A Property Loan, also known as a Loan Against Property (LAP), is a type of secured loan where an individual can borrow money by pledging their residential, commercial, or industrial property as collateral. It is an ideal financial solution for personal or business needs such as education, medical expenses, business expansion, or debt consolidation.

Advantages of Property Loan

Large Loan Amount

Get access to a higher loan amount based on the market value of the property.

Lower Interest Rates

Since it is a secured loan, the interest rates are lower than personal loans.

Multi-purpose Usage

  1. Funds can be used for any legal purpose—business, education, marriage, medical treatment, etc.

  2. Longer Tenure
    Loan tenure can extend up to 15-20 years, making EMIs manageable.

  3. Continued Use of Property
    Even though the property is mortgaged, you retain ownership and usage rights.

  4. Quick Processing
    Faster disbursal with minimal documentation, especially for existing customers.

  5. Top-up Facility
    Option to apply for additional loan on the same property.

Eligibility Criteria

Although criteria vary by lender, general requirements are:

  1. Age

  2. Salaried: 21 to 60 years

  3. Self-Employed: 25 to 65 years

  4. Income

  5. Steady and verifiable income from salary or business.

  6. Employment/Business Stability

  7. Self-employed: Minimum 3 years in current business

  8. Salaried: Minimum 2-3 years of work experience

  9. Property Ownership

  10. Property must be legally owned and have clear title documents.

  11. Credit Score

  12. A good credit score (usually 650 and above) improves approval chances and interest rates.

Documents Required

For Salaried Individuals:

Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID

Address Proof: Utility bills, Rent Agreement, Passport

Latest 3–6 months' salary slips

Form 16 or last 2 years’ ITR

Bank statements (last 6 months)

Property documents (Sale deed, Title deed, Tax receipts)

Employment proof (ID card, offer/appointment letter)

For Self-Employed Individuals:

Identity and Address Proof

Proof of Business: GST Certificate, Business License

Income Tax Returns (last 2–3 years)

Audited Profit & Loss Statement and Balance Sheet

Bank statements (last 6–12 months)

Property documents (ownership papers, no encumbrance certificate)