Loan Against Property (LAP) is a secured financial facility offered by banks and financial institutions where a borrower pledges a residential, commercial, or industrial property as collateral to obtain funds. This type of loan allows individuals and businesses to unlock the value of their owned property while continuing to retain ownership and usage rights.
Because the loan is secured against property, Loan Against Property generally carries lower interest rates compared to unsecured loans. It is commonly used for business expansion, education expenses, medical emergencies, debt consolidation, or other long-term financial needs where a higher loan amount and longer tenure are required.
As a consultancy firm, we assist clients in understanding loan against property options, eligibility requirements, documentation procedures, property-related checks, and lender processes. We do not provide loans directly. All loans are sanctioned and disbursed solely by banks or financial institutions as per their internal credit policies and regulatory guidelines.
TYPES OF PROPERTIES ACCEPTED
- Self-Occupied Residential Property
Residential property that is currently occupied by the owner. Lenders usually prefer self-occupied properties due to their clear usage and ownership structure.
- Rented Residential Property
Residential property that is rented out and generates rental income. Lenders may consider rental income while assessing repayment capacity, subject to stability and documentation.
- Commercial Property
Commercial spaces such as offices, shops, or showrooms used for business activities. These properties are commonly accepted, especially when the loan is for business purposes.
- Industrial Property
Industrial properties may be accepted in certain cases depending on location, zoning regulations, and lender policies. Approval is generally case-specific.
KEY FEATURES OF LOAN AGAINST PROPERTY
- Secured loan with property offered as collateral
- Loan amount generally up to 60 to 75 percent of the property’s market value
- Lower interest rates compared to unsecured personal or business loans
- Long repayment tenure, typically up to 15 to 20 years
- Flexible end-use of funds, subject to lender conditions
- Borrower retains ownership and usage rights of the property during the loan tenure
- Option for prepayment or foreclosure, subject to lender terms
ELIGIBILITY CRITERIA
- Clear and marketable title of the property being pledged
- Good credit score and satisfactory repayment history
- Stable income source or consistent business cash flow
- Age of the borrower within lender-specified limits
- Compliance with property-related legal and regulatory requirements
Meeting eligibility criteria improves approval chances; however, final eligibility is determined by the lending institution after detailed evaluation.
HOW OUR CONSULTANCY HELPS
- Explain the suitability of Loan Against Property based on financial needs
- Guide clients on eligibility requirements and acceptable property types
- Assist in understanding documentation requirements for property and income
- Clarify valuation, legal verification, and bank assessment processes
- Provide guidance on loan structure, tenure selection, and general terms
We act purely as an advisory partner. Loan approval and disbursement decisions are taken entirely by the lending institution.
IMPORTANT CONSIDERATIONS
- Ability to service long-term EMIs comfortably
- Total interest cost over an extended tenure
- Processing fees, legal charges, and valuation costs
- Risk of property loss in case of repayment default
- Impact of loan obligation on future financial planning
Careful assessment of these factors helps borrowers make informed decisions and manage risk effectively.
CALL TO ACTION
Speak to Our Loan Against Property Consultant
DISCLAIMER
We act solely as a consultancy and advisory service provider. We do not sanction, approve, or disburse loans. Final loan approval, interest rates, tenure, and terms are determined exclusively by the respective bank or financial institution in accordance with applicable regulations and internal policies.