Loan Against Property (LAP)
A Loan Against Property (LAP) is a secured loan that allows you to unlock the value of your residential, commercial, or industrial property without selling it. You can pledge your property as collateral and access funds for personal or business needs at attractive interest rates.
Features of Loan Against Property
- High loan amount sanctioned against the market value of your property.
- Lower interest rates compared to unsecured loans like personal loans.
- Flexible usage – for business expansion, education, wedding, medical needs, or debt consolidation.
- Longer repayment tenure, typically up to 15–20 years.
- Continued ownership of your property while leveraging its value.
Loan Top-Up Eligibility
- Salaried individuals, self-employed professionals, and business owners.
- Minimum age: 21 years; maximum age: up to 65 years (varies by lender).
- Stable income and good repayment capacity.
- Clear property ownership and legal documentation.
- Healthy credit score (usually 700+ preferred).
Documents required to apply for Loan Top up
- Identity proof (Aadhar, PAN, Passport, Driving License).
- Address proof (Utility bills, Passport, Voter ID, Aadhar).
- Income proof (Salary slips/IT returns/Bank statements for last 6 months).
- Property documents – title deed, previous chain of ownership, approved plans.
- Passport-size photographs.
- Any additional documents requested by the lender.
Fees and Charges for Loan top up
- Processing fee (generally 0.5% – 1% of loan amount).
- Valuation and legal verification charges.
- Prepayment/foreclosure charges (varies by lender).
- Interest rate (lower than personal loan, depends on property type and profile).
- GST and other applicable taxes on fees.
FAQs on Loan Against Property
What is the maximum loan amount I can get?
It depends on the market value of your property and your repayment capacity—usually up to 60–70% of the property value.
Can I use LAP for business purposes?
Yes, LAP funds can be used for business expansion, working capital, or any personal needs.
Do I lose ownership of my property?
No, ownership stays with you. The property is mortgaged with the lender until the loan is repaid.
What types of properties are eligible?
Residential, commercial, and in some cases, industrial properties are eligible, provided documentation is clear.
Is the interest rate fixed or floating?
Both options are offered depending on the lender. Floating rates are more common.