Loan Against Property
A Loan Against Property is a secured loan where you pledge your residential, commercial, or industrial property as collateral to borrow funds. It allows you to unlock the market value of your property without selling it — perfect for large expenses like business expansion, education, or medical emergencies.
🏡 Eligible Property Types
- Self-occupied residential property
- Rented residential property
- Commercial or business-use property
- Vacant land (depends on lender policy)
🔍 Features & Benefits
- High Loan Amount: Up to 60–70% of the property’s market value
- Lower Interest Rates: Compared to unsecured loans
- Longer Tenure: Up to 15–20 years
- Continued Ownership: You retain property ownership
- Flexible Usage: Business needs, education, weddings, or debt consolidation
📑 Documents Required
For Individuals:
- Identity & address proof (Aadhaar, PAN, Passport)
- Income proof (salary slips, ITR, Form 16)
- Property documents (title deed, NOC, tax receipts)
- Bank statements (past 6–12 months)
For Self-Employed:
- Business registration documents
- Balance sheet and P&L statements (audited)
- GST returns or ITR filings
💵 Loan Terms
- Interest Rates: Typically 8% – 13% per annum
- Loan-to-Value (LTV): 50% – 70% depending on property and lender
- Processing Fee: 0.5% – 2% of the loan amount
- Tenure: Up to 15–20 years
- EMIs: Calculated based on amount, rate, and tenure
✅ Eligibility Criteria
- Age: 21–65 years
- Salaried or self-employed with a stable income
- Clear title of the mortgaged property
- Satisfactory credit score (usually 650+)
