A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral in exchange for funds. Banks and financial institutions in India offer LAP to salaried and self-employed individuals for business expansion, medical emergencies, education, home renovation, marriage, and more.
Unlike personal loans, LAP offers lower interest rates, longer repayment tenure, and higher loan amounts. If you are looking for affordable secured financing, Loan Against Property can be a smart choice. How Does a Loan Against Property Work?
When you apply for LAP:
-
You pledge your owned property as security.
-
The lender evaluates the market value of your property.
-
Based on eligibility, you receive 50% to 70% of the property value as loan.
-
You repay through monthly EMIs over a flexible tenure of up to 15 years.
Note: Property ownership remains with you during repayment. The lender only holds the rights to sell the property if you default.
Features of Loan Against Property
| Feature | Details |
|---|---|
| Loan Type | Secured |
| Loan Amount | ₹5 lakh to ₹5 crore (varies by lender) |
| Interest Rate | 8.50% – 15% per annum |
| Tenure | Up to 15 years |
| Property Type | Residential/Commercial |
| CIBIL Score | 650+ preferred |
| Processing Time | 4–7 working days |
Benefits of Loan Against Property
-
Lower interest rates compared to personal loans
-
High loan amount eligibility
-
Flexible repayment tenure
-
Continue using the property
-
No end-use restriction (loan can be used for business, education, medical bills, etc.)
-
Easier approval due to collateral security
Eligibility Criteria
Category Requirements Age 25 to 65 years Income Stable monthly income CIBIL Score 650+ preferred Property Must be owned and free from disputes Employment Salaried or self-employed Documents Required
For Salaried Individuals:
-
Aadhaar card / PAN card
-
Salary slips (last 3 months)
-
copyright (last 6 months)
-
Property documents
-
Address proof
-
Latest Form 16
For Self-Employed:
-
-
PAN Card & Aadhaar Card
-
ITR (last 2 years)
-
GST or business proof
-
copyright (last 6 months)
-
Property papers
| Lender | Interest Rate (p.a.) |
|---|---|
| HDFC Bank | 9.25% onwards |
| ICICI Bank | 9.50% onwards |
| SBI | 9.15% onwards |
| Axis Bank | 9.75% onwards |
| Kotak Mahindra Bank | 10.00% onwards |
| IDFC First Bank | 10.25% onwards |
✔️ Education abroad
✔️ Medical emergency
✔️ Debt consolidation
✔️ Home renovation
✔️ Wedding expenses Loan Against Property with Zepto Finance
At Zepto Finance, we help you get the lowest interest rate Loan Against Property quickly and securely. Whether you need funds for personal or business needs, our loan advisors guide you with fast approval, minimal paperwork, and a simple process.