Loan Against Property (LAP) — Rates, LTV & Eligibility

A property being valued as security for a loan against property

Who it suits

Loan Against Property, in one paragraph.

Someone with meaningful equity in a residential or commercial property and a large, defined need — a medical event, an education abroad, a debt consolidation, or capital for a business. Cheaper than any unsecured route, and considerably more serious.

Owners of a fully constructed, clearly titled, self-occupied or let-out property.
Borrowers needing more than a personal loan will stretch to.
Anyone consolidating several expensive unsecured debts into one secured one.
Not suitable if the repayment plan depends on an uncertain future event.

Key parameters

The numbers that shape the offer.

9–14% Indicative rate p.a., reducing balance

50–70% Loan-to-value against market value

Up to 15 yrs Tenure, shorter than a home loan

Indicative only, sourced from public lender information as of July 2026. Your actual rate, tenure and sanctioned amount are set by the lender based on your profile.

Eligibility & documents

What you need before you apply.

Most rejections at this stage are paperwork failures, not credit failures.

Eligibility criteria

Age 21 to 65 at loan maturity.
Clear and marketable title, with the property free of existing charges.
Bureau score of 700+.
Demonstrable repayment capacity — this is not an asset-only decision.
Property valuation and legal opinion commissioned by the lender.

Documents required

PAN, Aadhaar and photographs of all owners.
Complete title chain, sale deed and encumbrance certificate.
Approved building plan, occupancy certificate and tax receipts.
Income proof: 3 years of ITRs, or payslips plus Form 16.
Last 12 months of bank statements.
Existing loan sanction letters, if the property carries any charge.

EMI calculator

See the monthly number before you commit.

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Loan amount ₹

₹5 lakh to ₹5 crore

Rate of interest (p.a.) %

8% to 18%. Secured, so lower than unsecured routes

Loan tenure Yr

1 to 15 years

Monthly EMI ₹0

Principal: ₹0
Total interest: ₹0
Total payable: ₹0

Indicative only, on a reducing-balance basis. Excludes processing fees, insurance and statutory charges. KredExperts does not set rates; final terms come from the lender.

Loan Against Property FAQs

The questions that come up first.

How is LAP different from a home loan?

A home loan buys the property; a LAP borrows against one you already own. LAP funds a lower share of value (50–70% against 75–90%), carries a higher rate, and runs a shorter tenure — but it has almost no end-use restriction, whereas a home loan must go toward the property.

What can I use the money for?

Nearly anything legitimate: business capital, education, medical costs, a wedding, debt consolidation. Lenders do ask you to state the purpose and will decline speculative uses. Using it for business has a tax consequence worth checking — see the business LAP page.

What happens if I cannot repay?

The lender can enforce the security and sell the property under the SARFAESI Act. This is not theoretical. Borrow against a home only when the repayment plan holds up under a pessimistic scenario, not an optimistic one.

Will a rented-out property qualify?

Usually yes, and the rental income may even strengthen the file. Commercial property is accepted by most lenders but often at a lower LTV and a slightly higher rate than residential.

How long does sanction take?

Typically 2–4 weeks. The delay is rarely the credit decision — it is the legal title search and the physical valuation, both commissioned by the lender. Having the complete title chain ready shortens it more than anything else you can do.

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Capital out of property you are not willing to sell.