🏠 Loan Against Property (LAP)

 Unlock the Value of Your Property

Need a large amount of money for business, education, or any personal requirement? A Loan Against Property (LAP) allows you to use your owned property as collateral to get a high-value loan — without selling it.

At GrowMyRupee, we help you understand how LAP works in India, who it’s for, and how to choose the best offer.

 

🔍 What is a Loan Against Property?

A Loan Against Property (LAP) is a secured loan where you pledge a residential, commercial, or industrial property that you own to get funds from a bank or NBFC. The property remains yours — it’s just used as collateral.

You can use the money for:

  • Business expansion

  • Education or wedding expenses

  • Medical emergencies

  • Debt consolidation

  • Personal financial needs

 

💰 Key Features

✅ High loan amount – up to ₹5 crores or more
✅ Low interest rates – starting from 8.5% p.a.
✅ Long repayment tenure – up to 15–20 years
✅ Loan available against self-occupied or rented properties
✅ Both salaried and self-employed individuals eligible

 

🏦 Top LAP Providers in India

  • HDFC Ltd

  • ICICI Bank

  • State Bank of India (SBI)

  • Axis Bank

  • Bajaj Finserv

  • Kotak Mahindra Bank

  • PNB Housing Finance

  • LIC Housing Finance

 

📄 Eligibility Criteria

For Salaried Individuals:

  • Indian resident

  • Age: 21–60 years

  • Minimum income as per lender’s requirement

  • Stable employment

For Self-Employed:

  • Indian resident

  • Age: 21–65 years

  • Proof of stable business income

 

🧾 Documents Required

Identity & Address Proof:

  • Aadhaar Card / PAN / Passport / Voter ID / Utility Bills

Income Proof:

  • Salary slips (for salaried)

  • Bank statements

  • ITRs for last 2–3 years (for self-employed)

Property Documents:

  • Title deed

  • Approved building plan

  • Past ownership documents

  • No encumbrance certificate

 

📊 Loan Amount & Valuation

  • You can borrow 50% to 75% of your property’s market value

  • The value is determined by the lender’s internal property assessment

 

🔁 Repayment Options

  • EMI-based repayment over 10–20 years

  • Some lenders offer overdraft facility against property

 

💡 Benefits of Loan Against Property

✔️ Lower interest than personal loan
✔️ High loan value with long tenure
✔️ Property remains in your name
✔️ Prepayment and foreclosure available (some lenders may charge a fee)

 

⚠️ Things to Keep in Mind

⚠️ Loan default can lead to loss of property
⚠️ Property should be free from legal disputes
⚠️ Processing time is longer than personal loans (due to valuation/legal checks)
⚠️ Ensure EMI fits your long-term budget

 

🧠 FAQs

Q: Can I get a LAP on a rented property?
Yes, as long as you own it and it’s not under dispute.

Q: Is co-applicant allowed?
Yes, especially for higher loan eligibility (like a spouse or parent).

Q: Is LAP available for under-construction property?
Usually not. Most lenders prefer completed, self-owned properties.

Q: What if I want to sell the property during the loan?
You need to clear the loan first or get buyer consent with bank approval.

 

📌 Final Thoughts

A Loan Against Property is a smart and economical way to access large funds without liquidating your asset. With lower EMIs and flexible tenure, it’s ideal for long-term financial needs.

At GrowMyRupee, we help you compare LAP options, understand the fine print, and choose the best deal for your needs.

📩 Need help checking eligibility or comparing offers?
Contact Us and we’ll guide you through the LAP process step-by-step.

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