Loan Against Property

Loan Against Property

Loan Against Property, LAP, is the type of loan which is lend to the applicant by keeping the collateral of personal residential property. It is also known as the secured loan where the lent property by the owner acts as the security for the loan. The amount which is to be lent depends on the value of the property collate rated by the applicant. The purpose of the loan can be anything such as a trip, marriage, expanding the business, etc.

For availing the LAP loan, the applicant must own one of the following properties types:

  • Applicant owned residential/commercial property
  • Rented but owned residential property
  • Owned plot
  • Rented but owned commercial property


There are different eligibility criteria for individuals who want to avail the LAP loan such as:

Working applicants:

  • The person must be working in a renowned corporate or government sector.
  • The age of the applicant must be a minimum of 24 years of age at the time of applying for the loan.

Entrepreneurs/self-employed Applicants

  • The person must be filing the income tax returns
  • The age of the applicant must be a minimum of 24 years of age at the time of applying for the loan and 65 years of age at the maturity time.

Lease Rental Discounting (LRD)

  • The person who is going for the lease must have a company authorized as per the 1956 Companies Act.
  • Funding will be limited for only the ready commercial property which will be 85% of the net present value of future rentals or 50% of the value of the property, whichever is less.


Some of the documents which are required to get eligible for Loan against Property are:

  • Property Ownership Documents
  • Document proof for KYC such as Adhaar, PAN card, identity proof, Passport, etc.
  • Document proof for the running business or self-employment with an experience of minimum of 5 years.
  • 6 months prior bank statement proof