Complete Loan Against Property (LAP) guide — calculator, eligibility, documents, interest, process and tips to get the best terms.
Estimate eligible loan amount based on property value, Loan-to-Value (LTV), interest rate and tenor. Use this to plan repayment and compare lenders.
Lenders verify property documents and conduct valuation; final sanctioned amount may differ based on location, marketability and legal clearances.
A Loan Against Property (LAP) is a secured credit facility wherein you pledge residential or commercial property as collateral to obtain finance. LAP is commonly used for business expansion, debt consolidation, home improvement, medical emergencies, or long-term personal needs. Because LAP is secured by property, interest rates are significantly lower than unsecured loans like personal loans, and lenders can offer larger ticket sizes and longer tenors.
LAP is ideal for borrowers who:
Loan amount is primarily a function of the property’s market value and the lender’s Loan-to-Value (LTV) policy. LTV typically ranges from 40% to 75% depending on property type (residential vs commercial), location, borrower profile and lender. Example: If property market value = ₹50 lakh and LTV = 60%, eligible loan ≈ ₹30 lakh. Lenders also consider outstanding title issues, encumbrances, and market liquidity before final sanction.
Interest rates on LAP are generally lower than unsecured credit and vary across banks and NBFCs. In 2025 typical rates might range between approximately 7% to 12% depending on lender, borrower credit profile, and whether rate is fixed or floating. Tenors can be long — up to 15–20 years for residential mortgages — which reduces monthly EMI but increases total interest cost. Choose tenor balancing monthly affordability and total cost.
Documentation is more extensive than small-ticket loans because legal verification of property is mandatory. Typical documents include:
Note: Lenders may ask for additional papers based on property type and locality; always verify the exact checklist with the chosen lender to avoid delays.
Lenders will conduct:
Most LAPs use standard EMI (annuity) calculations where EMI includes principal + interest. Some lenders allow interest-only periods or flexible repayment structures for business customers. Use the calculator above to estimate EMI based on sanctioned amount, interest rate and tenor. Remember: longer tenor reduces EMI but increases total interest paid.
A: Yes. Commercial property LAPs are common but lenders may offer lower LTV or higher rates based on marketability and rental income stability.
A: Typically 7–21 days depending on document readiness, valuation, and legal checks. Complex title cases take longer.
A: Many lenders allow prepayment; some charge a foreclosure fee. Check terms and note that fixed-rate loans sometimes have penalties, while floating-rate loans may allow foreclosure without penalty.
A: LAP is usually disbursed in a single tranche to the borrower’s account after mortgage registration. For construction finance or staged requirements, lenders may disburse in stages against completion certificates.
Use the Loan Against Property calculator above to simulate loan amounts and EMIs — test different LTVs, tenors and interest rates to choose a comfortable repayment plan.
This Loan Against Property (LAP) guide and calculator are for educational and planning purposes only. Final eligibility, loan amount, interest rate and terms are determined by the lender after legal and technical verification of the property, borrower profile and documentation. All Finance Store is not responsible for lending decisions or outcomes. For personalised advice and exact pricing, consult the chosen bank or NBFC and review the sanction letter carefully before signing.