• 2 Million+ Happy Customers

  • 1500+ Relationship Managers

  • Rs. 30,000 Cr+ Business Done

  • 60+ Bank & NBFCs

  • 100+ Bank Awards

  • 500+ Cities Serviced

Loan Against Property

Type slowly and select city from the suggestions.
Type slowly and select city from the suggestions.
I don't know the market value

Loan Against Property

Loan Against Property (LAP) is a type of secured loan. A secured loan is a loan where the borrower mortgages his or her asset or property as collateral to the bank or the other lending institution. LAP could be used for several personal and professional needs such as house renovation, business expansion, purchase of a new machinery and other requirements. Typically the banks and other lending institutions offer loan against residential, commercial and industrial property.  A borrower usually gets a fixed percentage of the property value known as LTV (Loan To Value) as loan amount against the property. The loan to value (LTV) varies from one bank to another. Usually, the loan to value ranges from 40% to 70% of the property value. The borrower can continue using the property that is mortgaged with the bank for its respective use.  

However, both LAP and Personal Loan could be used for personal and professional needs but the interest rates of LAP are comparatively lower than a Personal Loan. This loan variant can be availed by salaried, self-employed professionals and self-employed business owners. The banks offer LAP either at the fixed rate of interest or at an adjustable rate.  


Purpose of Loan Against property

Loan Against Property could be used for several purposes mentioned below:

  • Business Expansion
  • Purchase of a new property
  • Purchase of raw material
  • For immediate working capital requirement
  • Acquiring a new machinery
  • Investment in new technology for business


 Key Facts About Loan Against Property (LAP)

Loan Against Property can be further understood with the below mentioned key facts:

Loan Against Property Interest RateStarting from 8.50% 
Loan to Value (LTV) 
  • Ranges from 60% to 70%
  • LTV as per different property types:
  1. Commercial property- 55-65%
  2. Residential property-65-70%
  3. Industrial property- 40-55%
Loan TenureFlexible loan tenure up to 15 years, however, the tenure varies depending on the age of the borrower 
Processing FeeRanges from 0.50% to 1% of the loan amount
Loan Amount 
  • Minimum 3 Lakhs
  • Maximum 100 Crores  (Based on the type of property and loan purpose)
Who can Apply? 
  • Salaried Individual
  • Self-Employed Individual
  • Professional  
  • NRI (Subject to documents verification)
Prepayment of LoanPrepayment could vary from 2-5% (Read loan sanction terms carefully) 



Eligibility Criteria for Loan Against Property (LAP)

To obtain Loan Against Property the borrower should fulfil the eligibility criteria. The following factors affect the loan eligibility of the borrower:

Eligibility Factor 
  • Minimum 21 years (At the time of loan application)
  • Maximum 65 years (At the time of loan maturity)
  • However, the age may go up to 70 years and above in special cases. 
Job Experience or Business Stability 
  • Salaried Employees: Minimum of 2-3 years
  • Self-Employed: Cash profit of at least 3 years
Credit ScoreGood Credit Score
(650 and above is usually acceptable)



Required Documents for Loan Against Property (LAP)

If borrowers are eligible for the loan, they are required to submit the required documents for a timely and hassle-free disbursal.  Refer the below table to know more:

 Type of Document Salaried EmployeeSelf-employed
Salary slips/ ITR 
  • salary slip for last 3 months
  • Bank statement or copy of passbook of last 6 months
  • ITR (Income Tax Return) for last 3 years as certified by CA
  • Copy of Passbook or Bank Statement for last 6 months
Income Proof 

Any one of the following:

  • Form 16
  • PF Statement
  • Appointment Letter
  • Balance Sheet of last 3 years
  • Profit and Loss Statement of last 3 years
  • Schedules and Annexure
Identity proof 

Any one of the following:

  • Aadhar Card
  • Passport
  • Voter ID
  • PAN
  • Driving License

Any one of the following:

  • Aadhar Card
  • Passport
  • Voter ID
  • PAN
  • Driving License
Job or Business stability Full-Time job with a relevant number of years

Proof of business registration:

  • GST Number
  • Incorporation Certificate
Photographs  Two passport sized photographs signed across Two passports sized photographs signed across
Residential address proof


Any one of the following:

  • Registered Rent Agreement
  • Passport
  • Utility Bill (Up to 3 months old)
  • Driving License

Any one of the following:

  • Registered Rent Agreement
  • Passport
  • Utility Bill (Up to 3 months old)
  • Driving License
Other documents  
  • Employment contract
  • Appointment letter if job is less than 1 year old
  • Cheque of processing fees in favour bank or NBFC
Cheque of processing fees in favour bank or NBFC



Why Take a Loan Against Property through mymoneymantra?

The mymoneymantra team consists of experienced and service-oriented professionals who will help you choose the best loan offer to meet your specific requirement. They will analyze your financial and guide you throughout the loan process as well as any follow-up service requirements.

Contact mymoneymantra now and help us find the best loan for you.


EMI Calculator

EMI Calculator

Loan EMI

Total Interest Payable

Total of Payments
(Principal + Interest)

Eligibility Calculator

Eligible Loan Amount:


Monthly Repayment:


Total Interest Payable:


EMI Calculator

Balance Transfer Calculator

Payout in first loan


Payout in new loan


Total gross saving


Prepayment Amount Calculator

Loan repaid


Loan balance


Pre-payment penalty


Total pre-payment to be made


How soon can I payoff my loan

Note on part prepayment
Amount - How much do you want to part prepay?
Month - When do you want to prepay? If you availed your loan in Jan’16 and want to part pay in Jan’17, then please enter 12 months.

Loan repaid in


OTP is sent to your mobile number

Enter OTP

Resend OTP