Tenure for your Loan Against Property

Choosing a tenure for your loan against property requires careful consideration. The financial responsibility and obligation are generally quite significant as the loan amount is usually substantial. It would be best if you borrowed cost-effectively and wisely to avoid hassles. 

The tenure for your loan against property is the window of repayment within which you are required to repay your home loan in the form of EMIs. Looking at the substantial sum in question, some lenders offer you the option to repay the loan within up to 30 years. 

How to Get Loan on Property?

There are a few eligibility criteria that you need to follow and some documents that you need to submit. 


Eligibility for loan against property in the case of salaried applicants: 

  • Citizens should be residing in India.
  • Should be between 28-58 years old
  • Working professionals at MNCs, private or public companies, with a minimum of three years of work experience. 

Eligibility for loan against property in the case of self-employed individuals: 

  • Citizens should be residing in India.
  • Should be between 25-70 years old
  • Should provide a steady income source

Documents Required

  • Recent salary slips (only for salaried applicants)
  • Previous three months Bank account statements
  • Aadhar and PAN card
  • Address proof
  • Copy of to-be mortgaged property’s documents
  • IT Returns (only for salaried applicants)

Is Longer Tenure Loan Better?

Many people ask the question: Is longer tenure loan better? Let’s see the answer. 

A longer tenure, such as the maximum tenure, allows you to have the lowest EMI costs. For instance, if you take a loan for a long time, you will have a lot of time to repay it. However, it would mean you would be paying interest for that long. It depends on whether you want to pay less interest and take a loan for a shorter duration or pay more interest and take a loan for a more extended period. In short, the longer the loan tenure, the more expensive it will be for you. 

What is Loan Against Property?

A LAP or loan against property is a form of a secured loan that you can sanction against an asset you pledge as collateral. The sanction against this pledge is usually high, and the tenor may span decades. 

Also, the loan against property interest rates is less than an unsecured loan. 


You Can Get a Huge Sanction

You pledge property as collateral when opting for a loan against property. The general sanction amount is 70-75% of the property’s current market value. It depends on whether the property is commercial or residential many times. It also depends on whether the property is rented, vacant, or occupied. 

Low-Interest Rate

Due to this loan type being a secured loan, a lender’s risk reduces as the lender can recover the losses by claiming your property. It is why lenders offer lower interest rates on such a loan type. 

Repay Over a Long Time

In some cases, you can pay the loan amount within up to 18 years. It depends on every lender. It is a key benefit that the tenure for loan against property is quite high. You can pay your monthly EMI by tailoring it according to your needs. 

Tax Benefits

An excellent feature of a loan against property is that you get tax benefits on interest payments. However, it only applies to sanctions that are used for specific purposes. 

Section 37 (1) of the Income Tax Axt, 1961, can get you a deduction if you use the loan for business purposes. 

You could get an interest rate deduction if you took a loan to purchase a property under Section 24 (B) of the Act. However, remember that the maximum deduction amount is Rs. 2 lac. 

You cannot claim any benefits if you use the loan amount for personal expenses. Weddings, vacations, travel, education, etc. come under personal expenses. 

Loan against property interest rates depend on an individual lender and can vary from lender to lender. Check out a few different lenders and see which terms and conditions suit you the best before taking a loan against your property. 

Factors To Consider

  • 1. Your age
  • 2. Your income
  • 3. Loan Amount
  • 4. EMI and rate of interest


Choosing a tenure for your loan against property might be daunting, but you need to do your best and undertake research to keep your costs to a minimum. There are various factors to consider, and you must be mindful of everything that goes into it. It does not have to be such a daunting task with our help.

Pin It on Pinterest