What is Loan Against Property?-Banner_WC



​​​A Loan Against Property (LAP) is a type of loan that is sanctioned against an asset that serves as collateral. To avail of a LAP, individuals need to pledge a property they own as collateral. The property to be pledged can be a residential or commercial property you own.

Besides understanding what a Loan Against Property is, it is important to note that one can use the sanctioned funds for housing or business-related expenses or for debt consolidation.

With this credit option, avail of up to 70–75% of the property’s (collateral asset) prevailing market value as the loan amount. Applicants have to submit the property ownership documents, along with other relevant ones, to secure loan approval. After verification and loan approval, the sanctioned loan amount is transferred to the applicant’s account. The asset in question and property documents remain with the lender as collateral until the entire borrowed sum is repaid.

Loan for Lease Rental

In this type of financing, a property that is a source of rental income can be pledged to raise funds. In Lease Rental Discounting, the funds are offered against the rental income that is likely to be received from the property. Accordingly, the rent paid by the tenant goes straight to the lender.

Loan for Commercial Property

This particular  type of Loan Against Property allows borrowers to pledge an asset as collateral to purchase a commercial property. It proves useful for traders or business owners and enables them to switch to better and more spacious office space, a factory, or even a warehouse.

Loan Against Commercial or Residential Property

This loan option allows raising funds against an owned commercial or residential property to meet funding requirements. The sanctioned loan value depends entirely on the property’s market value.

*Terms and conditions apply

Relatively long repayment tenor: The repayment tenor of LAP can last up to 17 years.

Lower interest rates: LAP offers relatively low rates of interest (starting as low as 10.10%* p.a. for salaried and professional applicants) when compared to unsecured loans such as personal loans, where the rate of interest is usually high.

Lower EMIs: Longer tenors translate to lower monthly spendings in the form of EMIs. This greatly helps bring down the burden of loan.

Easy to avail: LAPs are secured loans where lenders keep your property as security. Hence, lenders have lesser risk to hand over the loan. This ease is transferred to the applicant who then gets to avail a loan without much procedure.

Steps to Apply for Loan Against Property

Steps to Apply for Loan Against Property

​​​To apply for Loan Against Property​​

  1. ​​​Click on the  Loan Against Property application form and add in the details required such as name, date of birth, address, and contact details​​
  2. ​​​Share all your income details to get the best deal as per your financial standing​​
  3. ​​​Click on ‘Submit’​​

​​​Our representative will get in touch with you to guide your through the next steps​​​​

​​​*Terms and conditions apply​​

Frequently Ask Questions_What_is_LAP_WC

Frequently Asked Questions

The full form of LAP is Loan Against Property. LAP is a type of loan that is sanctioned against an asset that serves as collateral. To avail of a LAP, individuals need to pledge a residential or commercial property that they own.

A Loan Against Property helps you fulfil your big-ticket expenses. It can be used for several business applications, such as funding for a start-up, expansion expenses, etc.

​​​A Loan Against Property offers you a flexible tenor. Typically, the tenor for a Loan Against Property is of 17 ​​years.


What is Loan Against Property repaymenttenor _PAC_WC

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