5 Things To Know Before Applying For Loan Against Property In India

Property is a valuable asset that appreciates with time and can help you in times of need. A loan against property (LAP) is a secured loan taken against your property. These loans allow you to leverage your property effectively and use the funds as per your requirement.

5 Things To Know Before Applying For Loan Against Property

1. What Is The Property’s Value?

The amount of loan you can get depends on the property value. The loan to value ratio for LAP loan India ranges from 40% to 75%; you can a loan ranging from 40% to 75% of your property value. The property value depends on the locality, builder, amenities available, and the size of the property. Being aware of the accurate property value before applying for the loan will ensure that you get the desired amount of loan. 

2. Who Can Apply For The Loan?

Lenders have different eligibility criteria for different types of loans, and they may be some variation across lenders too. Before you apply for a loan, find out the requirements as laid down by the lender. The basic eligibility criteria for LAP loan India are listed below:

  • Loans are offered to salaried as well as self-employed individuals.
  • For salaried individuals, the accepted age bracket is 21 to 68 years.
  • For self-employed applicants, it is between 28 and 70 years.
  • Applicants must have an acceptable credit score.
  • The property to be pledged must be free from any disputes.
  • Applicant’s source of income is also considered.

3. What Is The LAP Loan Interest Rate?

Interest rates vary across lenders. When you apply for a loan against property, compare the interest rate charged by different banks and NBFCs along with the eligibility criteria to choose the deal that works for you the best. LAP loan interest rate varies from 8% to 25%; selecting the lender that offers you the best rate can help you save a lot of money. 

4. What Documents Are Required For A LAP

The documents required for a salaried individual are:

  • Identity proof
  • Address proof
  • PAN card
  • Property documents
  • Bank account statement for the last 3 months
  • Salary slips
  • Income tax return.

The documents required for self-employed individuals are:

  • Identity proof
  • Address proof
  • PAN card
  • Property documents
  • Bank account statement for the last 6 months
  • Business documents
  • Financial statements and income documents

5. What Is The LAP EMI Calculator?

You must repay the borrowed amount in equated monthly installments spread across the loan tenure. Inability to repay on time impacts your credit score negatively, and you also have to pay hefty fines. Using a loan against property EMI calculator gives you an estimate of your monthly installments. You can budget your expenses better, reduce the loan amount or increase the tenure as the case may be if you think the monthly installment is too high for you. You can also compare lenders based on the LAP loan interest rate to assess the difference in the EMI.


LAP loans in India can help you access funds quickly when you need them. You can use the loan as per your needs. However, before you apply for a loan, it is crucial to know the above five aspects and research well before signing the dotted line.

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Author: navneetsharma1