What is a Property Loan?
A Property Loan, also known as Loan Against Property (LAP), is a secured loan where a borrower pledges a residential, commercial, or industrial property as collateral to obtain funds from a bank or financial institution. The loan amount is determined based on the market value of the property and the borrower’s repayment capacity. Property loans are commonly used for business expansion, working capital needs, education, medical expenses, or other long-term financial requirements.
Benefits of Property Loan
Higher Loan Amount: Avail up to 60–70% of the property’s market value.
Lower Interest Rates: More affordable compared to unsecured loans.
Longer Repayment Tenure: Flexible repayment options up to 15–20 years.
Multi-Purpose Usage: Funds can be used for business or personal needs.
Retain Property Ownership: Continue using the property while it is mortgaged.
Lower EMIs: Longer tenure helps in easy monthly repayments.
Tax Benefits: Interest paid may be eligible for tax benefits as per applicable laws.
Eligibility Criteria for Property Loan
Applicant must be an Indian citizen
Age: 25 to 65 years
Applicant Type: Salaried individuals, self-employed, professionals, business owners
Income Stability: Regular and verifiable income source
Credit Score: Preferably 650 or above
Property Type: Residential / Commercial / Industrial property with clear title
Ownership: Applicant must be the legal owner of the property
Documents Required for Property Loan
KYC Documents
PAN Card
Aadhaar Card
Passport / Driving License / Voter ID
Income Documents
For Salaried Individuals:
Salary slips (last 3–6 months)
Bank statements (last 6 months)
Form 16 / Income Tax Returns
For Self-Employed / Business Owners:
Bank statements (last 6–12 months)
Income Tax Returns (last 2–3 years)
Profit & Loss Statement and Balance Sheet
Property Documents
Sale Deed / Title Deed
Approved Building Plan
Encumbrance Certificate
Property Tax Receipts
Occupancy / Completion Certificate (if applicable)