Loan Against Residential Property

'Loan Against Property', is also known as mortgage loan. This is one of the types of a secured loan as collateral is involved. This means if you need this loan, you will have to hold your property as mortgage with the bank. Any property whether it is commercial or residential, can be used in order to get a loan against property. The main highlight of the loan against property is that you can get 40-65%* of the property's value as the loan amount. Hence if you happen to have more than one property under your name, you can keep the costlier property as collateral. This will help you get a higher loan amount. The lender will evaluate your property and finalize the market value for it. On the basis of that value, you will get the loan amount.

LAP (Loan against Property) can be processed against a Residential property that is already on borrower’s name. LAP is taken for both the personal and business usage. In this case, the mortgaged security is already owned by the borrower.

LAP can be issued in any of the following scenario –

Bank ROI Processing Fees Loan Amount Tenure Institution Type Best Fit For  
Anand Rathi Financial Services Limited Anand Rathi Financial Services Limited 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
AAVAS Financiers Ltd AAVAS Financiers Ltd 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Aditya Birla Capital Aditya Birla Capital 10% 1% 10CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Avanse Financial Services Avanse Financial Services 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Axis Bank Axis Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Axis Finance Axis Finance 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Bajaj Finserv Bajaj Finserv 10% 1% 10CR 15 Years NBFC Salaried,Self Employed,Professional - OD FACILITY
Bank of Baroda Bank of Baroda 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
Bank Of India Bank Of India 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Bank Of Maharashtra Bank Of Maharashtra 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Easy Eligibility Checks
Canara Bank Canara Bank 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
Citibank Citibank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Low Interest Rate
DCB Bank DCB Bank 11% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Dewan Housing Finance Corporation Dewan Housing Finance Corporation 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Deutsche Bank Deutsche Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Edelweiss Edelweiss 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Federal Bank Federal Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Fullerton India Fullerton India 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Below 650 Cibil Cases
Gic Housing Finance Gic Housing Finance 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
HDB Finance HDB Finance 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
HDFC Bank HDFC Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Self-Employed Professional
Hero FinCorp Hero FinCorp 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
ICICI Bank ICICI Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Quick Disbursal
ICICI Home Finance ICICI Home Finance 10% 1% 10CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
IDFC First Bank IDFC First Bank 11% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Loan on Banking sarogate
IIFL IIFL 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Indiabulls Indiabulls 10% 1% 15CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Indusind Bank Indusind Bank 10% 1% 7CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Jana Small Finance Bank Jana Small Finance Bank 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
JM Financial JM Financial 10% 1% 2CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
KIFS KIFS 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Kotak Mahindra Bank Kotak Mahindra Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Quick Turnaround Time
LIC Housing Finance LIC Housing Finance 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Special Offers
Magma Finance Magma Finance 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Salaried,Self Employed,Professional
Manappuram Finance Limited Manappuram Finance Limited 10% 1% 3CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Muthoot Finance Muthoot Finance 10% 1% 3CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
PNB Housing Finance PNB Housing Finance 10% 1% 15CR 15 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
RBL Bank RBL Bank 10% 1% 7CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
SBI SBI 10% 1% 15CR 15 Years GOVT PSU Salaried,Self Employed,Professional - Salaried,Self Employed,Professional
Shriram Finance Shriram Finance 10% 1% 5CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Standard Chartered Bank Standard Chartered Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Quick Disbursal
Suryoday Small Finance Bank Suryoday Small Finance Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Tata Capital Tata Capital 10% 1% 10CR 15 Years NBFC Salaried,Self Employed,Professional - Flexible Interest Rates
Tata Capital Housing Finance Limited Tata Capital Housing Finance Limited 10% 1% 7CR 15 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Union Bank Of India Union Bank Of India 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Yes Bank Yes Bank 10% 1% 15CR 15 Years BANK Salaried,Self Employed,Professional - Affordable Interest Rates
  • Customers need a loan for various reasons. You can get a loan against property for any of the below mentioned reasons:
  • 1. For funding and expanding your business potential.
  • 2. To purchase new property/land by mortgaging existing property
  • 3. For marriage
  • 4. To fund emergency medical treatments
  • 5. To fund higher studies
  • 6. To fund a vacation
  • 7. For home renovation or expansion

A loan against property has often been confused with personal loans. The reason for this is because that they happen to have features which are distinctly similar to each other. But this is not true. Thus, in order to clear all the confusion between these two loan products, we have created a table below. This table will explain the main differences and help you understand how different they indeed are.

  • Personal Loan
  • Personal loan is a type of unsecured loan.
  • A borrower can take a personal loan for personal use without any security or guarantor
  • Rate of interest for personal loans is higher.
  • A borrower has to pay higher EMIs.
  • In order to get a personal loan, the borrower's income defines the value of sanctioned loan amount.
  • The repayment tenure for personal loan rages between 12-72 months (1-6 years).
  • Loan Against Property
  • Loan against property is a type of secured loan.
  • Rate of interest for loan against property is lower.
  • A borrower pays cheaper EMIs.
  • The approved loan amount for loan against property depends on the borrower's income details as well as value of the property which is being kept as mortgage.
  • The repayment tenure for loan against property goes maximum to 180 months (15 years).

The list of documents for availing loan against property changes whether you're a salaried applicant or a self-employed professional/ businessman. The Loan Against Property process can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria. The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
No income proof needed for approval.*

Documents Required for Salaried Applicant:
You will need to furnish a fully filled and signed application form for a loan against property.
The banks will mention the number of Passport-sized photographs.
Furnish Identity proof in the form of - Aadhar card, Pan card ,Passport, Driving License, Voter ID card, employee identity card (in case of government employees).
Please keep a cheque ready which will cover administrative costs/processing fees that will be incurred by the bank in processing this loan application.
Keep these Address Proofs in handy - Rent Agreements, Bank statements, Ration card, Passport, Driving License, Water/Telephone/credit card bill/ Electricity or Property tax.
You will also need to arrange for the Age Proofs via - Birth certificate, Secondary school leaving certificate (class 10), Passport, pension payment order or receipt of LIC policy.
Apart from all this, please arrange for Salary slips of the past 3 months from loan application date.
Please attaché the Form-16 which will be issued to you by your current employer.
Get copies of your Bank statements since the past 6 months right from application date towards the loan.
Please get a copy of all existing loans and their details
You will have to furnish Property papers with CC and OC.

Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories

  • Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories
  • 1. Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.
  • 2. Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.
  • Also, if you are applying as a company, you can avail loan by applying under following entities:
  • 1. Partnerships/Propretorship
  • 2. Limited Liability Partnerships
  • 3. Private Limited Companies
  • Other important requirements to avail Business Loan:
  • 1. The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.
  • 2. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
  • 3. Your business must be making profit for last 2 years.
  • 4. The age of the applicant should be minimum 25 year and maximum 65 years5. You should have paid your business's Income Tax Returns for last 2 years.
  • 5. You should have paid your business's Income Tax Returns for last 2 years.
  • 6. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.

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