Loan Against Property Achieve Your Financial Dreams With Ease

Loan Against property also known as mortgage loan is the type of loans where the property is kept mortgaged to lenders to acquire money. If one needs money to meet their financial emergencies like business expansion, sending kids to study abroad, child’s marriage, visits a dream destination, then they can opt for a LAP because it’s cheaper than the personal loan or traditional finances.

Getting a LAP has become easy due to the introduction of online application from some of the leading players in the market. Right from the cozy corners of their homes or offices you can check your loan eligibility, interest rates offered, processing fee, tenure and flexible ways of repaying back the money.

Whether you own a commercial or residential property, you can easily get a loan against property from any leading non-banking finance company or bank of your choice. All you have to do is just fit the eligibility criteria and must have some important things at your end. When you need quick funds in urgent needs you can apply for a LAP. So things to know get a suitable loan against property:


To be able to avail a LAP, you need to own that piece of land and property. Be it residential or plot, villa, apartment, shop or any piece of property owned by you makes you eligible for the loan. Your property papers should clearly state your ownership. If multiple people own the property, they can apply for LAP as co-applicants.

Property Value

The loan applicants’ eligibility is decided with the property value as well. The property that is kept mortgaged should not be too old, should be in current use, good location, and not under legal conflicts. Amount of loan to be approved will be decided on the value of your property. Ideally, lenders approve around 60-70% of the loan amount based on the current market value of the property. It’s better to talk to market experts and quote a value of your property.

Credit Score

To get the LAP you need to have exceptionally well credit score report. A credit score of 750+ is considered strong enough to have negotiations with the lenders for lower interest rates. Your credit score is dependent upon your financial history, profession, and income source and repayment capacity.

Loan processing fees

LAP gets sanctioned quickly when you apply online. But whether it’s online or offline, lenders will charge a basic processing fee towards the loan approval. The fee could range anywhere from 1-2% of the total loan amount being sanctioned. The processing fees, administrative charges, and other fees play an important role in implicating extra costs on your pockets. It’s better to know how much fees lenders charge before you apply for a loan.

Loan Repayment ability

Loan repayment is an important part of any form of a loan. Lenders will check the applicant’s repaying capacity before approving the LAP. It depends on the financial history, existing debt, prior financial commitments, profession, and additional income source. So check whether you can repay back your LAP on time and then apply for a suitable amount, online!