A Loan Against Property (LAP) is a secured loan where individuals or businesses pledge their residential, commercial, or industrial property as collateral to avail funds. The property can be land or land with a building, and banks typically fund up to 50–75% of the property’s current market value. This loan is ideal for meeting personal or business financial needs without selling the asset.
- Purpose: Consolidate high-cost debt, manage working capital, or meet personal (non-speculative/legal) needs.
- Collateral: Residential, commercial, industrial, or special-use properties (schools, hospitals, guest houses).
- Loan Amount: Up to ₹75 Cr, capped at 70% of the property value, subject to income eligibility.
- Eligibility: Based on financial health—balance sheet, bank statements, obligations, and credit history.
- Family Income Clubbing: Allowed for higher loan eligibility.
- Tenure: Flexible up to 15 years.
- Interest Rates: Starting at 8% p.a. with minimal processing fees.
- Tax Benefits: Interest deductions available under applicable laws.
- Product Variants:
- EMI-based Term Loan
- Drop-Line Overdraft (pay interest only on the utilized amount)
- Balance Transfer: Switch existing high-interest loans and save up to 2% on rates.
- Turnaround Time: 15–20 working days with leading Banks and NBFCs, subject to complete documentation.
- Property Requirements: Must be legally and technically clear and approved by lending institutions.
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