Property Loan Overview

A Property Loan, often referred to as a Loan Against Property (LAP), is a secured loan where you pledge your residential, commercial, or industrial property as collateral to get funds. The loan amount is typically a percentage of the market value of the property.

Benefits of a Property Loan

1. High Loan Amount
   You can get a higher loan amount compared to personal loans—up to 60-70% of the property’s market value.

2. Lower Interest Rates
   Since it's a secured loan, interest rates are generally lower than unsecured loans.

3. Flexible Usage
   The funds can be used for business expansion, education, medical emergencies, weddings, etc.

4. Longer Repayment Tenure
   Tenure can go up to 15–20 years, reducing EMI burden.

5. Ownership Retained
   You continue to own and use the property while repaying the loan.

6. Top-Up Facility Available
   Many lenders offer additional funds through a top-up loan during the tenure.

Eligibility Criteria

1. Age

   • Salaried: 21 to 60 years

   • Self-employed: 21 to 65 years

2. Employment/Business Status

   • Salaried individuals working in government or private sectors

   • Self-employed professionals/business owners

3. Income Stability

   • Stable monthly income or consistent business revenue

4. Credit Score

   • A good credit score (650 or above) is preferred

5. Property Ownership

   • You must own a residential or commercial property with clear legal title

6. Property Condition

   • The property should be in good condition, free from legal disputes.

Documents Required

For Salaried Individuals:

• ID Proof: Aadhar Card, PAN Card, Passport

• Address Proof: Utility bill, Aadhar, Voter ID

• Income Proof: Latest 3–6 months salary slips, Form 16 or IT returns (last 2 years)

• Bank Statements: Last 6 months

• Property Documents: Title deed, property tax receipt, approved building plan

• Employment Proof: Job confirmation letter or company ID card

For Self-Employed Individuals:

• ID and Address Proof: PAN, Aadhar, Utility bill

• Income Proof: ITR for last 2–3 years, CA-certified balance sheet, profit & loss account

• Business Proof: GST registration, business license, registration certificate

• Bank Statements: Last 6–12 months (personal and business accounts)

• Property Documents: Original title deed, NOC from society or builder, encumbrance certificate