Maximize Prosperity with Loan Against Property
Choose YesLoans for a straightforward, transparent, and efficient way to secure significant funding by pledging your property.
What is Loan Against Property?
Loan Against Property (LAP) is a secured loan product where you mortgage your existing residential or commercial property to borrow a lump sum amount. The loan amount you can avail depends on the assessed market value of your property, your income, and your repayment capacity.
This loan is an excellent option for accessing significant funds at attractive interest rates because of the security provided. While the property acts as collateral, you continue to own and use it. Borrowers should always be aware of the terms and conditions, as defaulting on the loan could lead to the lender taking possession of the pledged property. YesLoans ensures you fully understand these aspects, providing clarity and support through your borrowing journey.
Types of Properties Accepted for LAP
You can obtain a Loan Against Property by mortgaging various types of immovable assets:
Loan Against Property Eligibility & Documentation: Streamlined for You
YesLoans simplifies the application process by clearly outlining the requirements for Loan Against Property. While specific criteria vary by lender, here’s a general overview:
General Eligibility Criteria for Loan Against Property:
Eligibility Criteria
- Age: 21 to 60 years.
- Minimum Net Monthly Income: Typically ₹30,000 - ₹50,000+ (varies significantly based on city, lender, and loan amount).
- Work Experience: Minimum 3 years of total work experience, with at least 1 year in the current organization.
Documentation
- KYC: Photo Identity Proof (PAN Card, Aadhaar Card, Passport), Address Proof (Aadhaar, Utility Bills), Passport-size photographs.
- Income Proof: Last 3-6 months' Salary Slips, Last 2 years' Form 16, Last 6-12 months' Bank Account Statements (showing salary credits), Latest ITR.
- Employment Proof: Employment Certificate/Appointment Letter, Company ID card.
Self-Employed Individuals (Professional & Non-Professional):
Eligibility Criteria
- Age: 21 to 65 years.
- Business Vintage: Minimum 3-5 years of business continuity.
- Income: Consistent and adequate business income as per ITRs and financials.
Documentation
- KYC: Same as salaried individuals.
- Income Proof: Last 2-3 years' ITRs with computation of income, Certified Financial Statements (P&L and Balance Sheet) for the last 2-3 years, Business Bank Account Statements for the last 6-12 months.
Business Proof: Business Profile, Proof of Business Registration (Shop & Establishment Certificate, GST Registration, Partnership Deed, MoA/AoA), Professional Practice Certificate (for professionals).
Eligibility Criteria
- Age: 21 to 60-65 years.
- Work Experience: Minimum 2 years of overseas employment/business.
- Co-Applicant: Often requires a Resident Indian co-applicant (direct close relative).
Documentation
KYC: Photocopy of Passport & Visa, NRI status proof (OCI/PIO Card if applicable), Indian & International Address Proof.
Income Proof: Salary Certificate (in English) or last 6 months' Salary Slips, Last 6-12 months' NRE/NRO Bank Account Statements (Indian) and overseas bank account statements.
- Employment Proof: Appointment Letter, Job Contract, Labour/ID card.
Power of Attorney (PoA): If applying from abroad, a Power of Attorney attested by the Indian Consulate/Embassy in the resident country. If in India, a locally attested PoA.
Eligibility Criteria:
- Age: 21 to 60 years.
- Minimum Net Monthly Income: Typically ₹30,000 – ₹50,000+ (varies significantly based on city, lender, and loan amount).
- Work Experience: Minimum 3 years of total work experience, with at least 1 year in the current organization.
Documentation (Borrower):
- KYC: Photo Identity Proof (PAN Card, Aadhaar Card, Passport), Address Proof (Aadhaar, Utility Bills), Passport-size photographs.
- Income Proof: Last 3-6 months’ Salary Slips, Last 2 years’ Form 16, Last 6-12 months’ Bank Account Statements (showing salary credits), Latest ITR.
- Employment Proof: Employment Certificate/Appointment Letter, Company ID card.
Eligibility Criteria:
- Age: 21 to 65 years.
- Business Vintage: Minimum 3-5 years of business continuity.
- Income: Consistent and adequate business income as per ITRs and financials.
Documentation (Borrower):
- KYC: Same as salaried individuals.
- Income Proof: Last 2-3 years’ ITRs with computation of income, Certified Financial Statements (P&L and Balance Sheet) for the last 2-3 years, Business Bank Account Statements for the last 6-12 months.
- Business Proof: Business Profile, Proof of Business Registration (Shop & Establishment Certificate, GST Registration, Partnership Deed, MoA/AoA), Professional Practice Certificate (for professionals).
Eligibility Criteria:
- Age: 21 to 60-65 years.
- Work Experience: Minimum 2 years of overseas employment/business.
- Co-Applicant: Often requires a Resident Indian co-applicant (direct close relative).
Documentation (Borrower):
- KYC: Photocopy of Passport & Visa, NRI status proof (OCI/PIO Card if applicable), Indian & International Address Proof.
- Income Proof: Salary Certificate (in English) or last 6 months’ Salary Slips, Last 6-12 months’ NRE/NRO Bank Account Statements (Indian) and overseas bank account statements.
- Employment Proof: Appointment Letter, Job Contract, Labour/ID card.
- Power of Attorney (PoA): If applying from abroad, a Power of Attorney attested by the Indian Consulate/Embassy in the resident country. If in India, a locally attested PoA.
Your 5-Step Path to Faster Loan Against Property Approval
Experience a swift and transparent application process with YesLoans:
Submit Your Requirements
Share your financial needs and property details.
Explore Personalized Offers
Review and compare the best LAP rates and terms from our extensive network of 100+ lenders.
Easy Document Upload
Securely upload all necessary KYC, income, and property documents online.
Dedicated Relationship Manager Support
Our expert will guide you through property valuation and verification.
Rapid Sanction & Disbursal
Receive quick loan approval and swift disbursal of funds to meet your financial goals.
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We do not charge any upfront fees.
Find out the best deal we can offer without it affecting your credit score.
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₹ 0Why Choose YesLoans for Your Loan Against Property?
- Competitive Rates: Access the lowest interest rates from 100+ All India lenders.
- Tailored Solutions: Personalized offers to match your financial needs and property value.
- Expert Guidance: Dedicated Relationship Managers for end-to-end support.
- Fast & Digital Process: Seamless AI powered online application and quick disbursal.
- Transparency: Clear terms, no hidden charges, no upfront fees.
- Extensive Network: Connect with 100+ trusted banks and NBFCs across India.
FAQ
Here are some key factors that help the bank determine how much loan it can fund:
- Property Value: The loan amount sanctioned by the bank is usually a percentage of the property’s value, commonly ranging from 50% to 75% of the property’s appraised value. The exact percentage can vary based on factors such as the location, type of property, market conditions, and the bank’s lending policies.
- Loan-to-Value (LTV) Ratio: It represents the proportion of the property’s value that can be borrowed as a loan.
- Repayment Capacity: The bank evaluates the borrower’s income, stability of income source, existing debts, and other financial obligations to assess their ability to repay the loan.
- Creditworthiness: A higher credit score indicates better creditworthiness and can positively impact the loan amount sanctioned.
There are some of the common types of properties that are generally accepted as collateral for LAP:
- Residential Property,
- Commercial Property,
- Industrial Property,
- Land or Plot
Some factors that lenders may consider include the location of the property, its market value, legal clearances, property title, and the property’s condition. Lenders may also assess the property’s potential for future appreciation and marketability.
Yes, Loan Against Property (LAP) can be offered as an overdraft facility by certain lenders. LAP overdraft facility works similarly to a regular overdraft facility, where the borrower is granted a revolving line of credit against their property.
Yes, it is possible to transfer your Loan Against Property (LAP) from one bank to another in India, a process commonly known as a LAP balance transfer. By transferring your LAP to another bank, you can avail yourself of a higher loan amount or more favorable terms and conditions.
Yes, it is possible to sell a property during the term of a loan in India, including a Loan Against Property (LAP).
You can get a Loan Against Property from Rs. 2 lakhs to Rs. 5 crore Some of the factors that banks consider when deciding a loan amount are:
- The property’s registration
- The property’s market value
- Your requirement and eligibility
- Your income and repayment capacity