Loan Against Property

What Is A Loan Against Property?

A loan against property, or LAP, is a loan secured by a property you already own and continue to occupy or let. Because the lender holds a mortgage, the rate sits far below unsecured borrowing and the tenure runs into years rather than months — which is why it is usually the cheapest large sum a business owner can raise.

The property is not sold and its use does not change. Project Funding India places LAP cases with banks and NBFCs, and structures the facility around what the money is for: a term loan for a one-time need, an overdraft where the requirement keeps revolving.

Key Features & Benefits

• Residential, commercial, industrial and rented property all considered
• Term loan or overdraft, depending on how the money will be used
• Long tenure keeps the instalment within a business's cash flow
• Balance transfer of an existing property loan, usually with a top-up
• The property stays yours and stays in use throughout

Eligibility Criteria

• Clear, marketable title in the applicant's or co-applicant's name
• Salaried applicants: normally three years and above in employment
• Self-employed and businesses: a stable operating record, usually five years
• Age band commonly 18 to 70 for individuals, 25 to 65 for business owners
• Satisfactory CIBIL record and clean repayment history

End Use Of Funds

• Working capital and business expansion
• Consolidating or refinancing costlier borrowing
• Acquiring plant, premises or another property
• Any legitimate personal or business requirement other than speculation