A Loan Against Property (LAP) is one of the most popular secured loan options in India. It allows you to pledge your residential, commercial, or industrial property as collateral to get funds from a bank or NBFC. Compared to personal loans, LAP offers higher loan amounts, lower interest rates, and longer repayment tenures.
In 2025, with increasing financial needs for business expansion, education, medical emergencies, and debt consolidation, Loan Against Property has become a go-to solution for salaried individuals, self-employed professionals, and business owners.
This article will cover eligibility, interest rates, top banks/NBFCs, documents required, EMI calculation, and FAQs related to Loan Against Property in India.
What is a Loan Against Property (LAP)?
A Loan Against Property is a secured loan where you pledge your property (residential or commercial) as collateral. The bank evaluates the market value of your property and provides a loan amount, usually up to 50% – 70% of its value.
- Loan amount: ₹5 Lakhs to ₹25 Crores (varies by lender)
- Interest rates: Starting from 8.5% p.a.
- Tenure: Up to 20 years
- Collateral: Residential, commercial, or industrial property
Why Choose a Loan Against Property?
✅ Benefits:
- Higher loan amount compared to personal loans
- Lower interest rates than unsecured loans
- Longer repayment tenure (up to 20 years)
- Use for any purpose – business, education, wedding, or medical needs
- Property ownership retained – You continue to use your property
❌ Drawbacks:
- Property remains mortgaged until repayment
- Loan approval takes longer due to property valuation
- Risk of losing property if loan is not repaid
Top Banks Offering Loan Against Property in India 2025
1. HDFC Bank LAP
- Interest Rate: 8.75% – 11.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹10 Crores
- Tenure: Up to 15 years
- Processing Fee: Up to 1.5% of loan amount
- Key Features:
- High-value loans for business & personal use
- Flexible repayment options
- Quick loan disbursal
2. ICICI Bank LAP
- Interest Rate: 8.9% – 12.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹7 Crores
- Tenure: Up to 15 years
- Processing Fee: Up to 1%
- Key Features:
- Balance transfer facility available
- Quick processing for salaried professionals
- Available against both residential & commercial property
3. Axis Bank LAP
- Interest Rate: 9% – 11.5% p.a.
- Loan Amount: ₹5 Lakhs – ₹5 Crores
- Tenure: Up to 20 years
- Processing Fee: 1% – 1.5%
- Key Features:
- Long tenure with affordable EMIs
- Simple documentation
- Balance transfer and top-up available
4. Kotak Mahindra Bank LAP
- Interest Rate: 8.75% – 12% p.a.
- Loan Amount: ₹10 Lakhs – ₹5 Crores
- Tenure: Up to 15 years
- Processing Fee: Up to 1.5%
- Key Features:
- Competitive rates for salaried & self-employed
- High-value loans for business needs
- Flexible repayment options
5. IndusInd Bank LAP
- Interest Rate: 9% – 13% p.a.
- Loan Amount: ₹5 Lakhs – ₹7 Crores
- Tenure: Up to 15 years
- Processing Fee: 1% – 2%
- Key Features:
- Available for both residential and commercial properties
- Fast approval process
- EMI customization options
Top NBFCs Offering Loan Against Property in 2025
1. Bajaj Finserv LAP
- Interest Rate: 8.5% – 14% p.a.
- Loan Amount: Up to ₹25 Crores
- Tenure: Up to 20 years
- Key Features:
- Online application & approval
- Flexible part-prepayment option
- Doorstep document collection
2. Tata Capital LAP
- Interest Rate: 9% – 13.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹5 Crores
- Tenure: Up to 15 years
- Key Features:
- Custom EMI plans
- Quick loan processing
- Minimal documentation
3. PNB Housing Finance LAP
- Interest Rate: 8.75% – 11.5% p.a.
- Loan Amount: ₹10 Lakhs – ₹10 Crores
- Tenure: Up to 20 years
- Key Features:
- High-value loans for business expansion
- Attractive balance transfer offers
- Transparent process
Eligibility Criteria for Loan Against Property
- Age: 21 – 65 years
- Employment: Salaried or self-employed professionals
- Minimum Income: ₹25,000 per month (varies by lender)
- Property Type: Residential, commercial, or industrial (owned by borrower)
- CIBIL Score: 700+ preferred
Documents Required
- Identity Proof: PAN card, Aadhaar card, Passport, Voter ID
- Address Proof: Utility bill, Aadhaar, Passport
- Income Proof: Salary slips, bank statements, ITR for last 2–3 years
- Property Documents: Title deed, ownership papers, NOC from society
- Photographs: Passport size
EMI Calculation for Loan Against Property
Your EMI depends on:
- Loan Amount
- Interest Rate
- Loan Tenure
📌 Example:
For a loan of ₹50 Lakhs at 9% interest for 15 years, the EMI would be around ₹50,700 per month.
Pros and Cons of Loan Against Property
✅ Pros:
- Higher loan amounts (up to ₹25 Crores)
- Lower interest rates than personal loans
- Long repayment tenure (up to 20 years)
- Flexible end-use of funds
❌ Cons:
- Property remains mortgaged
- Valuation & approval may take time
- Risk of losing property if unable to repay
Tips to Get the Best LAP Deal
- Compare offers from multiple banks/NBFCs
- Choose a shorter tenure to save on interest
- Maintain a strong credit score for better rates
- Negotiate processing fees
- Check foreclosure & part-payment terms before applying
FAQs
1. How much loan can I get against my property?
👉 Usually 50% – 70% of the property’s market value.
2. Which is better: Loan Against Property or Personal Loan?
👉 LAP is better for higher loan amounts and longer tenure, while personal loans are better for smaller, urgent needs.
3. Can I get LAP without income proof?
👉 No, most lenders require income proof to ensure repayment capacity.
4. What happens if I don’t repay LAP?
👉 The lender has the legal right to auction your property.
5. Can NRIs apply for a Loan Against Property in India?
👉 Yes, many banks allow NRIs to avail LAP with proper documentation.
Conclusion
A Loan Against Property is an excellent option for individuals and businesses looking for large funds at affordable interest rates. In 2025, leading banks like HDFC, ICICI, Axis, Kotak Mahindra, and IndusInd, along with NBFCs like Bajaj Finserv, Tata Capital, and PNB Housing Finance, are offering attractive LAP schemes.
Before applying, compare interest rates, calculate EMIs, and ensure timely repayment to protect your property. With the right planning, LAP can help you meet major financial needs without liquidating your assets.
