>

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Loan Against Property - Read Blog to know more about LAP and when to consider Loan Against Property over other options.

What is Loan Against Property? Everything You should Know About

<p>Finance Writer: Expert in Loans &amp; Credit Cards</p>

Priyanka Jain

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<p>Omni Channel Content Specialist| enthusiastic personal finance writer | Top50 CM professional by WMC, CMO</p>

<p>Loan Against Property - Read Blog to know more about LAP and when to consider Loan Against Property over other options.</p>

<p>A loan against property or LAP permits the owner to leverage their property/land for raising funds to mitigate their personal or business requirement without actually losing out on the ownership of their property. As they are secured in nature, loan against property interest rate is lower than other unsecured credit options, and lenders often take a less stringent analysis towards credit score while assessing the borrower’s creditworthiness. But this ease of approval usually makes many of the borrowers avoid some vital facets.&nbsp;</p><p>Here, first, we will discuss certain crucial aspects that applicants generally avoid when applying for a loan against property. Next, we will discuss the present&nbsp;loan against property interest rate, which bank is best for loan against property, eligibility criteria regarding LAP, documents required, and why using the LAP EMI calculator is crucial before opting for this credit option.&nbsp;</p><h2><strong>Crucial aspects usually avoided by a loan against property applicants:&nbsp;</strong></h2><h4><strong>&nbsp;Avoiding comparing rate of interest of different lenders&nbsp;</strong></h4><p><strong>&nbsp;</strong>Loan against property interest rate<strong> </strong>ranges anywhere between 8.20% and 14.50 % based on the lender's evaluation of their credit risk concerning the applicant’s credit profile. The interest rate of LAP may even vary basis the loan amount and the loan repayment tenure that the borrower opts for. Thus, the ones planning to take up LAP must first compare LAP offers from multiple lenders. They must start their hunt for LAP by first visiting the bank/HFC with whom they already share an existing customer relationship. After this, they must visit the online financial markets for comparing LAP offers being provided by various other lenders. The final application for LAP must be with the bank/HFC that is charging you the lowest rate of interest for optimal loan amount and loan repayment tenure.&nbsp;</p><h4><strong>&nbsp;Avoiding to factor in the processing charges and prepayment fees</strong></h4><p><strong>&nbsp;</strong>Apart from loan against property interest rate, processing fees charged by a lender is the next crucial factor to be considered. Processing charges that are charged by maximum LAP lenders generally range from 1 % to 2 % of the loan amount. As this credit option involves a big-ticket loan amount, their processing fee too may be of a sizable amount. Hence the LAP applicants should always ensure to factor in their processing charges before making the final application with a specific lender.&nbsp;</p><p>&nbsp;According to the guidelines set by RBI, LAP taken upon floating rates come with no prepayment charges. But lenders who provide LAP on fixed rates might charge prepayment or foreclosure fees. As opting for the prepayment route when fixed-rate LAP is concerned can cost a huge amount, always consider opting for floating rate LAP. Doing this may enable you to opt for a prepayment option without having to pay any charges in the form of prepayment fees.&nbsp;</p><h4><strong>Not selecting loan repayment tenure based on repayment capacity.</strong></h4><p>&nbsp;The loan repayment tenure of any credit option plays an important role in deciding the loan EMI and complete interest cost. Higher loan repayment tenures may lead to reduced EMIs but result in increased interest costs. The opposite stands true in the case of loans available at shorter repayment tenures. As LAP repayment tenure can go as high as 15 or 20 years on the basis of the lender, one should choose the LAP repayment tenure based on their repayment capacity. Choose shorter loan repayment tenures just if you are completely sure of meeting your EMIs timely without any requirement to compromise on your monthly contributions towards important financial goals. The ones who cannot just stick with longer loan tenure to repay lower EMIs as failure to meet timely EMIs can lead to steep penal charges, which in turn negatively affects their credit scores as well as their loan and credit card eligibility prospects. Those borrowers choosing longer repayment tenures have always the option open to lower their interest cost by opting for prepayments whenever they avail surplus funds.&nbsp;</p><h4><strong>Failing to factor in the disbursal time at the time of availing loan</strong></h4><p>&nbsp;LAPs disbursal generally takes near to two to three weeks because the lenders require verifying all your property documents as well as conducting technical study when evaluating the property’s market value before accepting the LAP application. Hence, LAP may not be the right match for the ones with instant fund requirements. These applicants must, instead of opting for LAP, must consider opting for a personal loan or any other credit option with a shorter disbursal time.&nbsp;</p><h4><strong>Ignoring to factor in LAP’s EMI into an emergency fund</strong></h4><p>&nbsp;Financial exigencies like job loss, illness, accident etc., are uncertain in nature and can occur anytime, which can hamper your income, cash flows and also your capacity to meet loan EMIs. Though one can always rely on their existing investments for repayment of their loan EMIs, doing this can negatively hamper their financial health for the long term. To meet such risk arising owing to unexpected emergencies, borrowers must also ensure to consider their existing EMIs into their contingency fund. Note that a contingency fund must be adequate enough to mitigate your unavoidable expenditures for nearly 6 months or even more. Thus, when you begin with your plan for LAP, ensure to simultaneously increase your emergency fund by around 6 times the expected LAP’s EMI. As financial emergencies can occur anytime, remember to park your money in financial instruments which are liquid in nature, such as bank fixed deposits and high yield savings bank account.&nbsp;</p><h2><strong>Best Loan Against Property Interest Rates</strong></h2><p><strong>&nbsp;</strong>A loan against property or LAP is even addressed by the term mortgage loans. They have secured credit options wherein borrowers require pledging their property, either commercial or residential, as security or collateral. The current&nbsp;loan against property interest rate&nbsp;may range anywhere between 8.20% p.a. and 14.50% p.a, and the loan repayment tenures can go up to 20 years.&nbsp;</p><h2><strong>Which Bank is Best for Loan Against Property in India?</strong></h2><p>The question ‘which bank is best for loan against property’ must be one of the initial questions of applicants looking for a loan against property from a suitable lender. Presently, banks offering loans against a property interest rate&nbsp;of below 9 % p.a include Bank of Baroda (BoB), Union Bank of India, Bank of Maharashtra, HDFC Bank and State Bank of India.&nbsp;</p><p>Below with the help of a loan against property interest rate&nbsp;table, we have illustrated ‘which bank is best for loan against property.&nbsp;</p><figure class="table"><table><tbody><tr><td colspan="5"><strong>Loan Against Property interest Rate&nbsp;&amp; Charges</strong></td></tr><tr><td>Lender</td><td>Rate of interest (%) P.A</td><td>Processing charges (% of the loan amount)</td><td>Loan amount (Rs)</td><td>Maximum loan repayment tenure</td></tr><tr><td>Bank of Baroda</td><td>8.20 - 13.85</td><td>1 % (Maximum 1.50 lakh)</td><td>Up to 10 crore</td><td>15 years</td></tr><tr><td>Union Bank of India</td><td>8.40 - 10.65</td><td>1 % (Rs 5,000 - Rs 1 lakh)&nbsp;</td><td>5 lakh - 10 crore</td><td>15 years</td></tr><tr><td>Bank of Maharashtra</td><td>8.55 - 9.55</td><td>1 %</td><td>Up to 5 crore</td><td>15 years</td></tr><tr><td>HDFC Ltd.&nbsp;</td><td>8.75 - 11.55</td><td>Up to 1.5 % (Minimum : Rs 4,500)</td><td>Differs for existing &amp; new customers*</td><td>15 years</td></tr><tr><td>State Bank of India</td><td>8.80 - 9.65</td><td>1 % (Maximum Rs 50,000)</td><td>Up to 7.5 crore</td><td>15 years</td></tr><tr><td>Karur Vysya Bank</td><td>9.00 - 12.00</td><td>0.50 %</td><td>10 lakh - 3 crore</td><td>100 months</td></tr><tr><td>PNB Housing</td><td>9.50 - 11.00</td><td>2 %</td><td>Up to 60 % of the market value of property&nbsp;</td><td>20 years</td></tr><tr><td>Canara Bank</td><td>9.95 - 12.00</td><td>0.50 &nbsp;%(Minimum Rs 5,000)</td><td>Up to 10 crore</td><td>10 years</td></tr><tr><td>Federal Bank</td><td>10.10 onwards</td><td>1 % (Minimum Rs 3,000)&nbsp;</td><td>Up to 5 crore</td><td>15 years</td></tr><tr><td>Tata Capital</td><td>10.10 onwards</td><td>Up to 2 %</td><td>10 lakh - 3 crore</td><td>15 years</td></tr><tr><td>Bajaj Finserv</td><td>10.10 - 14.50</td><td>Up to 6 %</td><td>Up to 3.5 crore</td><td>20 years</td></tr><tr><td>Indian Bank</td><td>10.50 - 10.65</td><td>1 %</td><td>Up to 5 crore</td><td>15 years</td></tr><tr><td colspan="5">* *Existing customers: Up to 60% of property's market value (The principal outstanding on all existing loans and the LAP being availed should not cumulatively exceed 60% of the Market Value of mortgaged property). For New customers: Generally up to 50% of property's market value.&nbsp;</td></tr><tr><td colspan="5">Data as of 30th&nbsp;July 2021</td></tr></tbody></table></figure><h2><strong>Eligibility Criteria</strong></h2><p>&nbsp;Whenever a customer submits an application for LAP, financial lenders consider the applicant’s eligibility. A few of the factors that are considered for checking the eligibility of the LAP applicant are the applicant’s age, income, nature of employment, property’s value etc. Based on such factors, financial lenders either reject or approve the applicant’s LAP application.&nbsp;</p><h4><strong>Documents Required</strong></h4><p>Below, we have provided some of the main documents that the lenders ask for before processing the applicant’s LAP application:</p><ul><li><strong>Identity proof:</strong> Aadhaar card, passport, PAN etc.</li><li>Form 16</li><li>Address proof - Driving license, aadhaar card, voter ID etc.</li><li>Bank statement</li><li>IT returns certificate</li><li>Income proof document</li><li>Salary slip</li><li><strong>Property document </strong>- registration certificate, sales deed, building plan, property tax receipt, building plan approved by Municipal Corporation etc.</li></ul><h2><strong>Loan against Property EMI Calculator</strong></h2><p>For planning one’s finances in advance, applicants must take the help of the LAP EMI calculator for knowing how much they should set aside per month for repaying the EMI. LAP EMI factors in parameters like loan amount availed, applicable&nbsp;loan against property interest rate&nbsp;and the loan repayment tenure.</p><p>&nbsp;For instance, suppose Mr X availed a LAP of 45 lakh for a loan repayment tenure of 10 years with a rate of interest of 9% p.a. Considering the principal amount and&nbsp;loan against property interest rate divided by the loan repayment tenure, Mr X will require repaying a LAP EMI of Rs 57,004 with total interest payable being Rs 23,40,509 and total payment summing to Rs 68,40,509. &nbsp;</p><h3><strong>FAQs</strong></h3><h4><strong>✅Which bank is good for loan against property?&nbsp;</strong></h4><p><strong>&nbsp;</strong>Loan against property interest rate&nbsp;of below 10 % p.a is offered by Bank of Baroda, Union Bank of India (UBI), Bank of Maharashtra, HDFC Ltd, State Bank of India, Karur Vysya Bank, PNB Housing and Canara Bank.&nbsp;</p><h4><strong>✅How much loan can I get against the property?&nbsp;</strong></h4><p>&nbsp;The highest loan amount that you can get against your property can go up to Rs 10 crore. Lenders offering maximum Rs 10 crore loan amount on LAP are Bank of Baroda, Union Bank of India and Canara Bank.</p><h4><strong>✅Is a loan against property a good idea?&nbsp;</strong></h4><p>Yes, a loan against property is a good idea for those in need of big-ticket funds to meet their financial emergencies or monetary shortfalls. Owing to its secured nature, LAP lenders usually may avoid the requirement of factoring in the credit score of the loan applicant when evaluating his/her application. Thus, it may be the best choice for those with security in the form of the property but lacking a good credit score of 750 and above. Moreover, like a personal loan or loan against credit cards, the loan proceeds of LAP can be used for any specific purpose like funding a child’s higher education or marriage, renovating or improving a home, medical expenses etc. However, note that as this credit option’s processing time may take nearly 2 to 3 weeks, those in instant need of funds may not find it to be an appropriate loan option. Such individuals may opt for other credit options like instant personal loans or loans against credit cards to meet their instant fund requirements or mismatches.</p><h4><strong>✅What is the procedure for a loan against property?&nbsp;</strong></h4><p>One of the initial procedures involved before zeroing on any LAP lender is to compare among various LAP lenders on the basis of<strong>&nbsp;</strong>loan against property interest rate, processing fee, offered loan repayment tenure etc. The comparison procedure can be carried out by approaching online lending marketplaces. Note that the final application should be with the lender charging the lowest rate and charges for an optimal loan tenure and LAP amount.</p><h4><strong>✅How long does it take to avail a loan against property?&nbsp;</strong></h4><p>Processing of loan against property usually takes a period of 2 to 3 weeks. Thus, those in instant need of funds in case of financial emergencies may not find a loan against property a suitable option. Such individuals can opt for a loan against credit card or personal loans as such credit options come with shorter processing time.</p>

Best Loan Against Property Interest Rates in india

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Looking for a loan against property at attractive rates? Compare loans against properties offered by different banks and pick the one that suits your requirement.

Best Loan Against Property Interest Rates in India 2021 - MyMoneyMantra

Reshma Rawat

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<p>Loan against property interest rate which bank is best for loan against property</p>

<p style='text-align: justify;'>Getting a Secured Loan against your property is a very good choice when you need a large amount of money in a very short span of time. As we are preparing to come out of the COVID-19 induced lockdown, now will be the perfect time for people to invest in growing their businesses, start new businesses or work on money plans which have been on hold because of almost the entire world staying at home. Emergence of new opportunities and opening of markets will surely provide many great options for people who want to use Loan Against Property as a way to cater their financial requirements. Below are a few tips that will help you get lowest <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property-interest-rates.html' target='_blank'><b>Loan Against Property Interest Rates</b></a></span> in 2021.</p> <p style='text-align: justify;'><b>Maintain a high credit score: </b>Your credit score is a 3 digit indicator assigned to you by credit reporting bureaus. It shows how good you have been with your previous credit instalments and acts as a measure to test how well will you perform on your continuing and new debts. Credit score is based upon multiple factors including overall credit utilization, regular EMI payments, low credit appetite, among other things. If you have a Credit Score of 800+; you will be the best borrower for any lender. They will easily lend you at the best possible terms and conditions including lowest interest rates. In fact, the Credit Score of a person can impact the interest rates by as much as 1.5 to 2%. When you are dealing in loan amounts of lakhs and crores, you would be delighted at even a half a percent discount in interest rates.</p> <table class='table-bordered table'> <tbody> <tr> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/buy-house-without-money-payment/'><strong style='color: #ffffff; text-decoration: underline;'>Buy a House Without Down Payment</strong></a></span></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/have-you-booked-your-home-under-pradhan-mantri-awas-yojana-yet/'><strong style='color: #ffffff; text-decoration: underline;'>Book Your Home Under PMAY Yojana</strong></a></span></td> </tr> </tbody> </table> <p style='text-align: justify;'><b>Seek low Loan-to-Value ratio:</b> Loan Against Property is offered based upon multiple factors related to the property. The actual market value of the property is estimated by the lender. Depending upon factors like the residential or commercial nature of the property, where the property is located, its age and some other factors, the bank will decide how much they can lend. Generally, banks declare that they will offer LAP at certain value only. SBI offers LTV ratio of 65% as long as loan amount being applied for is under 1 crore. For loan applications above 1 crore, the bank offers LTV of 60%.<span class='Apple-converted-space'>  </span><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/hdfc-bank.html' target='_blank'><b>HDFC Bank Loan Against Property</b></a></span> is available at LTV ratio of 65%. If you are open to going lower on the loan-to-value ratio, many lenders will be able to offer you good interest rates. </p> <p style='text-align: justify;'><b>Seek low EMI to NMI ratio:</b> NMI to EMI ratio is a very important factor in all kinds of Property Loans. If you are new to the concept of loans and credit Cards, NMI is the Net Monthly Income a borrower after paying all legal liabilities (like income tax, EMIs etc). Banks and lenders set up a cap on NMI-to-EMI ratio to ensure quality of credit customers.<span class='Apple-converted-space'>  </span>There are important life expenses like food which need to be taken care of. SBI sets up 50% EMI to NMI ratio for people earning between Rs 3 lakhs to 5 lakhs in a year. The ratio is 55% for people earning between 5 lakhs and 10 lakhs yearly. People earning more than 10 lakh every year get 60% EMI to NMI ratio.</p>  <p><a href='https://www.mymoneymantra.com/home-loan/kotak-mahindra-bank.html?utm_source=google&amp;utm_medium=organic' target='_blank'><img class='alignnone size-full wp-image-12160' src='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg' alt='Lowest Home Loan Interest Rates on Kotak Mahindra Bank' srcset='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg 906w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-300x79.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-768x202.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p>  <p style='text-align: justify;'><b>Complete property documentation: </b>Loan Against Property in India involves considerable documentation related to property. There will be documentation requirements like Property Map, Property Title Deed, Property Tax Records, Revenue Records, Land Records and Municipal Records, Possession Certificates and Certificate from Fire Control Authorities and Environmental Authorities. Some of these documents like Property Title Deeds and Tax Documents are absolutely necessary and no loan can be granted in their absence. In some cases, lenders may be ready to forego a few of the other documentation requirements, like map, in exchange for a bit higher interest rate. If you have been missing any of the optional documents, you will be well advised to work hard on finding and completing them when you apply for the loan.</p> <p style='text-align: justify;'>Complete documentation, including the optional ones, is a great bargaining chip for any person based upon which they can negotiate favourable interest rates on LAP.</p> <p style='text-align: justify;'><b>Compare between different lenders:</b> Comparison shopping is a concept as old as the second person who decided to offer their goods and services, thus creating the very concept of a market. The moment consumers saw that they can get the same product from more than one seller, they realize that they can compare between the two and choose the product which is cheaper for them. Loan Against Property is a product with practically zero differentiation. You have the option to ask as many lenders as you can to offer you the best they can do. Once you have some offers in your hand, you can either pick the best among what you have or you can tell other lenders that these are the offers you have received and you are looking to close the deal with anyone who can offer lesser Loan Against Property interest rates.</p> <p style='text-align: justify;'><b>Wait for special offers:</b> Another great way to look for low interest rate choices on Loan Against Property in India is to wait for special offers. Once we emerge from this whole Corona Virus chaos, banks and lenders will have to work double time to meet their targets. This means a number of special offers on LAP can be expected. These may not start coming immediately because there will be too much of pent up demand for first 2 quarters post the economy reopens, but after that lenders will need to cover some ground before 2021 closes. The final decision would certainly depend on your requirements.</p>  <p><strong>Also Read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/can-avail-home-loan-unapproved-property/' target='_blank'>Avail of Home Loan Against Unapproved Property?</a></span></strong></p>  <p style='text-align: justify;'>To apply online for <span style='text-decoration: underline;'><strong><a href='https://www.mymoneymantra.com/blog/5-best-home-loans-in-india/'>Best Home Loan in India</a></strong></span>, Personal Loan, Credit Card, Business Loan &amp; LAP visit <em>www.mymoneymantra.com</em>, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p> <p><a href='https://www.mymoneymantra.com/loan-against-property.html?ref=lapblog-bottombanner'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='300' height='43' /></a></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/tips-to-help-you-avail-lowest-lap-rate-in-2020/' data-a2a-title='Tips to Help You Avail Lowest LAP Rate in 2021'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>Getting a Secured Loan against your property is a very good choice when you need a large amount of money in a very short span of time. As we are preparing to come out of the COVID-19 induced lockdown.</p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/tips-to-help-you-avail-lowest-lap-rate-in-2020/' data-a2a-title='Tips to Help You Avail Lowest LAP Rate in 2021'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Ftips-to-help-you-avail-lowest-lap-rate-in-2020%2F&amp;linkname=Tips%20to%20Help%20You%20Avail%20Lowest%20LAP%20Rate%20in%202021' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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A Secured Loan against property is a very good choice when you need affordable funding in a short span. Let’s find out some proven steps to get the lowest Loan Against Property interest rates in 2021.

Tips to Help You Avail Lowest LAP Rate in 2021

 <p>Do you need a large amount to meet some immediate expenses at a low-interest rate? If yes, then Loan Against Property (LAP) can be the best alternative among all other financial options. Not just low-interest rate, but it also provides longer tenor and flexibility of usage as you can obtain this loan to fund various needs like bearing urgent medical expenses, business expansion, funding your child’s educational expenses, etc.</p>  <h2><span style='font-size: 12pt;'><strong><em>However, you must follow 5 rules mentioned below before signing the loan agreement:</em></strong></span></h2>  <h3><span style='color: #99cc00; font-size: 12pt;'><strong>1. Borrow as per Your Repayment Capacity</strong></span></h3> <p>Do you imagine yourself paying LAP EMIs for next many years? If no, it is advised to borrow an amount that you can repay conveniently. Most banks offer 50-90% LAP based on the property’s market value. As per the experts, you should keep your monthly EMI for Loan Against Property between 60- 65% of your total income. Having high monthly instalments can eat a major portion of your income and you might have to compromise on some important financial goals like your retirement plan, child’s education, etc.</p>  <h3><span style='color: #99cc00; font-size: 12pt;'><strong>2. </strong><strong>Go for a Short Tenor if You Can</strong></span></h3> <p>LAP comes with a flexible tenor of 5-20 years thus, making the EMIs lower. <a href='https://www.mymoneymantra.com/loan-against-property.html'><strong>Small EMIs on Loan Against Property</strong></a> may look financially attractive to you in the beginning; however, you may end up paying more interest in the long run than a shorter tenure loan. In case you can’t afford bigger EMIs when you purchase a loan, you may ask your lender to shorten the tenor by increasing EMIs when there is a rise in your income. Doing this can reduce your loan burden.</p>  <h3><span style='color: #99cc00; font-size: 12pt;'><strong>3. Repay EMIs Timely</strong></span></h3> <p>Defaulting on or delaying your loan EMIs can land you in trouble. You will not only be charged penalties for non-payment, but irregular repayment can bring your credit score down, reducing your chances of getting a loan in future. It is advised to repay your loan in a disciplined way as any late payment or default will reflect in your credit record.</p> <h3><span style='color: #99cc00; font-size: 12pt;'><strong>4. Get Insurance with Big Loans</strong></span></h3> <p>If you are availing a huge loan amount such as Loan Against Property or <strong>Home Loan</strong>, make sure you also take an insurance cover. Insurance amount can lessen the debt burden on your family in any unfortunate circumstances. Many banks offer a term cover with the loan to their customers. Also, you can opt for a regular term plan serving the same purpose</p>  <h3><span style='color: #99cc00; font-size: 12pt;'><strong> 5. </strong><strong>Read the Fine Print Carefully</strong></span></h3> <p>No matter how long your loan’s fine print is, it is imperative to read and understand it clearly. Look out the clauses for late payment penalties, foreclosure, processing charges, administration and other additional charges that are associated with your loan. Don’t sign the document until you entirely understand all the clauses mentioned in it.</p>  <p><strong>Also Read: <span style='color: #99cc00;'><a style='color: #99cc00;' href='https://mymoneymantra.tumblr.com/post/169499490155/things-to-keep-in-mind-before-applying-for-axis' target='_blank'><em>Things to Keep in Mind Before Applying for Axis Bank Loan Against Property</em></a></span></strong></p>  <p><a href='https://www.mymoneymantra.com/loan-against-property.html'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='379' height='45' srcset='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png 379w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/03/Loan-Against-Property-300x36.png 300w' sizes='(max-width: 379px) 100vw, 379px' /></a></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/5-rules-to-follow-when-purchasing-a-loan-against-property/' data-a2a-title='5 Rules to Follow When Purchasing a Loan Against Property'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>Do you need a large amount to meet some immediate expenses at a low-interest rate? If yes, then Loan Against Property (LAP) can be the best alternative among all other financial options. Not just low-interest rate, but it also provides longer tenor and flexibility of usage as you can obtain this loan to fund various needs like bearing urgent medical expenses, business expansion, funding your child&#8217;s educational expenses, etc.</p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/5-rules-to-follow-when-purchasing-a-loan-against-property/' data-a2a-title='5 Rules to Follow When Purchasing a Loan Against Property'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2F5-rules-to-follow-when-purchasing-a-loan-against-property%2F&amp;linkname=5%20Rules%20to%20Follow%20When%20Purchasing%20a%20Loan%20Against%20Property' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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Do you need a large amount to meet some immediate expenses at a low-interest rate? If yes, then Loan Against Property (LAP)

5 Rules to Follow When Purchasing a Loan Against Property

<p>Director - MyMoneyMantra Fintech&nbsp;</p>

Aparna Sharma

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<p style='text-align: justify;'>The State Bank of India (SBI) is the largest banking company in India. It has access to and caters to a very large chunk of the population of the country. SBI has the widest range of product offerings among all other financial services companies in India. Lending has been one of the core businesses of SBI through which they continue to make the largest chunk of their revenue. They have a widely successful Loan Against Property offering.</p> <p style='text-align: justify;'><em><strong>Here is a list of 10 very important things to know if you are interested in getting SBI Loan Against Property:</strong></em></p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>1. Income eligibility conditions: </b></span></h3> <p style='text-align: justify;'>Income eligibility conditions are set by any lender to decide how much minimum income a borrower should be earning to qualify for availing of a loan. As the income of the borrower goes up, so does their loan eligibility. So a person who is just starting their career will have a low income and thus low eligibility, as you progress in your career, you become eligible to borrow more. <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/sbi-bank/loan-against-property-eligibility-criteria.html' target='_blank'><strong>SBI Loan Against Property Eligibility</strong></a></span> is open to both self-employed and salaried individuals at Rs 25,000 minimum. The borrower can also club income of spouse or family member if they want a joint loan, subject to property ownership conditions. </p> <h3 class='p1'><b><span style='font-size: 12pt; color: #99cc00;'>2. EMI to NMI ratio:</span></b></h3> <p style='text-align: justify;'>EMI to NMI ratio is the percentage of your Net Monthly Income to what will be the EMI on the amount that the bank will lend. The bank does not expect you to pay all your income to them as EMI (Equated monthly Instalment). You will also have to take care of your living expenses and other savings as well. Besides, in many cases, the income of borrower can fluctuate on either side, and banks need to account for borrower’s income going down in the future. At SBI, people earning between 3 to 5 Lakhs per annum have EMI to NMI ratio of 50%. Annual income between Rs 5 Lakh to Rs 10 Lakh can help you avail a loan for EMI/NMI ratio of 55%, and annual income above Rs 10 Lakh can get you the EMI to NMI ratio of 60%. Simply put, anyone earning over 1 lakh per month can have an EMI of up to Rs 60,000.</p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>3. Security towards loan:</b> </span></h3> <p style='text-align: justify;'>Security towards the loan is the property that you will pledge to the bank as collateral. The bank keeps it as a safety consideration that borrower will return the loan amount, or else the bank will be authorised to liquidate the property and make good on their dues. Unlike some other banks which will only keep the residential property as the security towards the loan, SBI allows you to keep both residential and commercial properties as a pledge. The final decision on eligibility for <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/sbi-bank.html' target='_blank'><strong>SBI Loan Against Property</strong></a></span> is made by the loan granting officer or branch manager.</p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><strong>4. Loan to Value ratio: </strong></span></h3> <p style='text-align: justify;'>The loan to value ratio is the percentage of the value of your property that the bank will lend out to you. Banks will never lend out LAP to the full property value simply because the property value fluctuates. They must account for standardised fluctuation in property prices. For loan amounts up to Rs 1 crore, SBI Loan Against Property is granted for up to 65% of the property value, i.e., Rs 65 Lakh. For property valued above Rs 1 crore, SBI will only lend up to 60% of property value. This is still subject to other considerations like borrower’s age and income etc.</p>  <p><a href='https://www.mymoneymantra.com/home-loan/kotak-mahindra-bank.html?utm_source=google&amp;utm_medium=organic' target='_blank'><img class='alignnone size-full wp-image-12160' src='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg' alt='Lowest Home Loan Interest Rates on Kotak Mahindra Bank' srcset='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg 906w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-300x79.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-768x202.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p>  <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>5. Loan amount range:</b> </span></h3> <p style='text-align: justify;'>The range of loan amount is the minimum and maximum amount between which you can borrow. This regulation works in accordance to the loan-to-value ratio and restricts how much the bank will lend to a borrower even if the property is valued extremely high. SBI sets up the minimum loan amount of Rs 10 Lakh and a maximum of Rs 7.5 crore. For non-BPR areas, the maximum loan amount is restricted to Rs 1 crore only. For BPR areas, if the property is located within the Municipal Corporation areas of Delhi NCR, Mumbai, Pune, Chennai, Ahmedabad, Bangalore and Hyderabad centres, the limit is Rs. 5 crore, and for all other BPR areas, the maximum limit is 2 crore.</p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>6. Purpose of loan: </b></span></h3> <p style='text-align: justify;'>The purpose of the loan is the reason for which you will be borrowing the money from the bank. Most of the banks will lend you money for personal or business purpose. With SBI, the condition is slightly different. SBI does not provide LAP for speculative purposes. Nor do they provide loans for business purposes. They only lend for personal purposes, for example, like covering the expenses of education, marriage, healthcare, etc. SBI requires the borrowers to submit an undertaking about the end purpose of the loan, though they do not ask for any proof of end-use of money.</p> <h3 class='p1'>  <span style='font-size: 12pt; color: #99cc00;'><b>7. Rate of Interest:</b></span></h3> <p style='text-align: justify;'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/sbi-bank/loan-against-property-interest-rates.html' target='_blank'><strong>SBI Loan Against Property Interest Rates</strong></a></span> are easily among the best in the entire market. Their interest rates tend to differ based upon the income mode of the borrower.</p> <ul style='padding-left: 20px;'> <li style='text-align: justify;'>If the borrower is considering more than 50% of Net Monthly Income as a salaried income, the interest rate for loans up to 1 crore is 1 year MCLR + 1.45%, for loans between 1 to 2 crores it is 1 year MCLR + 2.10% and loans above 2 crores it is 1 year MCLR + 2.5%.</li> </ul> <ul style='padding-left: 20px;'> <li style='text-align: justify;'>If the borrower is considering more than 50% of Net Monthly Income as a business, professional or rental income the interest rate for loans up to 1 crore is 1 year MCLR + 2.1%, for loans between 1 to 2 crores it is 1 year MCLR + 2.60% and loans above 2 crores it is 1 year MCLR + 3%.</li> </ul> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>8. Processing charges:</b> </span></h3> <p style='text-align: justify;'>Processing charge is the cost that the bank incurs to process your application. This may include, but is not limited to, legal costs, agreement related costs, credit report related costs, property valuation costs and charges, and taxes to be paid to municipal and state governments about conducting property-related due diligence like title deed review, ownership chain review, etc. This is one factor where SBI Loan Against Property beats every other competitor. While other lenders have a percentage based minimum ceiling of processing fees, SBI has a maximum ceiling. They will charge you 1% of the loan amount subject to a maximum of Rs 50,000 along with all applicable taxes.</p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>9. Borrower’s age-related rules:</b></span></h3> <p style='text-align: justify;'>Considering the special nature of Loan Against Property, the approval depends upon the age of the borrower. All loans under LAP offering must compulsorily end before the borrower (the eldest borrower, if taken jointly) reaches the age of 70 years. Thus, all other conditions being met, the age eligibility for SBI Loan Against Property is around 64 to 65 years.</p> <h3 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>10. Loan tenure:</b> </span></h3> <p style='text-align: justify;'>The loan against property is offered for a minimum of 5 years and a maximum of 15 years by almost all banks in India, and the same is the case with SBI. This is, of course, limited by the borrower’s own age as discussed above.</p> <p class='p1'> </p> <p class='p1'><strong>Also Read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/know-this-before-you-apply-for-loan-against-property-with-bad-cibil-score/' target='_blank'>Know This Before You Apply for Loan Against Property with Bad CIBIL Score</a></span></strong></p> <p class='p1'> </p> <p style='text-align: justify;'>To apply online for <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/5-best-home-loans-in-india/' target='_blank'><strong>Best Home Loan in India</strong></a></span>, Personal Loan, Credit Card, Business Loan &amp; LAP visit <strong>www.mymoneymantra.com</strong>, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p>  <p><a href='https://www.mymoneymantra.com/loan-against-property.html?utm_source=google&amp;utm_medium=organic'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='300' height='43' /></a></p> <p><style type='text/css'>   .home-content table p {     padding: 0 !important;   }   @media only screen and (max-device-width: 768px) {     .home-content .table-wrap {       overflow-x: scroll;     }     .table-responsive>.table>thead>tr>td, .table-responsive>.table>tbody>tr>td, .table-responsive>.table>tfoot>tr>td {       white-space: initial;     }   } </style> <p> <script type='text/javascript'>   $(document).ready(function () {     $('.home-content .table').addClass('table-condensed');     $('.home-content .table').wrap($('</p> <div class='table-wrap'></div> <p>'));   }); </script></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/sbi-loan-property-10-things-to-know/' data-a2a-title='SBI Loan Against Property: 10 Things to Know'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>The State Bank of India (SBI) is the largest banking company in India. It has access to and caters to a very large chunk of the population of the country. SBI has the widest range of product offerings among all other financial services companies in India.</p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/sbi-loan-property-10-things-to-know/' data-a2a-title='SBI Loan Against Property: 10 Things to Know'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fsbi-loan-property-10-things-to-know%2F&amp;linkname=SBI%20Loan%20Against%20Property%3A%2010%20Things%20to%20Know' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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Loan Against Property is one of the sure-shot ways to avail of a high-ticket loan with affordable EMIs for your business needs. Here is a list of 10 very important aspects to know about SBI Loan Against Property.

SBI Loan Against Property: 10 Things to Know

<p style='text-align: justify;'>The incredible growth of the Indian banking and financial services sector, in recent years, has not only made finance much more accessible, it has also brought in a wide range of financial products and services for customers to choose from. As the market matures with every passing day, consumers are increasingly getting the additional benefit of rationalising and planning debt sources and products to optimise their cost of portfolio borrowings.</p> <p style='text-align: justify;'>One such innovative debt consolidation strategy is to rationalise expensive and unsecured debt sources such as Personal loans or Credit Card outstanding with secured debt which is more often than not available at much lesser interest cost. For instance, a person owning a landed property becomes eligible for taking a Loan Against Property or LAP at rates of interest which are quite attractive.</p>  <p><a href='https://www.mymoneymantra.com/home-loan/kotak-mahindra-bank.html?utm_source=google&amp;utm_medium=organic' target='_blank'><img class='alignnone size-full wp-image-12160' src='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg' alt='Lowest Home Loan Interest Rates on Kotak Mahindra Bank' srcset='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg 906w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-300x79.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-768x202.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p>  <p style='text-align: justify;'>Thus, one could take a consolidated Loan Against Property (LAP) covering one’s outstanding portfolio debt, thereby allowing one to foreclose expensive unsecured loans such as Personal loans or Credit Card outstanding. This helps to reduce overall interest and debt outstanding in one move and increasingly such strategies are being sought both by individuals and businesses.</p> <p style='text-align: justify;'>Sometimes, there is a notion that financial products like <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property.html' target='_blank'><strong>Loan Against Property</strong></a></span> are expensive as compared to vanilla home loan products given the apparent 100-200 basis points difference in the published rates. However, due to reduction in both the rate and difference in rates in recent months, even LAP products can become attractive avenues for raising medium to long term funds both for individuals and businesses.</p> <p style='text-align: justify;'>To know how small and medium enterprises and business are using LAP as a funding source, click on the following article<strong> <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/msme-financing-connecting-real-solutions/' target='_blank'>MSME Financing: Connecting to Real Solutions</a></span></strong></p> <p style='text-align: justify;'><strong><em>Indicative LAP rates are shown in the table below:</em></strong></p> <table class='table-bordered table'> <tbody> <tr> <td style='background-color: #8bc541; text-align: left;' colspan='1' width='621'><strong style='color: #ffffff;'>Bank</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Interest Rate</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Loan Amount</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Processing Fees</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Tenor</strong></td> </tr> <tr> <td style='text-align: left;' width='21%'><strong>HDFC Bank</strong></td> <td style='text-align: center;' width='19%'>8.75%</td> <td style='text-align: center;' width='16%'> 20L &#8211;  50Cr</td> <td style='text-align: center;' width='18%'>0.25%</td> <td style='text-align: center;' width='23%'>Upto 15 Years</td> </tr> <tr> <td style='text-align: left;' width='21%'><strong>Citibank</strong></td> <td style='text-align: center;' width='19%'>7.30%</td> <td style='text-align: center;' width='16%'> 20L &#8211;  10Cr</td> <td style='text-align: center;' width='18%'>1%</td> <td style='text-align: center;' width='23%'>Upto 15 Years</td> </tr> <tr> <td style='text-align: left;' width='21%'><strong>Axis Bank</strong></td> <td style='text-align: center;' width='19%'>10.50%</td> <td style='text-align: center;' width='16%'> 20L &#8211;  20Cr</td> <td style='text-align: center;' width='18%'>1%</td> <td style='text-align: center;' width='23%'>Upto 15 Years</td> </tr> </tbody> </table> <p style='text-align: justify;'>To check the latest LAP rates and to know more about the product, please refer our Loan Against Property webpage. We would be glad to assist you in your financial consolidation quest.</p>  <p><strong>Also read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/is-using-a-loan-against-property-as-a-business-loan-a-smart-choice/' target='_blank'>Is Using a Loan Against Property as a Business Loan a Smart Choice?</a></span></strong></p>  <p style='text-align: justify;'>To apply online for <a href='https://www.mymoneymantra.com/blog/5-best-home-loans-in-india/' target='_blank'><span style='text-decoration: underline;'><strong>Best Home Loans in India</strong></span></a>, Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p>  <p><a href='https://www.mymoneymantra.com/loan-against-property.html'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='379' height='45' srcset='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png 379w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/03/Loan-Against-Property-300x36.png 300w' sizes='(max-width: 379px) 100vw, 379px' /></a></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/debt-consolidation-the-lap-way/' data-a2a-title='Debt Consolidation: The LAP Way'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>The incredible growth of the Indian banking and financial services sector, in recent years, has not only made finance much more accessible, it has also brought in a wide range of financial products and services for customers to choose from.</p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/debt-consolidation-the-lap-way/' data-a2a-title='Debt Consolidation: The LAP Way'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdebt-consolidation-the-lap-way%2F&amp;linkname=Debt%20Consolidation%3A%20The%20LAP%20Way' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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An innovative debt consolidation strategy is to rationalise expensive debt sources such as Personal loans or Credit Card outstanding with secured debt.

Debt Consolidation: The LAP Way

<p><style> .myTable { width:100%; overflow:auto; } </style> </p> <p style='text-align: justify;'>A Home Loan is already a Type of Loan Against Property. The only difference is that the property in question does not belong to the applicant when he or she applies for the loan. There are several reasons why customers look for options to convert an existing loan. For instance, the EMI that they are shelling out may not be fitting their budget anymore or they may find another loan scheme more affordable.</p> <div class='myTable'> <table class='table-bordered table'> <tbody> <tr> <td style='background-color: #8bc541; text-align: left;' colspan='1' width='621'><strong style='color: #ffffff;'>Lender</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Interest rate (Min)</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Interest rate (Max)</strong></td> </tr> <tr> <td><strong><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/pnb-housing.html'>PNB Housing</a></span> </strong></td> <td style='text-align: center;' width='210'> <p>7.90%</p> </td> <td style='text-align: center;' width='124'>9.70%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/sbi-bank.html' target='_blank'><strong>SBI</strong></a></span></td> <td style='text-align: center;' width='210'> <p>6.90%</p> </td> <td style='text-align: center;' width='124'>7.90%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/bank-of-baroda.html' target='_blank'><strong>Bank of Baroda</strong></a></span></td> <td style='text-align: center;' width='210'> <p>7.00%</p> </td> <td style='text-align: center;' width='124'>7.50%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/hdfc-ltd.html' target='_blank'><strong>HDFC</strong></a></span></td> <td style='text-align: center;' width='210'> <p>6.90%</p> </td> <td style='text-align: center;' width='124'>7.60%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/bank-of-india.html' target='_blank'><strong>Bank of India</strong></a></span></td> <td style='text-align: center;' width='210'> <p>6.85%</p> </td> <td style='text-align: center;' width='124'>7.15%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/union-bank-of-india.html' target='_blank'><strong>Union</strong> <strong>Bank of India</strong></a></span></td> <td style='text-align: center;' width='210'> <p>8.00%</p> </td> <td style='text-align: center;' width='124'>8.15%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/icici-bank.html' target='_blank'><strong>ICICI</strong></a></span></td> <td style='text-align: center;' width='210'> <p>6.90%</p> </td> <td style='text-align: center;' width='124'>8.05%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/axis-bank.html' target='_blank'><strong>Axis Bank</strong></a></span></td> <td style='text-align: center;' width='210'> <p>7.45%</p> </td> <td style='text-align: center;' width='124'>7.75%</td> </tr> <tr> <td width='157'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/bajaj-finserv.html' target='_blank'><strong>Bajaj Finserv</strong></a></span></td> <td style='text-align: center;'> <p>7.00%</p> </td> <td style='text-align: center;'>12.00%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan/kotak-mahindra-bank.html' target='_blank'><strong>Kotak Mahindra Bank</strong></a></span></td> <td style='text-align: center;' width='210'> <p>6.75%</p> </td> <td style='text-align: center;' width='124'>8.30%</td> </tr> </tbody> </table> </div> <p style='text-align: justify;'>Before we look into the options to convert a <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property.html' target='_blank'><strong>Loan Against Property</strong></a></span> into a Home Loan, let us understand the basic difference between the two types of loan products.</p> <h2><span style='font-size: 12pt; color: #99cc00;'><strong>What is a Loan Against Property?</strong></span></h2> <p>Any Loan Against Property, for instance a DHFL Loan Against Property is available to those who own a property that can be provided as a security against the loan. This is one of the fastest and easiest ways to get a large loan amount in a short period of time. When an individual gets a Loan Against Property, there is no limitation on what purpose the loan can be used for. It can be used for further education, to clear any existing debts, for domestic functions or even to invest in a business that one wants to start or expand. These loans can even be used to purchase a new home or property.</p>  <p><a href='https://www.mymoneymantra.com/home-loan/kotak-mahindra-bank.html?utm_source=google&amp;utm_medium=organic' target='_blank'><img class='alignnone size-full wp-image-12160' src='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg' alt='Lowest Home Loan Interest Rates on Kotak Mahindra Bank' srcset='https://d1lt2ralzv8247.cloudfront.net/Kotak_Mahindra_Bank_Home_Loan_54d3d11ac5.jpg 906w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-300x79.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/11/Kotak-Mahindra-Bank-Home-Loan-768x202.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p>  <p style='text-align: justify;'>It is possible to get a loan against an existing commercial or residential property or even a plot of land. The amount provided depends upon the value of the property. There is a cap on the amount that one can be availed against the property value. For instance with <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/citibank.html' target='_blank'><strong>Citibank Loan Against Property</strong></a></span>, customers can get loans up to 70% of the property value or up to Rs.5 Crores, whichever amount is lesser.</p> <h2><span style='color: #99cc00;'><strong><span style='font-size: 12pt;'>What is a Home Loan?</span></strong></span></h2> <p style='text-align: justify;'>A Home Loan however is a type of mortgage loan or loan against property. The difference here is that the loan is provided to avail the property that is mortgaged until the loan amount is repaid in full. With a Home Loan, there is a limitation on what the loan amount can be used for. This loan is only provided when an individual wants to purchase a new residential property, construct a residential property or buy a piece of land for building a home. In comparison to a Loan Against Property<strong>, </strong>the loan amount offered is higher. Customers can get up to 90% of the property value as the loan amount.</p> <p style='text-align: justify;'>The repayment tenure for a Home Loan is also higher and can go up to 30 years in comparison to loans like <strong><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/dhfl.html' target='_blank'>DHFL Loan Against Property</a></span> </strong>which is available for a maximum tenure of 15 years.</p> <h2 style='text-align: justify;'><span style='font-size: 12pt; color: #99cc00;'><strong>Which Bank is Best for Loan Against Property</strong></span></h2> <p>Here is the list of top banks with their interest rates and processing charges. </p> <div class='myTable'> <table class='table-bordered table'> <tbody> <tr> <td style='background-color: #8bc541; text-align: left;' colspan='1' width='621'><strong style='color: #ffffff;'><strong>Bank</strong></strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Loan Against Property Rate</strong></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><strong style='color: #ffffff;'>Processing Fee</strong></td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/sbi-bank.html' target='_blank'><strong>SBI Loan Against Property</strong></a></span></td> <td style='text-align: center;'>8.80%</td> <td style='text-align: center;'>1%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/hdfc-bank.html' target='_blank'><strong>HDFC Loan Against Property</strong></a></span> </td> <td style='text-align: center;'>8.75%</td> <td style='text-align: center;'>0.25%</td> </tr> <tr> <td><span style='text-decoration: underline;'><strong><a href='https://www.mymoneymantra.com/loan-against-property/icici-bank.html' target='_blank'>ICICI Bank Loan Against Property</a></strong></span></td> <td style='text-align: center;'>8.90%</td> <td style='text-align: center;'>2%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/axis-bank.html' target='_blank'><strong>Axis Bank Loan Against Property</strong></a></span></td> <td style='text-align: center;'>10.50%</td> <td style='text-align: center;'>1%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/citibank.html' target='_blank'><strong>Citibank Loan Against Property</strong></a></span> </td> <td style='text-align: center;'>7.30%</td> <td style='text-align: center;'>1%</td> </tr> <tr> <td><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/pnb-housing.html' target='_blank'><strong>PNB Housing Finance</strong></a></span></td> <td style='text-align: center;'>9.80%</td> <td style='text-align: center;'>1%</td> </tr> </tbody> </table> </div> <h2><strong><span style='font-size: 12pt; color: #99cc00;'>Can Loan Against Property Be Converted Into a Home Loan?</span></strong></h2> <p style='text-align: justify;'>There are several reasons for why a Loan Against Property doesn’t not appear as economical as a Home Loan. To begin with, the <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan-interest-rates.html' target='_blank'><strong>Interest Rate for a Home Loan</strong></a></span> is much lesser than a LAP.</p> <p style='text-align: justify;'><em><strong>There are various reasons for this:</strong></em></p> <ul> <li> <p style='text-align: justify;'>A Home Loan is provided to purchase a new home and therefore also fulfills the ‘Housing For All Policy’ extended by the government.</p> </li> <li> <p style='text-align: justify;'>Loan Against Property is provided when individuals are in dire need of financial assistance. This is why it is normally assumed that the borrower will be willing to pay a higher rate of interest.</p> </li> <li> <p style='text-align: justify;'>The risk for the bank is higher with a Loan Against Property. In case of <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/home-loan.html' target='_blank'><strong>Home Loans</strong></a></span>, the loan is meant for a property that the person is yet to purchase. So, he or she is likely to be more careful about repayments. On the other hand, with a Loan Against Property, any repayment issues also make it harder for the bank or the lender to exit. While the customer may be willing to risk the property, it is much harder for the bank to make a sale and recover from the property.</p> </li> <li> <p style='text-align: justify;'>Home Loans up to Rs.35 Lakh come under the purview of the PSL or Priority Sector Lending while the Loan Against Property does not have any such provision.</p> </li> </ul> <p style='text-align: justify;'>Besides this, a Home Loan has a longer repayment tenure making the EMI more affordable as well. In addition to this, customers can avail tax benefits that are not available with a Loan Against Property.</p> <p style='text-align: justify;'>However, it is not possible to convert an existing Loan Against Property into a Home Loan. This is because the purpose, the nature and the conditions of both the loans are entirely different. It may seem like these two types of loans are the same as they both require the customer to pledge a property. However, conversion is not possible because they are extremely different from one another as we have already discussed above.</p> <p style='text-align: justify;'>However, if customers are unable to manage a large EMI that is to be shelled out against the LAP, there are certain options available to reduce the burden. The best option is to transfer the balance of the existing loan amount into a bank that is offering a better rate of interest or a longer repayment tenure.</p> <p style='text-align: justify;'>With a balance transfer, it is thus possible to transfer the outstanding loan from one financial institution to another. Some banks however require customers to have a minimum balance outstanding in order to make the transfer. The repayment record for the existing loan should also be clean. Usually, the borrower should have made at least the last 12 repayments on time. The new bank or financial institution may also require the customer to have a Credit Card or an additional loan in good standing at the time of application.</p> <p style='text-align: justify;'>Once these eligibility criteria are fulfilled, it is possible to transfer the Loan Against Property to get better features such as the provision of Top Up Loans etc.</p>  <p><strong>Also Read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/loan-against-property-5-important-rules-to-follow/' target='_blank'>Loan Against Property: 5 Important Rules To Follow</a></span></strong></p>  <p style='text-align: justify;'>To apply online for <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/5-best-home-loans-in-india/' target='_blank'><strong>Best Home Loan in India</strong></a></span>, Credit Cards, Secured Loans and Unsecured Loans, visit <strong>www.mymoneymantra.com</strong>, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p>  <p style='text-align: justify;'><a href='https://www.mymoneymantra.com/home-loan.html?utm_source=google&amp;utm_medium=organic' target='_blank'><img class='alignnone size-full wp-image-12158' src='https://d1lt2ralzv8247.cloudfront.net/Home_Loan_Festival_offers_2_1_24d3e33e42.jpg' alt='Home Loan Festival Offers' srcset='https://d1lt2ralzv8247.cloudfront.net/Home_Loan_Festival_offers_2_1_24d3e33e42.jpg 906w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/10/Home-Loan-Festival-offers_2-1-300x79.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2020/10/Home-Loan-Festival-offers_2-1-768x202.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p> <p><style type='text/css'>   .home-content table p {     padding: 0 !important;   }   @media only screen and (max-device-width: 768px) {     .home-content .table-wrap {       overflow-x: scroll;     }     .table-responsive>.table>thead>tr>td, .table-responsive>.table>tbody>tr>td, .table-responsive>.table>tfoot>tr>td {       white-space: initial;     }   } </style> <p> <script type='text/javascript'>   $(document).ready(function () {     $('.home-content .table').addClass('table-condensed');     $('.home-content .table').wrap($('</p> <div class='table-wrap'></div> <p>'));   }); </script></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/can-loan-property-converted-home-loan/' data-a2a-title='Can a Loan Against Property be Converted into a Home Loan?'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>A Home Loan is already a type of Loan Against Property. The only difference is that the property in question does not belong to the applicant when he or she applies for the loan. There are several reasons why customers look for options to convert an existing loan.</p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/can-loan-property-converted-home-loan/' data-a2a-title='Can a Loan Against Property be Converted into a Home Loan?'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fcan-loan-property-converted-home-loan%2F&amp;linkname=Can%20a%20Loan%20Against%20Property%20be%20Converted%20into%20a%20Home%20Loan%3F' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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Loan Against Property conversion into Home Loan Check Mortgage Loan Eligibility ✔Low Processing Fees ✔Tenure 30 Years ✔769 EMI Per Lakh.

Can a Loan Against Property be Converted into a Home Loan?

<p style='text-align: justify;'>Loans Against Property (LAP) are secured loans where you pledge your residential or commercial property as collateral. This means that banks have the margins to offer good interest rates and longer loan durations. Banks will lend anywhere between 65 to 70% of the market value of property. These loans are offered on floating interest rates for periods going as far as 15 to 20 years.</p> <h2 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>Understand Loan against Property</b></span></h2> <p style='text-align: justify;'>These Loans Against Property are available for personal usage as well as for business purposes though some banks may deny the loan if they conclude that money will be used for speculative purposes.</p> <table class='table-bordered table'> <tbody> <tr> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/buy-house-without-money-payment/'><strong style='color: #ffffff; text-decoration: underline;'>Buy a House Without Down Payment</strong></a></span></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/have-you-booked-your-home-under-pradhan-mantri-awas-yojana-yet/'><strong style='color: #ffffff; text-decoration: underline;'>Book Your Home Under PMAY Yojana</strong></a></span></td> </tr> </tbody> </table> <p style='text-align: justify;'>Being the largest bank in India, the State Bank of India has a large number of choices for those who want to apply for a loan against property.<span class='Apple-converted-space'>  </span>These property loans are available for a variety of customers, i.e., from Rs 10 lakh to Rs 7.5 crore, depending upon customer profile and property in question. SBI will lend money to both self-employed individuals and salary earning individuals.</p> <p style='text-align: justify;'>The main advantage of <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/sbi-bank.html' target='_blank'><strong>SBI Loan Against Property</strong></a></span> is its unbeatable processing charge. SBI levies one percent of the borrowed amount as processing fee, subject to a maximum of Rs. 50,000 plus taxes. No other lender in India offers such a good deal on processing charges.</p> <h2 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>The role of CIBIL Score</b></span></h2> <p style='text-align: justify;'>Many times, you will come across people whose loans were rejected because of the bad CIBIL score. The banks want to lend to people who they are sure will return their loans. When you apply for Loan Against Property, the bank will ask you for many documents, including your address proof and income proof. Based upon these details, they find out your <span style='text-decoration: underline;'><strong><a href='https://www.mymoneymantra.com/cibil-score.html' target='_blank'>CIBIL Score</a></strong></span>, which is offered by the Credit Information Bureau (India). This score is a three-digit number given to every borrower depending upon many factors like how well they are repaying their current EMIs, have they missed EMIs, how much credit they are eligible for along with patterns of credit utilisation in the past.</p> <p style='text-align: justify;'><a href='https://www.mymoneymantra.com/loan-against-property.html?ref=lapblog-topbanner' target='_blank'><img class='alignright size-full wp-image-1963' src='https://d1lt2ralzv8247.cloudfront.net/LAP_6a6f5e5d37.jpg' alt='Best Deals on Loan Against Property Online' srcset='https://d1lt2ralzv8247.cloudfront.net/LAP_6a6f5e5d37.jpg 868w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/04/LAP-300x35.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/04/LAP-768x88.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p> <p style='text-align: justify;'>The banks and other lenders use this CIBIL score to identify and judge if a person who has asked them for a loan will be able to repay the loan and will not default in EMIs. The score can be used to predict bad debt-related risks for as long as one year. Credit score above 800 mark is considered excellent, and banks offer the best deals to these people. A rating below 800 but above 650 is considered acceptable by most lending institutions. A credit score below the 650 is generally considered to be too low, and banks will be hesitant to loan out to people with these scores.</p> <p style='text-align: justify;'><span style='text-decoration: underline;'><strong>Considerations for borrowing Loan Against Property when you have low CIBIL score:</strong></span></p> <p style='text-align: justify;'><strong>1. Be ready for lower loan amounts:</strong> If you have suffered in terms of your CIBIL score, you will also be subject to the problem that banks will not be ready to lend you as much as they will be ready to lend to people with a higher credit score. This means that other customers will be able to borrow as much as 70% or even more of the value of the property they pledge. When you apply for Loan Against Property, you will be stuck to a much lower borrowing limit. Perhaps as low as only 55% of the property value. You can discuss with the loan aggregator to see if a better deal can be made available.</p> <p style='text-align: justify;'><strong>2. Be ready for high-interest rates:</strong> People who have the best Credit Scores will always get the best <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property-interest-rates.html' target='_blank'><strong>Loan Against Property Interest Rates</strong></a></span>. Commonly published interest rates are for people who have an acceptable range of credit score. Banks will always charge the highest interest rates to the people who have the lowest credit rating that they can lend on. In fact, in many cases, you can expect that people with low CIBIL score will always get at least 3% to 5% higher interest rates than those with a good credit score. Again, try to negotiate with the lender to see the best deal you can get.</p> <p style='text-align: justify;'><strong>3. Be ready for high processing charges:</strong> Low credit scores also mean that banks and NBFCs will charge you very high processing fees. Lenders often do a lot of extra reviews and due diligence for people who have a low credit score. After all, they have no incentive to lure people who have low credit score. On the other hand, they will always offer the lowest processing charges to people with good credit score because they want to lend to people who have a better record of repayment.</p> <p style='text-align: justify;'><strong>4. Be ready for longer processing time:</strong> As discussed above, since the bank is going to do a lot of checks and deeper due diligence to determine if they should lend to you or not, the overall processing time will take much longer. While people with good credit can get their loans approved in a matter of days, rarely more than 1 week, people will low credit score will have to wait for around two to three weeks before their loans get approved. It is best to keep in touch with the lender over this period and get regular updates on your application status.</p> <p style='text-align: justify;'><strong>5. Be ready for extra documentation and paperwork:</strong> As discussed, people with a good credit score can get loans with minimal documentation. People who do not have that good a credit score, however, will be required to submit many more documents, for example, documentation related to property taxes, utility bills multiple proofs related to income channels, and tax history. There is simply no way around this. You will have to be patient and comply with all the documents that the lender asks for. The best you can do is provide all documentation as promptly as you can.</p> <p style='text-align: justify;'><strong>6. Be ready for fewer options and multiple rejections:</strong> Simple but true fact is that you will have lesser borrowing options in every aspect. Many lenders may not even be ready to consider the applications of people with a low credit score. In many cases, they will reject your application for the smallest of discrepancies in the documentation or if they think there is even a chance of misrepresentation of any kind. The best approach is not to lose heart in case of multiple rejections and try if any lender is ready to give a loan with NA or NH in the credit history section.</p> <p style='text-align: justify;'>Always keep in mind that while it may be very hard to get Loan Against Property with a low CIBIL score, it is not completely impossible. You just have to try a bit extra hard and be ready for a high-interest rate and many other charges.</p> <p class='p1'><strong>Also Read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/dos-and-donts-of-mortgaging-property-without-a-proof-of-income/' target='_blank'>Dos &amp; Don’ts of Mortgaging Property without a Proof of Income</a></span></strong></p> <p style='text-align: justify;'>To apply online for <a href='https://www.mymoneymantra.com/home-loan.html' target='_blank'>Home Loan</a>, <a href='https://www.mymoneymantra.com/personal-loan.html' target='_blank'>Personal Loan</a>, Credit Card, Business Loan &amp; LAP visit <a href='https://www.mymoneymantra.com/' target='_blank'><strong>www.mymoneymantra.com</strong></a>, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p>  <p><a href='https://www.mymoneymantra.com/loan-against-property.html?utm_source=google&amp;utm_medium=organic'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='300' height='43' /></a></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/know-this-before-you-apply-for-loan-against-property-with-bad-cibil-score/' data-a2a-title='Know This Before You Apply for Loan Against Property with Bad CIBIL Score'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

<p>Loans Against Property (LAP) are secured loans where you pledge your residential or commercial property as collateral. This means that banks have the margins to offer good interest rates and longer loan durations. </p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/know-this-before-you-apply-for-loan-against-property-with-bad-cibil-score/' data-a2a-title='Know This Before You Apply for Loan Against Property with Bad CIBIL Score'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fknow-this-before-you-apply-for-loan-against-property-with-bad-cibil-score%2F&amp;linkname=Know%20This%20Before%20You%20Apply%20for%20Loan%20Against%20Property%20with%20Bad%20CIBIL%20Score' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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With low credit score it becomes tricky to avail of the best rate of interest and requisite loan amount. Here is a guide to help you understand what it takes to get an approval on a Loan Against Property with bad CIBIL Score.

Know This Before You Apply for Loan Against Property with Bad CIBIL Score

<p style='text-align: justify;'>Mortgaging a property is a very good way to obtain low interest, secured debt. It is easy for a banker to lend money when you pledge a property. This assures the lender that you are committed to returning money and getting back control of the property. However, there is another catch, what if you want to get a Loan Against Property when you do not have income proof? This is difficult but not impossible. If you follow some basic ‘Dos and Don’ts,’ you will able to get a good deal when you mortgage the property without any income proof. </p> <h2 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>Do these things!</b></span></h2> <p style='text-align: justify;'><b>Get a joint loan with a co-borrower:</b> This is a very basic and simple way to get a loan when you do not have your income proof. Find a family member who does have income proof. Try to convince them to become a co-borrower with you when you <a href='https://www.mymoneymantra.com/loan-against-property.html' target='_blank'><span style='text-decoration: underline;'><b>Apply for Loan Against Property</b></span></a>. This is going to be rather easy considering two things. First that your family member has a clearer picture of how you are making money for your regular expenses, and second, unlike a bank, your family member is not bound by strict rules related to documentation.</p> <table class='table-bordered table'> <tbody> <tr> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/buy-house-without-money-payment/'><strong style='color: #ffffff; text-decoration: underline;'>Buy a House Without Down Payment</strong></a></span></td> <td style='text-align: center; background-color: #8bc541;' colspan='1' width='621'><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/have-you-booked-your-home-under-pradhan-mantri-awas-yojana-yet/'><strong style='color: #ffffff; text-decoration: underline;'>Book Your Home Under PMAY Yojana</strong></a></span></td> </tr> </tbody> </table> <p style='text-align: justify;'><b>Present your income tax returns: </b>Let us assume that you are not making income in the normal salary and are using freelance methods to get money for regular expenses. This still means that you are filing Income Tax Returns, and TDS is also being deducted for you. In some cases, the banks can be convinced to consider your Income Tax Returns and TDS Form 16 in place of income proofs when you apply for LAP. These are valid government documents to show that you are making money. The main catch with these documents is that it totally becomes a matter of lender’s discretion if they want to consider these tax documents as a replacement for other income proofs.<br />  <span class='Apple-converted-space'>  </span></p> <p style='text-align: justify;'><b>Share your savings account details:</b> Your Savings Account is the nerve centre of all your financial activity. It is where all your money comes in, from where all your money goes out to different places. If you want to get a clear picture of your cash flow, look at your Savings Account statement for the last one year. Not many banks may be willing to accept your Bank Statement or Income Tax Papers individually as proof of income. When you present documents related to these together, you will be able to convince the lenders that you have a decent cash flow and will be able to service the debts.</p> <p style='text-align: justify;'><b>Share the details of your long-term savings:</b> Almost everyone has some long-term savings. Some people have money invested in PPF or NSC. Others have money invested in SIP, mutual funds, or stock holdings. While these might not be direct sources of income, but you can use them to show the bankers that you have long term capital and can take care of loans that you borrow. Besides, banks can also gauge that a person who has money stored in long term savings and investments is a financially mature person who can be relied upon to pay their dues.</p> <p style='text-align: justify;'><a href='https://www.mymoneymantra.com/loan-against-property.html?ref=lapblog-topbanner' target='_blank'><img class='alignright size-full wp-image-1963' src='https://d1lt2ralzv8247.cloudfront.net/LAP_6a6f5e5d37.jpg' alt='Best Deals on Loan Against Property Online' srcset='https://d1lt2ralzv8247.cloudfront.net/LAP_6a6f5e5d37.jpg 868w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/04/LAP-300x35.jpg 300w, https://www.mymoneymantra.com/blog/wp-content/uploads/2018/04/LAP-768x88.jpg 768w' sizes='(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px' /></a></p> <p style='text-align: justify;'><b>Accept a lower Loan to Value ratio:</b> When you take out a Loan Against Property, you will not get a loan amount equal to what is the market value of the property. <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property/hdfc-bank.html' target='_blank'><b>HDFC Bank Loan Against Property</b></a></span> is offered at 65% of property value. Even the best of customers who have stellar Credit Scores and provide huge business to the banks get a maximum of 70% of the property value. If you are approaching the bank to get a loan against property but do not have income proof, one choice is to accept a lower loan to property value ratio. Check with the lender about how low you can go. Be ready to accept as low as 55% LTV.</p> <p style='text-align: justify;'><b>Try instant personal lending apps:</b> This is a way in which you circumvent the entire no income proof thing. Instead of choosing a Loan Against Property, you can choose instant Personal Loan apps like Money Tap or MoneyView. Many of these apps do not actually require income proofs for small loan amounts. If you think you can do with a lower loan amount, you can choose these apps.<span class='Apple-converted-space'>  </span>Due to competition, they can offer interest rate closer to <b><span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/loan-against-property-interest-rates.html' target='_blank'>Loan Against Property Interest Rates</a></span>,</b> so you get a decent deal.</p> <h2 class='p1'><span style='font-size: 12pt; color: #99cc00;'><b>Don’t do these things!</b></span></h2> <p style='text-align: justify;'><b>Don’t go too low on loan to property value ratio: </b>As discussed, when you are taking a Loan Against Property you will not get loans up to 100% value of property. You will have to go low on the amount you can borrow as compared to the value of property you are pledging. The lowest recommended ratio is generally 55%. If the situation is extremely serious, you may consider going another 5% down to 50%. In no circumstances should you go even a percentage point below this number. Anything below 50% and you are actually better off looking for alternatives to Loan Against Property.</p> <p style='text-align: justify;'><b>Forging income documentation: </b>Some people will suggest you create fake income proofs. With a bit of research on the internet and a simple printer attached to a computer, you might be able to print fake salary slips. You will not be able to prove these as a valid income because you will not have the money trail in any bank to prove that you got this salary. Similarly, banks will conduct employment checks when they process your loan requests. Once the red flag is raised, you will be lucky if you just get off with a rejected loan application. Banks may even file criminal cases against you for fraud and cheating. Always be truthful in your loan applications.</p> <p style='text-align: justify;'><b>Choosing non-authorised lenders:</b> Loans in India can only be given by companies which have been authorised to do so by the Reserve Bank of India. Do not try to get loans from non-authorised lenders. Always check properly if the firm you are dealing with is an authorised lending firm or not. Dealing with non-authorised lenders will mean that you will run the unnecessary risk to your life and limb as well as to your property.</p> <p style='text-align: justify;'>Remember that when you apply for a loan against property, things may seem difficult if you do not have income proof. Still, with some careful considerations, you can secure a good loan amount and tread through the financial crisis with much ease.</p> <p class='p3'><strong>Also Read: <span style='text-decoration: underline;'><a href='https://www.mymoneymantra.com/blog/dos-and-donts-of-applying-for-a-loan-against-property/' target='_blank'>Dos &amp; Don’ts of Applying for a Loan Against Property</a></span></strong></p> <p style='text-align: justify;'>To apply online for <a href='https://www.mymoneymantra.com/home-loan.html' target='_blank'>Home Loan</a>, <a href='https://www.mymoneymantra.com/personal-loan.html' target='_blank'>Personal Loan</a>, Credit Card, Business Loan &amp; LAP visit <a href='https://www.mymoneymantra.com/' target='_blank'><strong>www.mymoneymantra.com</strong></a>, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.</p>  <p><a href='https://www.mymoneymantra.com/loan-against-property.html?utm_source=google&amp;utm_medium=organic'><img class='aligncenter size-full wp-image-1714' src='https://d1lt2ralzv8247.cloudfront.net/Loan_Against_Property_476ac98202.png' alt='Apply for a LAP' width='300' height='43' /></a></p> <div class='addtoany_share_save_container addtoany_content_bottom'><div class='a2a_kit a2a_kit_size_32 addtoany_list' data-a2a-url='https://www.mymoneymantra.com/blog/dos-and-donts-of-mortgaging-property-without-a-proof-of-income/' data-a2a-title='Dos & Don’ts of Mortgaging Property without a Proof of Income'><a class='a2a_button_facebook' href='https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='Facebook' rel='nofollow' target='_blank'></a><a class='a2a_button_twitter' href='https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='Twitter' rel='nofollow' target='_blank'></a><a class='a2a_button_linkedin' href='https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='LinkedIn' rel='nofollow' target='_blank'></a><a class='a2a_button_whatsapp' href='https://www.addtoany.com/add_to/whatsapp?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='WhatsApp' rel='nofollow' target='_blank'></a><a class='a2a_button_wechat' href='https://www.addtoany.com/add_to/wechat?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='WeChat' rel='nofollow' target='_blank'></a><a class='a2a_button_pinterest' href='https://www.addtoany.com/add_to/pinterest?linkurl=https%3A%2F%2Fwww.mymoneymantra.com%2Fblog%2Fdos-and-donts-of-mortgaging-property-without-a-proof-of-income%2F&amp;linkname=Dos%20%26%20Don%E2%80%99ts%20of%20Mortgaging%20Property%20without%20a%20Proof%20of%20Income' title='Pinterest' rel='nofollow' target='_blank'></a></div></div>

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Do you want to avail of a loan without an income proof? This is difficult but not impossible. If you follow some basic Dos and Don’ts, you can indeed get a good deal mortgaging your property.

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