Loan Against Property Offers Starting @9% p.a.


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Pre-Approved Loan Against Property @9% p.a 

Up to Rs. 15 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applying for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holidays and much more. Higher loan amounts are available for select customers.

Learn More About Loan against Property

Loan against Property Details


Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as a collateral to support the finance provided by the lender. The margin for Loan against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value). 

Apply for IDFC Loan Against Property

Features and Benefits of Loan Against Property

  • Easy to get: LAP is a secured loan making it easier for lenders to offer money to the borrower as it is backed by collateral.
  • Longer tenure: Usually banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate repayment period of up to 20 years.
  • Lower interest rate: In comparison to Personal Loans, a LAP loan has a lower rate of interest. The reason is the security offered to the banks.
  • Lower EMI: When you have longer tenure and a lower interest rate, the EMIs are bound to be lower.
  • Flexibility: Various banks have flexible loan products in this category, including term loans, overdraft facilities, reverse mortgage, etc.
  • Types: LAP can have various types, such as loan against residential/commercial property, loan against rent receivables, reverse mortgage, and so on.
  • Tax benefits: You get benefits tax benefits if you avail a loan against property for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to be mortgaged to the bank. You might carry out repairs to your home but avail a mortgage loan by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.

Loan Against Property Eligibility


Each lender has their own eligibility criteria for availing LAP. Below are some common criteria to be eligible for a mortgage loan: 

  • Age: Minimum 21 years and maximum 65 years.
  • Profession: Both self-employed individuals and salaried persons with a regular source of income are eligible for a Loan Against Property.
  • Joint applications: Co-applicants are permissible. Lenders can accept the income of the co-applicants for arriving at the eligibility.
  • Ownership: 
    • The applicant should have unencumbered property in their name. The property can be residential, commercial, or industrial. 
    • Agricultural land is not acceptable as security for the loan. 
    • Many banks stipulate that the property should either be vacant or self-occupied. 
    • Some of the banks do not consider a property that is let out on rent or lease to third parties. 
    • Some lending institutions sanction loan against vacant residential plots
  • Margin: The margin requirement for Loan Against Property can be 10% to 50% of the market value of the property.
  • Current obligations: The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs including the proposed one for the Loan against Property. Hence, it is imperative for the borrowers to declare their current obligations.
  • Credit history: The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.

Mortgage Loan Interest Rate & Charges applicable by Property Type

  • Upfront fees: Many banks follow the procedure of collecting upfront fees for processing the application. They adjust the fees with the processing fee in case they approve the loan. Remember, this is a non-refundable fee. It is usually in the range of Rs. 3,000 to Rs. 5,000.
  • Processing fees: The regular processing fees are in the range of 0.50-1.00%.
  • Valuation charges: Normally, these charges are included in the processing fees. But, some banks charge it as a separate entity. These charges are payable to the valuation engineer who determines the value of the property and submits the valuation report to the bank.
  • Legal scrutiny charges: Similar to the valuation charges, some banks include these charges in the processing fees. At times, you have to incur these charges separately. It is payable to the advocate who conducts the legal search of the property and submits the Legal Scrutiny Report.
  • Mortgage registration charges: Some states in India do not require the registration of the equitable mortgage. It is compulsory in states like Tamil Nadu. You have to incur these charges (0.5% of the loan amount subject to a maximum of Rs. 25,000 as stamp duty and  Rs. 5,100 as equitable mortgage registration charges).
  • Prepayment charges: Some banks charge prepayment charges to the tune of 2% to 5% of the outstanding loan It depends from bank to bank.
  • Insurance: Insurance of the property to be mortgaged to the bank is compulsory. Also, some banks have tie-ups with insurance companies who market their products like loan insurance, health insurance, and personal accident coverage. These are optional charges.

You can also check Loan Against Property Interest Rate

Loan Against Property Interest Rates of All Banks and NBFCs 2023

Bank NameInterest RateProcessing Fees 
HDFC Bank9.50% - 11.00%Up to 1.50% of loan amount + taxes
IDFC First9.00% - 20.00%Up to 3% of Loan Amount
HSBC Bank9.75%1% of loan amount + GST
Kotak Mahindra Bank9.50% - 10.50%1% of loan amount + GST
PNB Housing9.24% - 12.45%2% of loan amount + GST
State Bank of India10.10% - 11.65%Up to 1% of loan amount
Federal Bank11.15% - 14.80%0.50% of loan amount
Home First12.80% - 18.50%Rs 2,500 + GST
Bank of India10.10%Up to 0.50% of loan amount
Bank of Baroda10.85% - 16.50%Up to 1% of loan amount
IDBI Bank9.50% - 11.45%1% of loan amount
Central Bank of India9.75% - 13%Up to 1% of loan amount
Bank of Maharashtra10.95% - 11.95%1% of loan amount + GST
Jammu & Kashmir Bank11.45%Up to 1% of loan amount + GST
South Indian Bank13.15% - 14.40%1% of loan amount
YES Bank8.85%Up to 1% of loan amount + GST

Apply HDFC Loan Against Property

Loan against Property Process

  • Visit the official website of the lender to fill in the online loan application form or fill it instantly through our website.
  • On completion of this mortgage loan process, you will be able to choose the offer that suits your requirements. You should keep your application form and documents ready. We have a special team to assist you in this regard at no extra cost.
  • The lender has the responsibility of verifying the KYC and income proof documents. The lender would like to inspect the property and have a discussion with the borrower to obtain first-hand information about the borrower's employment, business, income, and investments.
  • Banks have advocates on their panel to carry out a legal search for the last 30 years to ensure the property is free from any encumbrances and that the borrower has the clear title to it. It is a prerequisite for the equitable mortgage to be valid and binding on the borrower.
  • The evaluation of the property is the next step following which the banks appraise the loan application for the eligibility amount.
  • On the approval of the loan, the bank sends you the sanction letter that you have to go through and agree to the terms and conditions. MyMoneyMantra helps you in this regard.
  • Finally, you have to execute the equitable mortgage and register it (if registration is compulsory - It is not so in some states).
  • We help you with the disbursement process as well.

How to Get the Best Mortgage Loan?

  • Do a thorough market research about the best mortgage loan providers in India.
  • Compare interest rates, fees & charges, features, documentation requirement, eligibility and other factors of the top lenders.
  • Check your eligibility, CIBIL score, and repayment capacity.
  • Opt for a reputed lender who can offer the best loan against property deal that suits your finances.
  • Approach the lender to apply for loan against property.

Types of Loan Against Property


Types of loan against property can be classified based on the purpose for which you avail the loan.

  • Business Expansion Loans: Business entities can avail this facility for acquiring new machinery, purchase of plant, meeting working capital requirements, and invest in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55% whereas the LTV in the case of residential property is in the range of 65-70%.
  • Working Capital Overdraft Facility: Banks sanction overdraft facilities against the property for meeting the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures:
    • Property value and nature of the property
    • Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.
  • Personal Expenses: Individuals can also avail Loan against the Property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.
  • Home Renovation: Usually, people do not avail this loan for renovating homes as there are separate schemes available at comparatively lower LAP interest rates. However, there can be circumstances when the borrower might have to resort to avail a Loan against Property for home renovation.
  • Lease Rental Discounting: Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental

Mortgage Loan EMI Calculator


You can use the MyMoneyMantra EMI Calculator to calculate your Loan Against Property EMI. To do the EMI calculation, open our LAP EMI Calculator and just enter the details required to know the result. Along with the EMI, you also get a full chart showing the breakup of principal and interest repayment throughout the entire duration of the loan.

Documents Required for Mortgage Loan


Following are the documents required for mortgage loan:

 Document TypeDocuments Acceptable 
Identity Proof
  • PAN Card
  • Aadhaar Card
  • Voter ID
  • Passport
  • Driving Licence  
 Address Proof
  • Registered Rent agreement
  • Aadhaar Card
  • Driving Licence
  • Lease agreement
  • Passport
  • Latest gas/Electricity bill
Income/Financial Documents


  • Salary slips for the last 6 months for salaried employees (In addition, IT returns for the previous 3 years along with Form 16).
  • IT returns for the past 3 years for self-employed persons (Some banks accept 2 years IT returns as well).
  • Statement of A/c for the past 1 year where your salary is credited (in the case of salaried people).
  • Profit and Loss statement and Balance sheet for the last 2 years in the case of self-employed persons.
  • Sales tax, GST registration certificates, if applicable.
  • Partnership deed in case of partnership firms (if the applicant is one of the partners or the firm itself).
  • Certificate of Incorporation for limited companies(if the applicant is one of the directors or the company itself).
Property Documents 
  • Copies of all property documents that can establish the chain of ownership for the past 30 years
  • Encumbrance certificate for 30 years
  • Property tax paid receipt
Other Documents
  • Loan application form
  • Processing fee cheque

Prepayment of Loan Against Property


The best part about loan against property is that you can prepay your loan before the end of the repayment tenure if you wish to. As per the RBI’s rules, this facility does not involve any prepayment charges if the loan is based on floating mortgage interest rates. For other variants, lenders may charge prepayment charges to the tune of 2% to 5% of the outstanding loan. It depends from bank to bank.

Why Apply for a Loan against Property with MyMoneyMantra?


Many types of mortgage loans exist in the industry, i.e., mortgages, commercial mortgages, and industrial mortgages. Each bank has its product and interest rate. It is tedious to compare the products offered by a range of banks.

MyMoneyMantra can help you in this regard. We procure information from various sources and display it on a single screen thereby allowing you to compare a range of products. It helps you make an informed decision. We help you with other aspects of the deal like demographics, income and repaying capacity, and so forth.

At MyMoneyMantra, you have access to:

  • The lowest rate of interest: The comparison on the screen allows you to choose the lowest rate on offer.
  • Lowest processing fees: Usually, banks charge processing fees to the extent of 0.50-1%. As there is an involvement of a high amount, processing fees can constitute a significant chunk of your expenses.
  • Easy documentation: The credit team at MyMoneyMantra helps in completion of documentation formalities.
  • Higher Loan to Value Ratio (LTV): The LTV differs from bank to bank. At MyMoneyMantra, you will be able to compare the various margin rates and choose the one most suitable for you.
  • Prepayment clauses: These are hidden charges that borrowers usually ignore. It can be in the range of 2-5%. MyMoneyMantra helps you compare the prepayment clauses of various banks and help you find the best choice.
  • Transaction charges: LAP requires the creation of an equitable mortgage of property. It can cost you a lot of money ranging from advocate fee, evaluation fee, stamp duty on mortgage registration, and so on. Some banks include the advocate fee and evaluation fee in their processing fee structure whereas some banks charge separately. MyMoneyMantra helps you make this distinction and gets the deal most beneficial for you.

MyMoneyMantra has specialists who have experience of over 28 years in the field of Loan against Property and can help you:

  • Assess your demographic and personal profile.
  • Examine your previous repayment record.
  • Understand the various terms used by bankers such as Legal Scrutiny Report (LSR), and the other policies of the banks in connection with a Loans against Property.
  • Understand the fine print that people frequently overlook.

✅ What types of properties are accepted by lenders to provide Loan Against Property (LAP)?

  • Industrial properties, including factories, warehouses, and processing units.
  • Commercial properties, including malls, complexes, shops, office buildings, and hotel buildings.
  • Residential properties, including residential homes, apartments, flats, and individual houses.
  • Schools, hospitals, cinema halls and other properties .
  • It can also be provided against non-agricultural land.
  • LAP is also offered against unbuilt/under construction property if it falls under the list of approved builders of banks/ NBFCs.

✅ Which bank is best for loan against property?


ICICI, IDFC Bank, Kotak Bank, HDFC, SBI, Federal bank are some of the banks which are offering great deals on loan against property.

✅ What is a mortgage loan?


A mortgage loan is a loan provided by banks and other financial institutions against the mortgage of property or other assets for personal as well as business purposes.

✅ How can I apply for a mortgage loan?


You can apply for a mortgage loan through MyMoneyMantra, through the lender’s website, visiting the nearest branch of the loan provider or by calling on their customer care number.

✅ What is a reverse mortgage loan?


A Reverse Mortgage Loan is a credit facility which provides an additional income source to senior citizens of India, who have a self-owned or self-occupied home in India. It is a financial arrangement designed for senior citizens to fulfil their funding needs.

✅ What is the maximum loan tenure available under LAP?


Most lenders a maximum repayment tenure of 15 to 25 years for LAP.

✅ How much loan we can get against property?


You can get as much as 90% of property’s market value as a loan against your property, depending on your property’s value.

✅ Can NRIs avail loans against property?


Yes, NRIs as well as PIOs can get LAP in India if they are salaried, work for a reputed organization in selected countries and own a residential/commercial property in India.

✅ What is the difference between home loan and Loan Against Property?


A home loan is availed for the purchase/construction/renovation/repair of a residential house property whereas LAP is availed to fulfill any personal or business requirement just like a personal loan.

✅ How much CIBIL score is required for loan against property?


Individuals with a minimum CIBIL score of 600 or above acain avail LAP.

✅ How to get a loan against property without income proof?

  • Elaborate your income to the lender.
  • Maintain a high average monthly balance in your savings bank account.
  • Opt for a lower loan-to-value (LTV).
  • You can also consider Peer-to-Peer lending alternatives.
  • Apply with a co-applicant.

✅ What is the process of Mortgage loan?

  • Fill in the application form and submit it along with the required documents.
  • Lenders will verify all the details.
  • The property to be mortgaged will be evaluated by the lender.
  • After evaluation and your eligibility check, your application will be approved if you are eligible.
  • You will receive the loan agreement.
  • If you agree with all the terms and sign the document, the loan amount will be transferred to your account within a few days.

You can also check mortgage loan interest rate

✅ Can I get a mortgage loan with bad credit?


Yes. Being a secured loan, your application can be approved with a low credit score as well. You can also co-apply for the loan with your earning spouse or other co-applicants.