Loan Against Property FAQs

  1. What are the end uses of Loan against Property taken from a Bank/ NBFC?
      A Loan against Property or LAP taken from a Bank or Non-Banking Financial Corporation (NBFC) can be used for one or more of the below-mentioned options:
    • Business Expansion
    • Starting a new business
    • Purchase of a new property
    • Paying off another loan - Takeover of an existing LAP/Balance transfer from one financial institute to the other (why balance transfer a LAP)
    • Debt consolidation (what is debt consolidation)
    • Other personal or business needs
  2. How will a Bank/ NBFC decide my Loan against Property eligibility? How will a financial institute decide my loan eligibility for a LAP?
    LAP eligibility Income eligibility for a Loan against Property

    A Bank or Non-Banking Financial Corporation (NBFC) will assess your financial capacity to repay the loan you are proposing to take against a property. Your repayment capacity for the loan is based on your monthly disposable income or surplus income. In addition to your Business and individual disposable income, they also look at other factors like your:

    • Spouse’s income
    • Total family assets
    • Stability of income
    • Other loans and obligations

    The main concern for the funding bank/ NBFC is to make sure that you can repay the loan comfortably on time, and that you have provided a solid reasoning for the end use of the LAP loan. Higher the monthly disposable income better would be the loan eligibility.
    Generally, a mortgage lender assumes and calculates your loan eligibility by taking 60-70% of your monthly disposable income and capping your Mortgage finance EMI to that extent.

      The Loan against Property amount you will be eligible for will also depend on the below mentioned factors:
    • Tenure of the LAP
    • Rate of interest on the loan

    These factors of the loan decide your monthly outflow on the loan, which in turn depends on your disposable income.
    Compare Loan against Property Offers from 50+ Financers at

  3. How does the Loan against Property process work?
    Mortgage loan process
      A Loan against Property process includes:
    • Application Process :
      Application forms should be submitted along with a complete set of financial statements, bank statements KYC documents as required, profile of the borrower and legal and title documents.
    • Search and Legal process :
      Search and title clearance of the property by the empanelled advocate of the lender will be conducted.
    • Valuation of the Property :
      Valuation is performed by an authorized valuer of the lender.
    • Credit Report Check :
      The credit score (CIBIL score) of the applicant and co-applicant is taken into consideration.
    • Credit Appraisal Process :
      It is typically done based on the application and details given by the borrower to the bank/NBFC along with the assessment of the valuation and legal report of the authorities.
    • Sanction Approval process :
      The sanctioning or deaccessioning of the application is based on the report generated on assessing the above points (numbers 1-5).
    • Loan Documentation :
      A loan agreement is signed between the lender and the borrower post sanction of the loan.
    • Disbursal Process :
      Post signing of the loan agreement, all original documents related to the Property offered as collateral are submitted to the financer for the disbursal of the loan.
  4. What is a pre-EMI interest in LAP?

    A pre-EMI interest is the interest on the loan amount disbursed by a Bank/ NBFC. It is payable every month from each disbursement until commencement of the EMI payments.

  5. What are the processing fees and other charges for a Loan against Property?
      Lowest processing fees for Loan against Property The processing fees for a Loan against Property may vary based on the following factors:
    • Type of collateral offered to the Financer
    • Status of occupancy
    • Loan amount
    The processing fee is between 0.50% and 2% of the sanctioned loan amount.
  6. What is the maximum loan amount I can get against my property?

    The highest loan amount you can get in a Loan against Property is up to 70% of the current market valuation of the property.

  7. Who can avail a Loan against Property?
      Salaried Individuals:
    • Any individual who is in permanent service in any government undertaking or any reputed private sector Company in India
    • Professionals i.e. allopathic doctors, architects, chartered accountants, cost accountants, practicing company secretary, management consultants and lawyers
      Self Employed Individuals:
    • Traders, distributors, manufacturers, service providers etc.
    • Non-Individual Entities like Proprietorship Firms, Partnership Firms, Private Limited Companies, Public Limited companies
  8. The security for a Loan against Property will be the first charge of the property to be financed. Typically, by way of deposit of the title documents and other collateral security as required along with the No Objection Certificate (NOC) from the authorized individual.

  9. What security will I have to provide for a Loan against Property?

    The security for a Loan against Property will be the first charge of the property to be financed. Typically, by way of deposit of the title documents and other collateral security as required along with the No Objection Certificate (NOC) from the authorized individual.

    The property offered as security should not be mortgaged to any other financial institute or individual. It must be clear, marketable and free from encumbrance.

  10. Can I take a LAP against the property owned by my father?

    Yes, you can take a LAP against the property owned by your father. All the co-owners of the property have to be included into the loan structure as applicant/ co-applicant.

  11. Can I take a LAP against the property owned by my spouse?

    Yes, you can take a LAP against the property owned by your spouse. All the co-owners of the property have to be included into the loan structure as applicant/ co-applicant.

  12. What is the Minimum and Maximum Loan against Property that I Can Take from Any Bank/ NBFC?

    The minimum loan amount you can take from a Bank/ NBFC varies from 15 Lacs to 30 Lacs depending on the institute. The maximum loan amount you can take may go up to 50 Crore and more. It depends upon the value of the property given as security and your repayment capacity.

    Check your loan eligibility clicking below
    SBI Loan against Property calculator
    HDFC Bank Loan against Property calculator
    ICICI Bank Loan against Property calculator
    Kotak Mahindra Loan against Property calculator
    Standard Charterd Bank Loan against Property calculator
    Capital First Loan against Property calculator

  13. Why compare and apply online for Loan against Property at

    How do I get the best deal for a Loan against Property?
    Best deal in LAP
    Best offers in Loan against Property
    While taking a Loan against Property/ LAP/ Mortgage Loan/ Property Power loan, you must compare and check all the available offers from the market at as it brings all the leading banks & NBFCs to your desktop or mobile phone. You can shop around here in the same way that you purchase merchandises on ecommerce sites.

    • Compare Brands - banking and finance companies
    • Check price - Rate of interest on LAP
    • Check one-time cost- Processing fees
    • Check Discounts- gift vouchers and cash back offers
    • And much more

    Once you shortlist the product (Loan against Property offer) apply online for a LAP, we will be happy to meet you at your doorstep to assist you for completing the borrowing process.
    Shopping around for a mortgage loan will help you to get the best financing deal in the market place.
    Shopping, comparing, enquiring, seeking clarifications, negotiating may help you save thousands or may be lakhs of rupees in your loan. At the end of the day, a rupee saved is a rupee earned.
    LAP Offers from 20+ Banks & NBFCs

  14. What Should I check before finalizing a Loan against Property/ LAP Loan?
      In India LAP or Mortgage finance is available from mainly two types of lenders:
    • Commercial Banks
    • Non-Banking Financial Corporations (NBFCs)

    Different Mortgage or LAP lenders may quote a different rate of interest and provide terms and conditions based on your income, repayment capacity CIBIL score and other factors.
    Considering the above factors, you must compare loan rates offered by different lenders to make sure you are getting the best rate of interest on your loan. We at enable you to compare LAP deals from all the leading banks of India on a single platform.

      While finalizing a bank or Loan against Property lender consider the following factors:
    • Find out all the cost involved in the loan (processing fees, administrative charges etc.)
    • Pre-payment charges on loan
    • Foreclosure charges on loan
    • Loan amount eligibility
    • Tenure of loan
    • Options of fixed or floating rate of interest

    We at get you the complete information in all your loan requirements and enable you to take a well informed decision while taking the loan.
    Lowest Rate Loan against Property

    • Before applying/taking finance, you must compare the rate of interest available from the different banks and NBFCs online on a neutral platform like (which provides an unbiased comparison for your requirement) to find out the lowest rate available in the market place.
    • Different Banks may offer you different rate for LAP. This will be based on your overall profile (type of employment, annual/monthly income, CIBIL score, etc.). It also depends on the Bank/ NBFC’s cost of funds, lending rate, operational cost of bank (MCLR), etc. If one lender’s cost of fund is higher than the other lender’s cost, then the particular bank may offer you a higher rate than the other, which you may not be aware of.
      Here assists you to compare LAP offers from 50+ lenders on a single platform. We enable you to find the lowest or best rate of interest.
    • In short, brings all the leading lenders at a single platform to help you cherry pick the lowest rate loan.
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