A Loan Against Property (LAP) is one of the most versatile funding options available today. Whether it’s personal or professional goals, this secured loan helps you manage big expenses without straining your savings.
Overview
Unlock the Value of Your Property with a Loan Against Property
A Loan Against Property (LAP) is a smart financial tool that lets you leverage your residential, commercial, or land assets by pledging them as collateral. With Money Mentor, you can access a substantial loan amount—up to a specific percentage of your property’s current value—at competitive interest rates and low processing fees. Even better? You can use the funds for any purpose—from education and business growth to home upgrades or even that long-awaited vacation.
Choosing the right lender can be confusing, with so many banks and NBFCs offering different terms. That’s where Money Mentor comes in. We simplify the process by helping you compare offers, find the best loan plan, and handle everything from document collection to final disbursal. Whether it’s a residential flat, office space, or open plot, we’re with you every step of the way.
Smart Ways to Use a Loan Against Property
Eligibility Criteria
A Loan Against Property (LAP) is accessible to a wide range of applicants including salaried individuals, government employees, and self-employed professionals. While eligibility norms may vary from one lender to another, here are some common criteria you typically need to meet:
Salaried, self-employed, or working professional
Age between 21 and 60 years
Minimum 3 months of work or business experience
Minimum net monthly income of ₹25,000
Documentation Requirements
To apply for a Loan Against Property, you need to submit the following documents:
- Photo Identity Proof: PAN Card, Aadhaar Card, Voter ID, Driving Licence, Passport.
- Address Proof: Title Deeds with complete chain, approval plans (if any), latest property tax return, latest maintenance and electricity bills, society registration certificate, No Encumbrance Certificate, commencement and occupation certificates.
- Income Proof: Last 3 months' salary slips, 6 months' bank statements, Form 16 (salaried), last 2 years’ ITR (self-employed).
- Employment Proof: 3+ years business continuity proof (self-employed), 1-year current and savings account statement, appointment letter (if employed < 6 months), 6 months’ loan repayment bank statements, passport-size photos of applicant and co-applicant (if any).
Application Process
Personal Loans Lowest Interest Rates
|
Bank Name
|
Minimum Interest Rate (%)
|
Loan Amount
|
Loan Tenure
|
Minimum Processing Fees
|
|---|---|---|---|---|
|
IndusInd Bank
|
10.25%
|
₹1 Lakh - ₹50 Lakhs
|
1 - 5 Years
|
1%
|
|
HDFC Bank
|
10.35%
|
₹1 Lakh - ₹99 Lakhs
|
₹5899/-
|
|
|
HDFC Bank
|
10.35%
|
₹1 Lakh - ₹99 Lakhs
|
₹5899/-
|
Understanding loan against property Processing Fees
A loan against property typically comes with a one-time processing fee, ranging from 0.5% to 2% of the total loan amount, charged during the application process.
This fee covers the lender’s administrative and verification costs and is usually deducted from the sanctioned loan amount before disbursal.
At Money Mentor, we help you compare offers from multiple lenders so you can choose a loan with the lowest processing fee and the best terms.
Loan Against Property Balance Transfer
Looking to lower your EMIs or save on interest payments? A Loan Against Property Balance Transfer lets you shift your existing loan to a new lender offering better interest rates and repayment terms. This move can help reduce your overall debt burden, especially if done during the early years of your loan when the interest outgo is highest.
While a balance transfer requires property collateral and may include additional charges like processing and foreclosure fees, the long-term savings often outweigh the costs.
At Money Mentor, we guide you step-by-step—from evaluating if a balance transfer makes sense for you to selecting the right lender with lower rates and flexible repayment options.
Documents Required for a Balance Transfer
Planning to transfer your existing loan against property to another lender? Keep the following documents ready for a smooth process:
- Latest salary slips
- Bank account statements for the last 3 months
- PAN Card
- Identity proof (Aadhaar, Passport, Voter ID, etc.)
- Address proof (Utility bill, Aadhaar, Passport, etc.)
- Property title documents
- Loan sanction letter and repayment schedule of the existing loan
Eligibility Criteria Of Loan Against Property
Most resident Indians can apply for a loan against property, provided they meet certain basic requirements. Here’s what lenders usually look for:
- Applicant must be either a salaried professional or a self-employed individual
- Age should be between 21 and 60 years
- Minimum 2 years of work experience (for salaried individuals)
- Minimum 3 years of business continuity (for self-employed)
- Minimum annual income of ₹3 lakhs, regardless of profession