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Loan Against Property

Unlock your property's value

Borrow against your owned residential or commercial property for large funding needs — at attractive rates and longer tenures.

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What is Loan Against Property?

A Loan Against Property (LAP) is a secured loan where you pledge an owned property as collateral. Because it's secured, it often offers larger amounts and longer tenures than unsecured loans, at lower rates. The property stays yours; only a charge is created.

Who it may suit

  • Property owners needing large funds
  • Business expansion, education, medical or debt consolidation
  • Those wanting lower rates via a secured loan

Documents you'll typically need

  • KYC — PAN & Aadhaar / address proof
  • Income proof (salary slips & Form 16, or ITR)
  • Bank statements
  • Property documents & title papers

Common reasons for delay or rejection

  • Property title, legal or valuation issues
  • Low credit score or high existing EMIs
  • Incomplete property or income documents
Current Market Rates

Indicative interest rates

Approximate current market ranges as of June 2026. Your actual rate depends on your profile and is decided by the respective bank or NBFC.

Starting from
9.00%
per annum*
Typical market range
9% – 14% p.a.

Rates start around 8.45%–9.25% with public sector banks and housing finance companies (e.g. IDFC, Union Bank, Bank of Maharashtra, SBI, PNB Housing, Canara Bank) and typically range from 9% to 14% depending on your profile, property type and loan amount. Residential and self-occupied properties usually get better rates than commercial ones.

*Indicative current market rates as of June 2026, compiled from publicly available sources. Shah Communication is a financial consultancy — the final interest rate, eligibility and terms are decided solely by the respective bank or NBFC based on your profile.
Good to Know

Charges & eligibility

Actual rates, processing fees and charges vary by lender and are confirmed at the time of application.

📉

Interest Rate

Depends on your credit profile, income and the lender. We help you compare suitable options.

🧾

Processing Fee

A one-time fee charged by the lender to process your application.

✅

Eligibility

Based on income, existing EMIs (FOIR), credit score, age and employment type.

Why LAP

Features & benefits of a Loan Against Property

  • ✅
    Easy to get: LAP is a secured loan, making it easier for lenders to offer money as it is backed by collateral.
  • 📅
    Longer tenure: Banks usually sanction LAP between ₹3 Lakhs and ₹100 Crores, with repayment of up to 20 years.
  • 📉
    Lower interest rate: Compared to personal loans, LAP has a lower rate due to the collateral security.
  • 💳
    Lower EMI: With a longer tenure and lower interest rate, EMIs are more affordable.
  • 🔄
    Flexibility: Banks offer flexible products — term loans, overdraft facilities and reverse mortgages.
  • 🏢
    Types: Loan against residential/commercial property, loan against rent receivables, reverse mortgage and more.
  • 🧾
    Tax benefits: Available if the LAP is used for home renovation, subject to proof of end use.
Am I Eligible

Loan Against Property eligibility

Typical criteria lenders look at. Exact requirements vary by lender.

AgeMinimum 21 years and maximum 70 years
ProfessionBoth salaried and self-employed individuals with regular income are eligible
Joint ApplicationsCo-applicants allowed; their income can be considered for eligibility
OwnershipApplicant must own unencumbered property — residential, commercial or industrial. Agricultural land is not accepted. Property should be vacant or self-occupied in most cases; some banks don't accept rented or leased properties. Loans against vacant residential plots are allowed by some lenders.
MarginUsually 10%* to 50%* of the property's market value
Current ObligationsTake-home pay should be at least 50%* after all EMIs, including the new LAP
Credit HistoryCIBIL score of 700+ preferred
Know the Costs

Mortgage loan interest rate & charges

  • 💵
    Upfront fees: Non-refundable, usually ₹3,000 – ₹10,000.
  • 🧾
    Processing fees: 0.50%* – 1.00%* of loan amount.
  • 🏠
    Valuation charges: Sometimes charged separately for property valuation.
  • ⚖️
    Legal scrutiny charges: May be included in or separate from processing fees for legal verification.
  • 📄
    Mortgage registration charges: In some states like Gujarat — 0.35%* of loan amount above ₹1 Cr, and up to ₹1 Cr a stamp duty of ₹7,000.
  • 🔓
    Prepayment charges: 2%* – 5%* of outstanding loan (varies by bank).
  • 🛡️
    Insurance: Property insurance is mandatory; optional loan/health/personal insurance may be offered.
Compare Lenders

Loan Against Property interest rates of banks & NBFCs 2026

Indicative rates from leading lenders. Final terms are decided by each bank or NBFC based on your profile and property.

Bank NameInterest Rate
HDFC Bank
9.50%* – 11.00%*
IDFC First
9.00%* – 20.00%*
HSBC Bank
9.75%*
Kotak Mahindra Bank
9.50%* – 10.50%*
PNB Housing
9.24%* – 12.45%*
State Bank of India
10.10%* – 11.65%*
Federal Bank
11.15%* – 14.80%*
Home First
12.80%* – 18.50%*
Bank of India
10.10%*
Bank of Baroda
10.85%* – 16.50%*
IDBI Bank
9.50%* – 11.45%*
Central Bank of India
9.75%* – 13.00%*
Bank of Maharashtra
10.95%* – 11.95%*
Jammu & Kashmir Bank
11.45%*
South Indian Bank
13.15%* – 14.40%*
YES Bank
8.85%*
*Rates are indicative, vary by lender and applicant profile, and are subject to each lender's policy at the time of application. Logos are trademarks of their respective owners, shown for identification only.
Step by Step

Loan Against Property process

  1. Visit the lender's official website and fill out the online loan application form.
  2. Choose the offer that best suits your requirement after form submission.
  3. The lender verifies KYC and income proof documents.
  4. Property inspection and personal discussion are conducted by the lender.
  5. Legal search is carried out by bank advocates to ensure clear title of the property.
  6. Property valuation and eligibility assessment follow.
  7. Once approved, the bank issues a sanction letter with detailed terms and conditions.
  8. Execute and register the equitable mortgage if applicable.
  9. Disbursement is completed post-documentation.
Choose a Purpose

Types of Loan Against Property

🏭
Business Expansion Loans

For machinery purchase, working capital or new investments. LTV — Residential: 65–70%*, Commercial: 55–65%*, Industrial: 40–55%*.

💼
Working Capital Overdraft

Overdrafts sanctioned against property for daily business needs, based on property value and projected turnover.

👨‍👩‍👧
Personal Expenses

For medical, educational, marriage, travel or consumer purchase purposes.

🛠️
Home Renovation

For home repairs or improvements when other renovation loans are not suitable.

🏢
Lease Rental Discounting

Loans against future rent receivables — banks finance 75%*–90%* of receivables; tenure ends before lease expiry.

Keep Ready

Documents required for mortgage loan

🪪 Identity Proof
  • PAN Card
  • Aadhaar Card
  • Voter ID
  • Passport
  • Driving Licence
📍 Address Proof
  • Registered Rent Agreement
  • Aadhaar Card
  • Driving Licence
  • Lease Agreement
  • Passport
  • Latest Electricity Bill
🧾 Income / Financial Documents
  • Salary slips for last 6 months (salaried)
  • IT Returns for past 2–3 years
  • Bank statement of salary account (1 year)
  • Profit & Loss statement and Balance Sheet — 2 years (self-employed)
  • GST/Sales Tax registration certificates
  • Partnership deed or Certificate of Incorporation, if applicable
📄 Property Documents
  • Ownership documents
  • Encumbrance Certificate (30 years)
  • Latest Property Tax paid receipt
Close Early

Prepayment of Loan Against Property

  • You can prepay your LAP before the end of the tenure.
  • As per RBI rules, no prepayment charges apply for floating-rate mortgage loans.
  • Fixed-rate variants may attract 2%*–5%* of outstanding loan as prepayment charges, depending on the lender.
Our Advantage

Why apply for a Loan Against Property with Shah Communication?

  • 📉
    The lowest rate of interest: Compare multiple banks on one platform and choose the lowest rate available.
  • 🧾
    Lowest processing fees: Typically 0.50%*–1%* of loan amount — helps save significantly on high-value loans.
  • 📋
    Easy documentation: Our credit team assists with completing documentation formalities.
  • 📊
    Higher Loan-to-Value ratio (LTV): Compare various bank LTV ratios to choose the best fit.
  • 🔓
    Prepayment clauses: We help you compare hidden prepayment charges (2%*–5%*) across banks.
  • 💵
    Transaction charges: Advocate fee, valuation fee and mortgage registration costs — we help identify banks with inclusive processing fees.
With You Throughout

Additional support & expertise

  • Expert assessment of your demographic and financial profile.
  • Review of your previous repayment record for better eligibility.
  • Guidance on banking terms such as Legal Scrutiny Report (LSR) and other compliance requirements.
  • Assistance in understanding fine print and hidden loan conditions before approval.
FAQ

Loan Against Property questions

How much can I borrow against my property?
Lenders finance a portion of the property value (LTV, usually up to ~65–70%). The exact amount depends on valuation, your income and profile.
Can I use a commercial property?
Yes — both residential and commercial properties are usually accepted, subject to lender policy.
Do I keep ownership of my property?
Yes. You retain ownership; the lender only holds a charge until the loan is repaid.
Does Shah Communication approve it?
No — final approval, rate and terms are decided by the lending institution.
Ready When You Are

Let's find the right option for you

Check your indicative eligibility, compare suitable options and get expert guidance at every step.

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