Property Loan: Unlock the Value of Your Property

A Property Loan, also known as a Loan Against Property (LAP), is a secured loan where you can leverage your residential, commercial, or industrial property to get funds for personal or business needs. This loan offers high amounts at competitive interest rates, making it an ideal choice for expanding a business, funding education, medical expenses, or other financial goals.

Benefits of a Property Loan

  1. High Loan Amount – Avail up to 60-70% of the property’s market value as a loan.
  2. Low Interest Rates – Compared to personal or business loans, property loans offer lower interest rates.
  3. Flexible Repayment Tenure – Repay over a period of 5 to 15 years, depending on the lender’s policy.
  4. Multi-Purpose Usage – Use funds for business expansion, education, medical emergencies, debt consolidation, or any financial requirement.
  5. Minimal Documentation – Hassle-free loan approval with simple paperwork.
  6. Retain Property Ownership – You continue to own and use your property while availing of the loan.
  7. Balance Transfer Facility – Transfer your existing loan to another lender for lower interest rates.
  8. Tax Benefits – If used for business purposes, the interest paid may be eligible for tax deductions under the Income Tax Act.

Eligibility Criteria for a Property Loan

The eligibility criteria vary by lender, but common requirements include:

For Salaried Individuals

✔ Age: 21 – 60 years
✔ Employment: Minimum 2-3 years of stable job history
✔ Income: Minimum monthly salary as per lender’s requirements
✔ Credit Score: 700+ recommended for better loan terms

For Self-Employed Individuals & Business Owners

✔ Age: 25 – 65 years
✔ Business Stability: Minimum 3 years of profitable business operations
✔ Financial Strength: Sufficient income and revenue proof
✔ Credit Score: Strong repayment history for higher approval chances

For Companies & Firms

✔ Business Vintage: Minimum 3 years of operation
✔ Financial Health: Consistent profit and revenue records
✔ Property Ownership: Property should be in the company’s or promoter’s name

Documents Required for a Property Loan

1. KYC Documents (Identity & Address Proof)

  • Aadhaar Card / PAN Card / Passport / Voter ID
  • Utility Bill / Rental Agreement / Passport for Address Proof

2. Income & Financial Documents

✔ For Salaried Individuals:

  • Last 3 months’ salary slips
  • Last 6 months’ bank statements
  • Form 16 / Income Tax Returns (ITR) for the last 2 years

✔ For Self-Employed Individuals & Business Owners:

  • Last 2-3 years’ ITR with audited financial statements
  • Last 12 months’ business and personal bank statements
  • Business Registration Certificate / GST Registration

3. Property Documents

  • Title Deed of the property (Ownership Proof)
  • Approved Building Plan & Property Tax Receipts
  • Encumbrance Certificate (No legal disputes on the property)

4. Loan-Specific Documents

  • Duly filled Loan Application Form
  • Passport-size Photographs
  • Existing Loan Statements (if any)