What is a Property Loan?
A Property Loan generally refers to a Loan Against Property (LAP), which is a secured loan where you pledge your residential, commercial, or industrial property as collateral to borrow money. The funds can be used for business expansion, education, medical expenses, or personal needs, but not for speculative activities.
Loan amount: Usually up to 60–70% of the property’s market value
Tenure: 5 to 15 years
Lower interest rate compared to personal loans (since it’s secured)
Advantages of a Property Loan
High Loan Amount
Since it’s secured, lenders offer large amounts (up to several crores).
Lower Interest Rates
Interest rates are lower than unsecured loans like personal loans.
Flexible End-Use
Can be used for education, medical needs, business expansion, etc.
Long Repayment Tenure
Tenure up to 15 years makes EMIs affordable.
Ownership Remains with Borrower
You retain property ownership unless you default on the loan.
Quick Processing for Existing Customers
Especially if property documents are clear and pre-approved.
Eligibility Criteria
Eligibility varies by lender, but generally:
Criteria Requirement
Age 21–65 years (at loan maturity)
Employment Type Salaried, self-employed, business owners
Income Minimum as per lender norms
Property Ownership Clear title, no legal disputes
Credit Score Usually 700+
Property Type Residential, commercial, or industrial
Documents Required
For Salaried Individuals
Identity Proof: Aadhaar, PAN, Passport, Voter ID
Address Proof: Utility bill, Aadhaar, Passport
Income Proof:
Salary slips (last 3–6 months)
Form 16
Bank statements (last 6–12 months)
Property Documents:
Title deed
Approved building plan
No Encumbrance Certificate (NEC)
Photographs
For Self-Employed / Business Owners
All ID & address proofs as above
Business Proof:
Business registration certificate
GST registration
Financial Documents:
IT returns (last 2–3 years)
Audited Balance Sheet and P&L statement
Bank Statements: Last 6–12 months
Property Documents: Same as above.