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PropertyPledge | Loan Against Property Comparison & EMI Calculator

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Loan Against Property — High Value, Low Interest

Convert your residential or commercial property into liquidity. Whether you need funds for business expansion, education, marriage, or medical emergencies — a Loan Against Property (LAP) offers higher loan amounts at lower interest rates compared to unsecured loans.

Bank / HFC	Property Type	Interest Rate (p.a.)	Max Tenure	Loan Amount (up to)	LTV Ratio
SBI Loan Against Property	Residential / Commercial	9.15%*	15 Years	₹5 Crore	Up to 70%
HDFC Loan Against Property	Residential / Commercial	9.40%	15 Years	₹10 Crore	Up to 70%
ICICI Bank LAP	Residential / Commercial	9.35%	15 Years	₹7.5 Crore	Up to 70%
Axis Bank LAP	Residential / Commercial	9.55%	15 Years	₹6 Crore	Up to 65%

*Interest rates are floating and vary based on loan amount, property, and credit profile. LTV as per RBI guidelines.

What is a Loan Against Property (LAP)?

A Loan Against Property is a secured loan where you pledge your residential or commercial property (self-occupied, rented, or vacant) as collateral to avail funds. LAP offers higher loan amounts (up to ₹10 crore), lower interest rates compared to personal loans, and longer repayment tenure up to 15 years. Funds can be used for business, education, wedding, medical needs, or debt consolidation.

How Does LAP Work?

Banks assess your property's market value and sanction up to 60-70% of its value (Loan-to-Value ratio). Your repayment capacity, income, and credit score also influence the loan amount and interest rate.

Property Valuation & Legal Verification
Loan Sanction based on LTV & eligibility
Mortgage registration & disbursement
Repayment via EMIs over 5-15 years
Property released after full repayment

Key Features of LAP

High Loan Amount: Up to ₹10 crore or more
Attractive Interest Rates: 9% – 12% p.a.
Long Tenure: Up to 15 years (180 months)
Flexible End-Use: Business, education, medical, travel
Overdraft Facility: Available with some lenders
Low Processing Fees: Typically 0.5% to 1%

Eligibility Criteria

Age: 21 – 65 years (at loan maturity)
Minimum income: ₹25,000+ per month (salaried) or ITR for self-employed
CIBIL Score: 700+ preferred
Property should be clear title, no legal disputes
Business vintage: 3+ years for self-employed

Required Documents

📄 Common Documents

KYC (Aadhar, PAN, Voter ID, Passport)
Property documents (Title Deed, Sale Agreement, Tax receipts)
Income Proof: Salary slips/ITR for last 3 years
Bank Statements (last 6-12 months)
Encumbrance Certificate, Property Valuation report

🏢 For Self-Employed

Business proof (GST, MSME, Shop Act)
Audited Balance Sheet & P&L for 3 years
Computation of income & ITR acknowledgments

Loan Against Property — FAQs

1. What is the maximum loan amount I can get against my property?

Typically up to 60-70% of the property's market value (LTV ratio). For loans above ₹75 lakhs, LTV may be capped at 60% as per RBI guidelines.

2. Can I take a loan against an inherited property?

Yes, provided the property has clear title, all legal heirs consent, and mutation is complete in your name.

3. Is Loan Against Property tax deductible?

If the loan is used for business purposes, the interest paid can be claimed as a business expense. For personal use, no tax benefit under income tax.

4. What happens if I default on LAP?

The lender has the right to take possession of the property and auction it to recover the outstanding loan amount after due legal process.

5. Can I prepay Loan Against Property?

Yes, most lenders allow partial prepayment or foreclosure. Charges may be nil or minimal for floating rate loans. Fixed-rate loans may have prepayment penalties.

LOAN AGAINST PROPERTY LOAN