Property Loan: Unlock the Value of Your Property

A Property Loan, also known as a Loan Against Property (LAP), is a secured loan that allows individuals or businesses to leverage their property’s value to get funds. Whether you need money for business expansion, medical emergencies, education, debt consolidation, or personal needs, a Property Loan provides a high loan amount at lower interest rates compared to unsecured loans.

Advantages of a Property Loan

  1. High Loan Amount – Get up to 60-75% of your property’s market value as a loan.
  2. Lower Interest Rates – As a secured loan, interest rates are lower compared to personal or business loans.
  3. Flexible Loan Tenure – Repay the loan over up to 20 years, reducing monthly EMI burden.
  4. Multipurpose Usage – Use the funds for business expansion, education, medical needs, or any personal requirement.
  5. Property Ownership Retained – You continue to own and use your property while availing funds.
  6. No End-Use Restrictions – Unlike home loans, property loans can be used for any financial need.
  7. Balance Transfer Option – Transfer your existing loan to another lender for better interest rates.
  8. Tax Benefits – If used for business purposes, the interest paid on a property loan is tax-deductible under Section 37(1) of the Income Tax Act.
  9. Higher Loan-to-Value (LTV) Ratio – Get a higher percentage of your property’s value as a loan, depending on the type of property.

 Eligibility Criteria for a Property Loan

To qualify for a Property Loan, applicants must meet the following criteria:

🔹 Age: Salaried (21-60 years), Self-employed (21-65 years) at loan maturity.
🔹 Employment Status:

  • Salaried Individuals – Should have a stable job with at least 2-3 years of work experience.
  • Self-Employed Individuals – Should have a profitable business with stable income for at least 3 years.
    🔹 Property Ownership: The property should be registered in the applicant’s name and free from legal disputes.
    🔹 Credit Score: A CIBIL score of 700+ improves approval chances and gets lower interest rates.
    🔹 Loan Amount: Based on the property type, income, and repayment capacity.
    🔹 Eligible Property Types: Residential, commercial, and industrial properties can be used as collateral.

📄 Documents Required for a Property Loan

📌 Identity Proof: Aadhaar Card, PAN Card, Passport, or Voter ID.
📌 Address Proof: Utility Bills, Rental Agreement, or Passport.
📌 Income Proof:

  • For Salaried Applicants: Salary slips, Form 16, and last 6 months’ bank statements.
  • For Self-Employed Applicants: Profit & Loss statement, ITR for the last 2-3 years, and business registration proof.
    📌 Property Documents:
  • Sale Agreement, Property Title Deed, and Latest Property Tax Receipts.
  • Approved Building Plan and Encumbrance Certificate (showing no legal claims).
    📌 Employment Proof: Appointment Letter (for salaried) or Business Registration Certificate (for self-employed).
    📌 Bank Statements: Last 6-12 months’ bank statements for financial assessment.