Official LAP process & sanction info.
Estimate realistic market value.
Ensure clean title before pledging property.
Price trends & locality comparisons.
Model tenure vs EMI impact.
Compare LAP vs personal loan for cost efficiency.
Understand GST/Stamp duty implications on mortgage docs.
Arrange notarisation & registration of deeds.
Protect collateral during tenure.
Auto reminders to keep loan in good standing.
Loan Against Property is a secured loan where the bank lends against residential/commercial property. LAP is suitable for large needs — business expansion, debt consolidation, higher education funding — where unsecured options either not available or too costly.
Lenders get independent valuation and offer an LTV (loan to value) percentage. Higher marketability and clean title increase LTV. Compare net proceeds after valuation to project needs.
Submit property documents, title deed, valuation, income proofs and KYC. Legal verification can take time; plan for 2–4 weeks for full processing depending on region and paperwork completeness.
LAP rates are lower than unsecured personal loans; tenor can be longer (up to 15 years sometimes), making monthly outflow manageable. But remember longer tenor = higher total interest.
Use LAP wisely for productive uses (business, consolidation). Maintain insurance on property and avoid using LAP for speculative spending without clear cashflows to service EMIs.