Loan Against Property (LAP)
Unlock the full value of your residential or commercial property.
Leverage your owned property to raise funds for business expansion, education, weddings or consolidation — while you continue to use the property.
Interest rates and terms are indicative and subject to lender approval.
Loan Against Property (LAP)
Key features
- High loan-to-value
- Tenure up to 30 years
- Loans up to ₹25 Cr
- Residential & commercial property accepted
- Use funds for any legitimate purpose
Eligibility
- Owner of a clear-title property
- Demonstrable repayment ability
- Aged 21–70
Documents
- KYC documents
- Income proof / ITR
- Property title & valuation documents
- 12 months' bank statement
- Chain of ownership documents
In depth
Understanding Loan Against Property (LAP)
LAP is a secured loan where a borrower pledges their existing commercial or residential property as collateral to secure funds for business or personal needs.
- The Mechanism
- Loan Amount = A specific percentage (LTV) of the property's current market value.
- Key Components
- Pledged property, LTV ratio, End-use of funds, and Interest rate.
- What the Results Mean
- It unlocks the dormant value of your real estate, providing large-ticket funding at lower interest rates compared to unsecured loans.
- Smart management
- Ensure the loan amount aligns with an income-generating use so the EMIs do not drain your regular cash flow.
Regulatory source
Governed by RBI Master Directions on loans and advances, dictating capital adequacy and valuation norms.