Get high-value funding by mortgaging residential or commercial property. Lower interest rates, longer tenures, and flexible end-use — ideal for business expansion, education, or any large expense.
A Loan Against Property (LAP) is a secured loan where you pledge your residential, commercial, or industrial property as collateral to raise funds. Lenders sanction a percentage of the property's current market value — typically 50% to 70% — as the loan amount.
Because the loan is secured, interest rates are significantly lower than unsecured options like personal loans. Tenures can extend up to 15–20 years, making EMIs highly affordable. Funds can be used for any legitimate purpose — business expansion, children's education, medical emergencies, wedding expenses, or debt consolidation.
LAP is especially popular among business owners, self-employed professionals, and individuals who own property but need large liquidity without selling the asset. The property remains in your name, and you continue to enjoy its use or rental income while repaying the loan.
Leverage your property's value to access large funds at competitive rates, with flexible repayment options.
Borrow up to ₹5 crore or more, depending on property value and lender policies — significantly higher than unsecured loans.
Secured nature means rates starting as low as 8.5% p.a. — much cheaper than personal or business loans.
Tenures up to 15–20 years (180–240 months) keep EMIs affordable and improve cash flow management.
No restrictions on fund usage — business, personal, education, medical, or any other legitimate need.
You retain ownership and can continue living in or renting out the property during the loan tenure.
Timely repayment of a large secured loan demonstrates creditworthiness and boosts your CIBIL score.
Loan amount and rate depend on property type, location, income, and LTV ratio.
| Property Type / Profile | Rate Range (p.a.) | Max LTV |
|---|---|---|
| Residential – Salaried / Good CIBIL | 8.5% – 10.5% | 70% |
| Residential – Self-employed / Business | 9.5% – 11.5% | 65% |
| Commercial Property | 9.5% – 12% | 60% |
| Industrial Property | 10% – 13% | 55% |
| Land (Non-agricultural) | 10.5% – 14% | 50% |
Loan amount = Property value × LTV ratio. Higher LTV means larger loan but may attract slightly higher rates.
| Property Value (₹) | LTV 60% | LTV 70% | LTV 75%* |
|---|---|---|---|
| ₹1 Cr | ₹60 Lakhs | ₹70 Lakhs | ₹75 Lakhs |
| ₹2 Cr | ₹1.2 Cr | ₹1.4 Cr | ₹1.5 Cr |
| ₹5 Cr | ₹3 Cr | ₹3.5 Cr | ₹3.75 Cr |
| ₹10 Cr | ₹6 Cr | ₹7 Cr | ₹7.5 Cr |
*Up to 75% LTV possible for high-value residential properties with excellent credit profile. Actual LTV subject to lender policy.
Eligibility depends on property, income, age, and credit history. These are general guidelines.
How your credit score influences LAP terms
Tell us about your property type, location, and income profile
Lender conducts technical, legal, and valuation assessment
KYC, income proof, property papers, and other required docs
Loan sanctioned, agreement registered, funds transferred
Requirements vary by lender and property type. Confirm with our team for a customised list.
Model monthly instalments, total interest, and overall outflow based on loan amount, rate, and tenure.
Rates and terms vary. We compare across banks and NBFCs to find the best fit for your property and profile.
| Lender | Interest Rate | Max LTV | Max Amount | Max Tenure | Processing Fee | Best For |
|---|---|---|---|---|---|---|
| South India Loans | From 8.5% | 70% | ₹5Cr | 180 months | 0.5%–1% | Best Overall |
| SBI | 8.75% – 10.5% | 70% | ₹5Cr | 180 months | 0.35% | Lowest Fee |
| HDFC Bank | 8.7% – 11% | 65% | ₹3.5Cr | 180 months | Up to 1% | Quick Disbursal |
| ICICI Bank | 8.9% – 11.5% | 65% | ₹5Cr | 180 months | Up to 1% | High Value |
| Bajaj Finserv | 9.5% – 14% | 65% | ₹3.5Cr | 168 months | Up to 2% | Self-employed |
| Piramal Finance | 9.25% – 13% | 60% | ₹5Cr | 180 months | Up to 1.5% | Commercial Property |
ℹ️ Rates and terms are indicative. Final offer depends on property valuation, legal clearances, income, and credit profile. South India Loans helps you compare and apply across multiple lenders.
Get expert assistance in choosing the right lender, understanding LTV, and completing the legal and valuation process smoothly.