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Funding & Capital · Secured Finance
Your property's value - working for you.

Loan Against Property
Unlock Your Asset's Value

50%–75% of Property Value 8.5%–12.5% p.a. Up to 20-Year Tenure

A Loan Against Property (LAP) lets you borrow against the value of your residential, commercial, or industrial property - without selling it. Lower rates, longer tenure, and higher loan amounts than unsecured loans.

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LAP Eligibility Estimator
Enter your property value - see how much you can borrow
Property Value ₹1.0 Cr
50% LTV
₹50L
Conservative
60% LTV
₹60L
Standard
75% LTV
₹75L
Maximum
Indicative EMI @ 60% LTV · 15 yrs · 9.5%
₹62,670 / month
Actual varies by lender, profile & rate
LTV = Loan-to-Value ratio. Actual eligibility depends on lender assessment, property type, and borrower profile.
What Is a Loan Against Property?

Borrow against your asset - keep ownership

A Loan Against Property (LAP) is a secured loan where you pledge your property as collateral to borrow funds from a bank or NBFC. The loan amount is typically 50% to 75% of the property's market value, depending on the lender's assessment.

Since LAP is backed by a physical asset, it offers significantly lower interest rates, longer repayment tenures (up to 15–20 years), and higher loan amounts than unsecured personal loans. You retain ownership and use of the property throughout - and can even continue to rent it out.

Funds can be used for any purpose - business expansion, education, medical expenses, debt consolidation, or working capital - with no restriction on end-use.

75%
Max LTV
Of the property's market value
20 yrs
Max Tenure
Spreading repayment comfortably
8.5%+
Starting Rate
Lower than personal or business loans
What Property Can Be Pledged?

Three accepted property types

Residential Property

Home, Flat, or Plot

Self-occupied or rented residential property with a clear title - the most common type pledged for LAP. Generally attracts the highest LTV ratio.

Commercial Property

Office, Shop, or Warehouse

Commercial properties can also be pledged - though LTV may be slightly lower. Ideal for business owners with owned commercial premises.

Industrial Property

Factory, Plant, or Industrial Unit

Industrial assets are accepted by most lenders - particularly useful for manufacturers and businesses with significant industrial property holdings.

Key Benefits

Why LAP is preferred over unsecured loans

High Loan Amount

Get 50%–75% of your property's current market value as a loan - enabling access to significantly larger funds than unsecured options.

Lower Interest Rates

Property-backed collateral significantly lowers lender risk - translating to rates of 8.5%–12.5% p.a., far below personal loan rates.

Flexible Repayment Tenure

Tenures up to 15–20 years reduce monthly EMI burden considerably, improving your cash flow during the loan period.

You Retain Property Ownership

You continue to own, occupy, and even rent out your property throughout the loan - it only acts as security, not a transfer of title.

No End-Use Restriction

Use the funds for business expansion, education, medical emergencies, debt consolidation, or any personal financial need - no restrictions apply.

Tax Benefits (Business Use)

Interest paid on LAP used for business purposes or asset creation may be eligible for tax deductions - your CA will advise based on your specific usage.

Improved Approval Chances

Asset-backed security significantly improves your loan approval probability compared to unsecured loan applications - especially for self-employed borrowers.

Quick Disbursal

With documents in order, LAP disbursal is faster than many other large-ticket loans - particularly when a CA has pre-verified your documentation.

Interest Rates

What affects your LAP interest rate?

Typical Rate Range - India 2025
8.5% – 12.5%
Per annum · Secured LAP
Rates vary by lender, loan amount, tenure, borrower profile, and property type. A strong CIBIL score (750+) and low LTV consistently attract the best rates. Our CA team helps you present the strongest possible application.
1

Credit Score - A CIBIL score of 750+ qualifies you for the best available rates across lenders.

2

Loan-to-Value (LTV) Ratio - Lower LTV (borrowing less relative to property value) means less risk for the lender and a better rate for you.

3

Property Type & Location - Residential properties in prime urban locations attract better rates than commercial or industrial assets in tier-2 cities.

4

Borrower Income & Profile - Stable, well-documented income (salaried or self-employed) directly influences rate and eligibility.

5

Loan Tenure - Shorter tenures may attract lower rates; longer tenures reduce EMI but may carry a marginal rate premium.

Self-Employed Borrowers

Can you get LAP without traditional income proof?

Yes - some lenders offer LAP with alternate documentation. Here's what you can provide instead.

ITRs as Income Proof

Last 2–3 years' Income Tax Returns (ITRs) are accepted by most lenders as a substitute for salary slips - especially for business owners and consultants.

Bank Statement Analysis

12–24 months of bank statements showing regular inflows allow lenders to assess repayment capacity without formal payslips.

Rental Income Proof

If your property is rented, rental receipts and agreements serve as income documentation to support your LAP application.

Co-Applicant with Income

Adding a co-applicant with stable, documented income improves overall eligibility and may enable a higher loan amount.

Note - LAP without standard income proof may come with a slightly higher interest rate or lower LTV ratio. Working with a CA to present your income accurately - through properly filed ITRs and clean banking - gives you the best chance at favourable terms.
Top Lenders

HDFC vs SBI - and how to choose

Both are strong LAP lenders, but they suit different borrower profiles. Always compare before applying.

ParameterHDFC BankSBI
Interest Rate9.00% – 11.50%8.50% – 11.00%
Max Tenure15 years15 years
Max LTVUp to 65%Up to 75%
ProcessingQuick, digital-first, doorstep serviceBranch-based, strong for salaried borrowers
Best ForSelf-employed professionals, quick approvalsSalaried individuals, lower rate seekers
Property TypesResidential & commercialResidential, commercial & industrial
PrepaymentPart-prepayment allowed with flexibilityNo prepayment penalty on floating rate loans

Rates indicative. Our CA team compares your specific profile across multiple lenders - including NBFCs - to identify the best fit before you apply.

Eligibility

Who can apply for a Loan Against Property?

Salaried Individuals

Stable income, clear property title, and a CIBIL score of 700+ puts salaried borrowers in the best position for LAP.

Self-Employed Professionals

Doctors, architects, CAs, and consultants with regular income documented through ITRs and bank statements.

Business Owners

Proprietors and company directors who own property and need capital for expansion, operations, or debt management.