Loan Against Property

Loan Against Property or Mortgage Loan is a kind of secured personal loan that you avail by pledging your property as collateral. You can avail a loan amount of up to Rs.25 crores at an interest ranging from 8.45% to 22% per annum for up to 20 years.

Summary of Loan Against Property
Interest Rate8.45% p.a. onwards
Loan AmountUp to Rs.25 crore
Loan TenureUp to 20 years
Processing Fee1% - 3% of the loan amount + GST

Top Loan Against Property Schemes & their Details

Axis Bank Home Loan
LIC Housing Finance Home Loan
HDFC Home Loans
9Up to 65% of the value of the propertyUp to 15 years
SBI Home Loan
Deutsche Bank Home Loan

*The interest rates are subject to change at the discretion of the lender or according to RBI directives.

Which Factors Influence Loan Against Property interest rates?

Credit Score

It’s advisable to keep a credit score higher than 700; this will give you the chance to avail a Loan Against Property at a lower interest rate.

Loan Tenure

The longer the repayment tenure, the lower the interest rate and vice versa. Therefore, make sure to give your loan tenure a thought before you decide.

Property Type

The type of property – residential property, commercial property, property with multiple owners – plays a role in determining interest rate as well.

Other Factors

Factors such as the applicant’s age, income, occupation are also considered by the lender when they decide on the interest rate.

Main Features of Loan Against Property or Mortgage Loan

Loan Against Property or Mortgage Loan is a kind of secured personal loan that you avail by pledging your property as collateral. You can avail a loan amount of up to Rs.25 crores at an interest ranging from 8.45% to 22% per annum for up to 20 years.

  1. Low Interest Rates
    Since this is a secured loan, the interest rate is lower compared to a personal loan. And the best part is – if you maintain a good credit score, the interest can come down further.
  2. Flexible Loan Repayment
    The loan tenure for a mortgage loan can go up to 20 years, lessening the burden of higher monthly repayments.
  3. Simple documentation and Quick approvals
    Generally, the documentation process for mortgage loans are relatively simpler compared to other kinds of loans. This is because your property is already pledged as security with the lender.
  4. Pre-closure options
    You also get the option to prepay and close the loan. In fact, you won’t even have to pay any penalty if you’ve opted for a variable interest rate and a nominal charge applied in case of fixed interest rate.
  5. Continued Ownership of Property
    In case of mortgage loan, even though your property serves as a collateral with the lender, the ownership remains in your name – this means that you can even sell the property for funds to repay the loan in case you’re unable to.

Eligibility criteria for Loan Against Property

Here are the criteria you should meet to be eligible for a loan against property.

  • Type of property : The property should be in India, be it a residential or commercial property.
  • Minimum and maximum age :  25 to 65 years
  • Employment type : Salaried or Self-employed
  • Net monthly income : Rs.25,000 minimum monthly income
  • Others : Legal property documents authorized by the Government of India – Registration Certificate, Property Tax Receipts, Sales Deed, etc.

Documents required to apply for the Loan Against Property

As evident in the table below, documents required for a mortgage loan are minimal and quite simple.

  • Proof of Identity
    • PAN card
    • Passport
    • Driving License
  • Proof of Address
    • Passport
    • Electricity Bill
    • Aadhaar card
  • Property Documents
    • Copy of original sale deed
    • allotment-possession letter
    • NOC from society
  • Income Proof
    • Latest Income Tax Return
    • Certificate Form 16, salary slips
    • Audited financial sheet
    • Certificate of practice
    • Qualification Certificate
    • Shop Act License
    • Sales Tax Certificate

Offered to residential/commercial property owners, the loan amount can range from Rs.10 lakhs to Rs.7.5 crores. The processing fee is set at 1% + service taxes, with the maximum amount being limited to Rs.50,000 + service taxes. The applicant’s minimum monthly income should be Rs.25,000 (or Rs.3 lakhs per annum).

Note : No prepayment penalty applies on SBI Loan Against Property

Bank/LenderProcessing FeePre-closure ChargesAge Criteria
SBI1%NilThe loan should be liquidated before the eldest borrower reaches 70 years of age.

How to apply for a Loan Against Property at Fincity?

Sign Up

Sign up and fill up the application with basic personal details.

Check Credit Score

Get a free Credit Report to know your creditworthiness.


Fill up the E-KYC form

Income & Property Details

Enter details of your salary and any other source of income.Enter property details like Builder name,Project name, Property address, etc

Loan Offers

Explore Loan Offers and find the one most suitable for you.


Self-attest the document with an e-signature

That’s all! You will receive your LAP sanction letter in minutes.

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