* How much do you need?

₹2,00,000
>= ₹75,00,000

* How much do you earn per year?

<= ₹2,00,000
>= ₹75,00,000

Your occupation?

* Where do you live?

Tell us about the property you want to mortgage

Finally tell us about yourself!

Thanks! That's all we need!

Someone from our team will be getting in touch with you shortly.

What is Loan Against Property?

The loan which is provided against any collateral mortgage property is called Property Mortgage Loan or Loan Against Property. Normally all the private sector and public sector banks are aggressively providing property loans in India. Apart from banks, lots of NBFC are also providing mortgage loans in Pune. Due to high competition in these products, there are lots of advantages to loan customers. They get low interest rates with higher tenure.

In case of loan against property, the approval takes time of 6 to 10 days. Banks take the charge of property at the time of loan disbursal. Key players like HDFC bank, ICICI Bank, ING Vysya Bank, Kotak Mahindra, Axis bank etc. are the major stake holder from private sector banks in India. Banks interest rates are normally 9.5 % to 16 % in reducing balance.

Property Loans

  • Property Loans start from Rs 2 Lacs onward depending on your property valuation and your individual eligibility.

  • Loan against property can be borrowed up to 100% of market value of the same property.

  • Easiest and Flexible for taking option between an EMI based loan or an overdraft facilities.

  • Property loan is available with the option of high tenure loans for low burden of repayment.

  • Low MCLR rate and maximum tenure with low interest rates as comparison with Personal loan or Business loan.

  • Simple documentation and speedy processing.

  • Property Loan avail for salaried & self-employed individuals or company also.

Features of Loan Against Property

  • It is second cheapest loan in market after Home Loan. It works out to be much cheaper than Business loan which is usually issued at interest rates in the range of 9.5% – 16%.

  • On the basis of security, they provide longer tenure. The tenure for a Loan Against Property is usually longer than personal loan. Generally, based on a secured loan tenure goes up to 15 years.

  • Due to a secured nature of loan the another quality of LAP is lower rate of interest which makes this product lowest EMI product.

  • LAP requires normal documentation like personal loan or business loan. Only property documents added for collateral purpose.

Interest Rates

Banks NameInterest rateProcessing fees
Special Offer9.50 %0.75 % + service tax
ICICI LAP10.00 % to 12.00 %1 % + service tax
Kotak Mahindra LAP10.75 % to 12.75 %1 % + service tax
RBL Bank Limited10.75 % to 12.75 %1 % + service tax
L & T Finance Ltd10.75 % to 12.50 %1 % + service tax
India bulls10.00 % to 12.75%1 % + service tax
Deutsche Bank9.75 %0.75 % + service tax
DCB Bank10.00 % to 12.75%1 % + service tax
Cholamandalam11.00 % to 12.75%1 % + service tax
Capri Global12.00 % to 13.75%1 % + service tax
Reliance Capital11.00 % to 12.75%1 % + service tax
DHFL10.00 % to 12.75%1 % + service tax
Shriram Housing12.00 % to 18.00 %1 % + service tax
Aadhaar Housing13.00% to 15.00 %1 % + service tax
Capital First13.00% to 18.00 %1.5 % + service tax
Aditya Birla Home Finance10.00% to 12.00 %1 % + service tax
Vistaar Finance15% to 22%Upto 2 % + service tax
Yes Bank10 % to 11 %1 % + service tax

FAQs

What are the documents required for applying for a loan against property?

For salaried customers:

  • Applicant and Co applicants signed application form with cross signed photograph
  • Proper Identity and Address Proof with age proof
  • Latest three month Salary Slips
  • Last two years Form 16
  • Updated Bank Statements (Last 6 months)
  • Initial Processing fee cheque

For Self-Employed customers:

  • Complete filled application form with signed photograph
  • Updated Identity and address Proof of applicant and co applicant
  • Business stability existence proof & Education Qualifications.
  • Last 3 years complete ITR
  • Last 3 years updated P&L and Balance Sheet along with audit report
  • Updated Bank Statements (Last one year)
  • Initial Processing fee cheque
Who can avail a Loan against Property in India?

Any salaried as well as Self-Employed person can avail Loan against property (LAP) in India, irrespective of the monthly or annual income.

On which basis banks process application for Property loan?

Banks process any of loan application on the basis of below mentioned factor:

  • Proper KYC documentations set.
  • Application age criteria for LAP (Minimum age 21 Years and maximum 65 years)
  • Actual and proper property valuation as per legal and technical report.
  • Obligating of existing loan liabilities (if any)
  • Work experience in current profession.
  • Proper set of financial documents of the customer.
  • Number of owners of the property.
How much loan can I get?

You can get a property loan up to 65% of market value of your property depending on the finance policy of the issuing bank.

How would the market value of my property be finalized?

The market value of the property would be determined by a valuation conducted by legal and technical team of the Loan Provider.

What is the major difference between a Home Loan and Property Loan?

The basic difference is the end use of loan between a Home Loan and a Loan against property. Home loan is taken for the purpose of purchasing a residential property whereas a property loan can be taken for any other purpose like business or any other requirements.

Which are the main stages involved in the process of availing the property loan?
  • Application for Loan.
  • Processing of Application.
  • Loan Documentation.
  • Initiation for Verification / Valuation of property.
  • Credit Sanctioning of the Loan.
  • Disbursement of Loan.
Is there any processing fee charged by the lender?

Yes, there are some fees and other legal charges to be paid to the bank depending on their respective terms and conditions.

How many days does the bank take to approve the property loan?

The normal processing of the loans takes 6 to 12 working days once all the documents are submitted. It also depends upon your income profile and documentation.

Does the property have to be insured?

Yes. The property has to be completely insured against fire, flood, earthquakes and other appropriate hazards during the tenure of the property loan.

How can I repay my property loan?

The repayment of the property loan is done through EMI or it can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS).

How Can I pre-pay my loan?

The loan can be pre-paid along with the pre-payment charges. Usually the bank charges 2% to 4 % of the principal pre-paid.

Process

The loan against property goes through the following stages.

  • Application for Loan.
  • Processing of Application.
  • Loan Documentation.
  • Initiation for Verification / Valuation of property.
  • Credit Sanctioning of the Loan.
  • Disbursement of Loan.

Documentation Required for Loan Against Property

  • Identity Proof

  • Residence Address Proof

  • 6 month Bank Statement

  • 3 month salary slips

  • Previous or current job experience proof

  • Form 16 for previous employment / ITR for self employed

  • Property Document

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