“Property value isn’t the limit—discover how to get LAP beyond its worth?”
CA Naresh Bansal
(CEO, NKB Kredit Group)
Loan Against Property
A loan against property (LAP), or mortgage loan, is a secured loan from a bank or financial institution against a property that is yours. The property, whether residential, commercial, or industrial, is kept as security and is with the lender until the loan is repaid in full.
One of the major advantages of LAP is that it provides a larger amount of loan with a relatively lesser interest rate beginning at about 7% per annum. The lender advances loans up to 50% to 70% of the market price of the property. But as per your firm’s financials and your personal business credit rating, the loan may be taken up to a limit of 200% of the prevailing market price of the property. This renders LAP a very desirable financing option for entrepreneurs and business owners who have good finances.
The repayment period is also flexible, spanning a period of 20 years, and the loan is repaid in Equated Monthly Installments (EMIs). Similar to an unsecured personal loan, LAP funds can be utilized for various personal or business purposes—apart from high-risk enterprises.
If you’re curious about how to obtain a loan against property, how the process of mortgaging works, or simply want to know more about LAP, this blog will walk you through all the basics.
Advantage of LAP (Loan Against Property)
Flexible End Use
Similar to personal loan, loan against property can be utilized to fund personal and business requirements apart from risky pursuits
Lower rates of interest
The interest rates charged on secured loans are less than those on unsecured loans. This reduces the cost of loan against property and makes it a more attractive alternative compared to personal loan
Balance Transfer Facility
Mortgage loans also provide a balance transfer facility, where you can shift your current mortgage loan to some other bank/loan company at a lesser interest rate or improved loan terms.
Increased loan amount
It is secured loan since it is advanced against property and therefore you can easily avail larger loan amount
Simple tenure
Loan against property tenure is typically up to 20 years, providing you with low EMIs and simple repayment.
Eligibility For Loan Against Property
To be qualified for a Loan against Property, you need to have the collateral property in India. Your age should be 25 to 65 years and you should have a regular income from employment or a business with a minimum of Rs 25,000 per month. After fulfilling all these conditions then you can easily apply for loan against property. In this case, the lenders will verify all these things of yours and if you meet all these things then you will be qualified to obtain the loan against property.
Documents required for Loan Against Property
At the time of applying for the mortgage loan, the bank/loans institution will request you to provide some documents in order to evaluate your paying capacity and all the details which you have submitted are accurate. These documents can differ from bank to bank/loan institution. The documents can differ based on the loan scheme you have applied for, resident type you are and employment type you have. But the documents needed to apply for Loan Against Property are – Application form filled in proper order, Passport size photo, Your identification proof (Passport copy/Voter ID card/Driving license/PAN card), Age Proof of residence (PAN Card/Passport/Any other Statutory certificate) and Proof of address (Ration Card, Telephone Bill, Electricity Bill, Rental Agreement, Passport Copy, Bank Passbook or Statement, Driving License, Authority), Bank Statement (Last 6 Months Bank Statement/Bank Passbook) or Last 6 Months, etc.
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Our Process
A loan against property (LAP) is a loan taken against mortgaging your residential, commercial, or industrial property as collateral. In India, it’s a wonderful method of fulfilling long-term financial requirements with lower interest rates from 7% per annum. Generally, you can get 50–70% of the value of your property, but depending upon your business background and financials, it may be up to 200% of the property’s value. We assist you in identifying the appropriate lender, looking into alternatives such as MSME schemes, and even linking you with banks, NBFCs, or investors for secured or unsecured loans. From application to delivery—paperwork, approvals, and post-loan assistance—we are with you every step of the way to ensure the process is seamless and hassle-free.
Testimonials
Hear what our satisfied clients have to say about their experiences with us.
Pawan Badsiwal | Proprietor @ Satvik Polymers
Mr. Bansal is highly supportive to understand a business & its needs. I have approached him twice during last two years & thanks to his execution capabilities & assessment he advised me pin-pointedly to plan the expansions & after that dotted execution has made me confident to move ahead my business expansion. I highly recommend an SME business to consult Mr. Bansal for his impartial advice on funding. I can vouch for his transparent, straight & honest advice which will help in focused working.
Vinay Modi | Proprietor@ Modi Scooter House
We have approached with susceptible thoughts about fund raising because our quantum of funds was high & unable to offer security for it but when Mr. Bansal assure us about fund raising, we first doubted on his statements but thanks to his execution skills we achieved the desired funding in record timeframe.
Paramjit Singh |Director@ Ohsan Form Tech (P) Ltd
Presentation of good feature of a business & hard bargain on the cost is his one of the best skill to assess. May God bless him more to understand & deliver good work.
Vishal Marwah | Co-Founder@Indelog Solutions (P) Ltd
We came across Mr.Naresh Bansal in the year 2017 and have been availing his services till date in raising business funding through multiple NBFCs/MNC banking institutions and have been extremely satisfied by his approach towards achieving the objectives detailed to him. He bears a good moral character and is highly motivated and focused in his approach.
A mild mannered gentleman who has a heart of a tiger within.
Wish him all the very best ALWAYS