Loans
Loan against property,without selling it.
Borrow against a home, shop or office you own — and keep using it.
In one minute
- 1
Unlock your property’s value
Borrow against a home, shop or office you own — and keep using it.
- 2
Lower rate than unsecured loans
Typically about 9% to 12% a year, far below personal or business loans.
- 3
Long repayment
Repay over up to 15–20 years, keeping the EMI manageable.
Chapter 01
What is a loan against property?
A loan against property (LAP) lets you borrow money by pledging a property you already own — a flat, house, shop or office. You continue to live in or use the property. The lender holds its documents until the loan is repaid.
Because the loan is secured, you can borrow larger amounts at lower rates than a personal or business loan, and use the money for almost any purpose: business expansion, a child’s education, a wedding, medical costs or paying off expensive debts.
Chapter 02
How much can you borrow?
01
Residential (home, flat)
- Typical loan as share of value
- 60% – 70%
02
Commercial (shop, office)
- Typical loan as share of value
- 50% – 60%
03
Industrial / special-use
- Typical loan as share of value
- 40% – 50%
The final amount also depends on your income and existing EMIs. A property with clear title and approved plans gets the best terms.
Chapter 03
An example
- Value of his flat
- ₹1.2 crore
- Loan sanctioned (about 42%)
- ₹50 lakh
- Interest rate (illustrative)
- 10% a year
- Term
- 15 years
- Monthly EMI
- About ₹53,700
A business loan of the same size would typically cost 15–18% a year and need repaying in 3–5 years.
Chapter 04
Documents you’ll need
- PAN and Aadhaar of all owners
- Income proof: salary slips / ITRs and business accounts
- 12 months’ bank statements
- Property title chain, sale deed and approved building plan
- Latest property tax receipt and society NOC
- Details of any existing loans
Chapter 05
Things to be careful about
- Missing EMIs puts the property at risk — borrow only what you can repay comfortably
- Use the money for productive purposes, not routine spending
- Compare processing fees and valuation charges along with the rate
- Floating-rate loans to individuals have no prepayment penalty
Questions
Good toknow.
Can I get a loan against a property that is jointly owned?
Yes — all owners must be co-applicants and sign the loan documents.
Can I take LAP on a property that already has a home loan?
Some lenders offer a top-up or a combined loan on the same property once a good repayment record is built.
Is the interest tax-deductible?
If the money is used for business, the interest can be claimed as a business expense. If used to buy or build another home, home-loan tax rules may apply. Ask your tax adviser.
Keep reading
You mayalso need.
Loans are provided by partner banks and NBFCs and are subject to their credit assessment, terms and conditions. Interest rates, fees and eligibility vary by lender and borrower profile. We facilitate the process and do not lend directly. Rates shown are indicative ranges; the actual rate depends on the lender and your profile. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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