Loan Against Property (LAP)

Loan Against Property (LAP) or Mortgage Loan is a type of secured loan offered by Banks and Housing Finance Companies (HFCs) against Commercial, Residential and Industrial property owned by the borrower. PaisaTap offers easy and hassle-free Loan against Property for a loan amount starting from Rs. 15 Lakhs to 10 Crore. The amount, which is availed by keeping the property as collateral till the loan is fully repaid, can be used by the borrower for various purposes like expanding a business, personal needs and more. The maximum loan amount provided under LAP can go up to 70% of the property value.

Bank Name

Interest Rate

Processing Fee

Loan Amount/Tenure

Axis Bank

7.25% p.a. onwards
(Fixed /Floating Rates)

ICICI Bank

7.99% p.a. onwards
(Fixed /Floating Rates)

Kotak Mahindra Bank

7.25% p.a. onwards
(Fixed /Floating Rates)

IDFC First Bank

8.00% p.a. onwards
(Fixed /Floating Rates)

What is a Loan Against Property (LAP)?

A Loan Against Property (LAP) is a loan disbursed against the security of property, residential or commercial, to meet their financial needs. The property placed as security must be free of any encumbrance and the funds so borrowed, must not be used to carry out anything illegal.

The total value of the loan disbursed is usually 40%-65% of the market value of the property provided as security. These kinds of loans are cost-effective, easy to avail and come with low mortgage interest rates.

Loan Against Property Balance Transfer

If you are having a Loan Against any of your property, and you feel your rate of interest is higher compared to the prevailing interest rates in the market, you can explore the option to switch/transfer your existing Loan to another Banks/Lender to reduce the Interest Rate and you can also look for an additional Top-Up. The top-up amount is subject to your income eligibility and current market valuation of the property. Most often existing Loan against property borrowers transfer their existing loan to another Banks or NBFCs to reduce the interest rate or to take additional loan amount or to increase the tenure of the loan. Below are the reasons for Balance transfer of a Loan Against Property or Home Equity Loan:

  • Reducing Interest Rate on Loan
  • Increasing the loan amount or avail Top-up Loan
  • Increasing or reducing tenure of the loan

Documents Required For Loan Against Property

Documents Type Salaried Individual Borrowers Self-employed Individual borrowers

KYC Documents 

  • Identity, Signature & Age proof –  PAN Card/Passport/Aadhaar Card/ Voters ID
  • Residence proof- Passport/Aadhaar Card/Bank statement/ Utility Bills/ Ration Card
  • 2 photographs
  • Identity, Signature & Age proof –  PAN Card/Passport/Aadhaar Card/ Voters ID
  • Residence proof- Passport/Aadhaar Card/Bank statement/ Utility Bills/ Ration Card
  • 2 photographs
  • Business Entity- PAN Card , GST Certificate 
Loan Against Property Application FormsCompletely filled and duly signed Loan Against Property application forms of the Bank/NBFCCompletely filled, stamped and duly signed Loan Against Property application forms of the Bank/NBFC
Income Documents 
  • Salary Slips- Latest 6 months
  • Form No.16 – Latest 3 years
  • ITR- Latest 3 years
  • Appointment Letter- If changed job in last 12 months
  • Promotion Letter- If received any promotion recently
  • Salary Account Bank statement- for latest 12 months
  • Employers ID card 
  • Financial Statements- Latest 3 years Income tax returns, Computation of Income, Balance Sheet with all schedules, Audited Reports (if applicable)
  • Shop & Business establishment certificate
  • Business Profile
  • MOA & AOA- for a Private Limited Company
  • Partnership deed- for a partnership firm
  • LLP Agreement – for LLP firms
  • Financial statements of Partners/ Directors 
  • GST returns
Loan Details Sanction Letter, Statement of Loan Account and Repayment Track record for the last 2 year of all the running Loans and cards
Other DocumentsLenders may ask for some more documents based on your financial and professional profile

Loan Against Property Application With PaisaTap

Does PaisaTap charges me for its services?
NO. PaisaTap’s  services are totally for free .

PaisaTap make sure its clients get the below-mentioned services for free:

  • Neutral services on Loan against Property
  • Lowest Rate of Interest
  • Lowest processing fees
  • Best services in the industry
  • Best tenure for the finance period
  • Lowest EMI on LAP
  • Reducing Interest Rate on Loan
  • Avail Top-up Loan
  • Increasing or reducing tenure of the loan

FAQ's on Loan Against Property

Q. Is it possible to apply for a Loan Against Property if it is a joint property?

Ans. Yes, it is possible provided that the co-applicant of the loan is the joint owner of the property. In fact, a higher loan amount can be availed for joint properties.

Q. How can I apply for Loan Against Property(LAP) or Mortgage Loan?

Ans. You can apply for a loan in various ways. You can directly visit the bank branch and meet the sales team, contact a Loan Agent or apply online at any bank or NBFC’s website. You can also check and compare the best mortgage loan interest rates in all banks online at PaisaTap and apply for a Loan.

Q. Is there a specific purpose that I should mention to avail such a loan?

Ans. Customers can opt for the Loan Against Property for business purposes, personal needs or debt amalgamation.

Q. What are the Property Documents Required by Banks?

You will need to submit copies of the following Property Documents:

  • Previously title chain – Sales Deed, Conveyance deed, Share Certificate,  Allotment letter, 
  • Copy of approved plan for construction/ extension
  • Latest property tax receipt
  • Master File of Property/Society

Q. Is the Interest Rate for the Loan Against Property common between Lenders?

Ans. No, the Interest Rates offered by lenders are differ.

Q. Is it safe to take a Loan Against Property?

Ans. Availing a Loan Against Property is a cheaper option than a personal loan. Unlike a home loan, you can avail loan against property for multiple personal or business use. It is safe to avail a mortgage loan if you are sure that you can repay in time.

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