Loan Against Property


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Loan Against Property?


'Loan Against Property', is also known as mortgage loan. This is one of the types of a secured loan as collateral is involved. This means if you need this loan, you will have to hold your property as mortgage with the bank. Any property whether it is commercial or residential, can be used in order to get a loan against property. The main highlight of the loan against property is that you can get 40-65%* of the property's value as the loan amount. Hence if you happen to have more than one property under your name, you can keep the costlier property as collateral. This will help you get a higher loan amount. The lender will evaluate your property and finalize the market value for it. On the basis of that value, you will get the loan amount.

For what purposes you can use Loan Against Property funds?


  • Customers need a loan for various reasons. You can get a loan against property for any of the below mentioned reasons:
  • For funding and expanding your business potential.
  • To purchase new property/land by mortgaging existing property
  • For marriage
  • To fund emergency medical treatments
  • To fund higher studies
  • To fund a vacation
  • For home renovation or expansion

What are the differences between Loan Against Property and Personal Loan?


A loan against property has often been confused with personal loans. The reason for this is because that they happen to have features which are distinctly similar to each other. But this is not true. Thus, in order to clear all the confusion between these two loan products, we have created a table below. This table will explain the main differences and help you understand how different they indeed are.

  • Personal Loan
  • Personal loan is a type of unsecured loan.
  • A borrower can take a personal loan for personal use without any security or guarantor.
  • Rate of interest for personal loans is higher.
  • A borrower has to pay higher EMIs.
  • In order to get a personal loan, the borrower's income defines the value
    of sanctioned loan amount.
  • The repayment tenure for personal loan rages between 12-72 months (1-6 years).
  • Loan Against Property
  • Loan against property is a type of secured loan.
  • A borrower has to mortgage the residential or commercial property for loan against property.
  • Rate of interest for loan against property is lower.
  • A borrower pays cheaper EMIs.
  • The approved loan amount for loan against property depends on the borrower's income details as well as value of the property which is being kept as mortgage.
  • The repayment tenure for loan against property goes maximum to 180 months (15 years).

What are the features of Loan Against Property?


  • A borrower has to mortgage their residential or commercial property while opting for a loan against property.
  • You can get a loan against property by keeping residential as well as commercial properties as mortgage.
  • The interest rate on a mortgage loan is decided considering various aspects of the applicant's profile like their monthly salary, income details of self employed individuals or businessmen, amount taken as loan etc. As this is a type of secured loan, banks and NBFC's offer lower rate of interest for a mortgage loan.
  • This is a long tenure loan as the repayment period can go up to a period of 15 years. Banks and NBFCs offer higher loan amount for longer tenure with exciting interest rates as compared to other loan plans.
  • The borrower is also supposed to pay all the hidden and extra charges such as processing fees and administrative fees. The borrower also has to pay the Bank/NBFC for property valuation and its processing fees. Many banks ask to pay 1% of the mortgage loan amount sanctioned.
  • The process of obtaining a loan against property is very quick and hassle free. Some banks approve the mortgage loan as quick as within three days.
  • Mortgage loan proves to be the best way for debt consolidation. That means you can pay off multiple debts by bringing them under a singular debt.
  • You can use your mortgaged property while repaying the LAP unlike gold where the gold ornaments remain with the banks or NBFCs and you don't get them back until the loan is repaid in full.
  • If the property is owned by partners or directors of a company, then a mortgage loan can be taken in the name of that firm.
  • Borrower can avail loans from 5 lakh onwards against property, if they apply for LAPs. The minimum amount Rs. 10-15 lakh.

What are the Eligibility Criteria to avail a Loan Against Property?


The borrower needs to present the loan against property documents required in order to get a loan. Banks will offer loans to borrowers who fulfill the loan against property eligibility. The eligibility criteria changes from bank to bank and the profile of the borrower. But there are some commonalities which you have to follow to get a loan against property from any bank. The common and generic factors in a mortgage loan process are listed below:

  • Banks give loan against property by dividing their customer's profession and their income history. The common and generic factors are listed below:
  • The borrower has to be an Indian citizen.
  • Professional stability and savings history of the borrower also play a major role in approval of a loan against property.
  • The borrower should have a good credit history at his/her disposal with proven track record of timely loan EMI and credit card bill repayment without any default.
  • Steady and healthy relationship with the bank will also help you to get the mortgage loan against property quickly and you might get exempted from paying the hidden charges and processing fees.
  • The loan against property eligibility is also decided on the basis of your market value of the mortgaged property.
  • The property should currently exist and should be under the applicant's name. The mortgage loan can be taken as co-applicants if the property is registered under multiple names.

The eligibly criteria for loan against property also changes based on applicant's profession. The details of the same are given below:

  • Salaried Applicant
  • You must be a permanent employee with either a company or the government.
  • You should also be an employee with government or existing company for a minimum period of 3 months.
  • A salaried applicant must be over 24 years at least in order to avail a loan against property.
  • You should currently be employed with your existing organization.
  • You should maintain a good CIBIL score before applying for this loan.
  • Professional Applicant/ Self-Employed Applicant
  • This category is further divided into two:

    Self-Employed Professional: These can be Architects, Doctors, Chartered accountants and many more.

    Self-Employed Non-Professional: They can be Commission agents, Traders, Contractors and many more.
  • In order to get a Loan against property transfer without a top up for professional applicants, they must be at least 25 years old and this can be extended to a maximum of 65 years.
  • • You must be involved in the existing business for few years (this number is defined by bank and will not necessarily be the same).
  • You must also be a regular in filing income tax returns regularly.
  • The property has to be eligible in order to be kept as collateral in the bank or NBFCs. The loan against property eligibility criteria are given below:
  • The property which will be kept as collateral should not be involved in any legal tangles.
  • The property should have clear titles registered in the name of the applicant.
  • Generally, the market value of the given property should be higher as the loan amount you'll get will totally depend on the current value of property.
  • The property should not be kept as a mortgage with any other financial institution while applying for loan against property.

What are the Documents Required to avail a Loan Against Property?


The list of documents for availing loan against property changes whether you're a salaried applicant or a self-employed professional/ businessman. The mortgage loan process can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria. The list of required documents differs from bank to bank. But we have given a generic list of required documents below:

No income proof needed for approval.*

  • Documents Required for Salaried Applicant:
  • You will need to furnish a fully filled and signed application form for a loan against property.
  • The banks will mention the number of Passport-sized photographs.
  • Furnish Identity proof in the form of - Aadhar card, Pan card ,Passport, Driving License, Voter ID card, employee identity card (in case of government employees).
  • Please keep a cheque ready which will cover administrative costs/processing fees that will be incurred by the bank in processing this loan application.
  • Keep these Address Proofs in handy - Rent Agreements, Bank statements, Ration card, Passport, Driving License, Water/Telephone/credit card bill/ Electricity or Property tax.
  • You will also need to arrange for the Age Proofs via - Birth certificate, Secondary school leaving certificate (class 10), Passport, pension payment order or receipt of LIC policy.
  • Apart from all this, please arrange for Salary slips of the past 3 months from loan application date.
  • Please attaché the Form-16 which will be issued to you by your current employer.
  • Get copies of your Bank statements since the past 6 months right from application date towards the loan.
  • Please get a copy of all existing loans and their details
  • You will have to furnish Property papers with CC and OC.
  • Documents Required for Self-Employed Businesspersons:
  • You will need to submit a neatly signed application form to get a loan against property.
  • The number of Passport-size photographs will be mentioned by the bank as per their form requirements.
  • Kindly arrange for the Identity and signature proof via - Aadhar card, Pan card, Driving License, Voter ID card, Passport etc.
  • Please arrange for the Address Proof in the form of- Rent Agreements, Voter ID card, Bank statements, Ration card, Credit card/ electricity/telephone/water/ bill or Property tax.
  • You can arrange for these documents to show Age Proof - Pension payment order or receipt of LIC policy, Secondary school leaving certificate (class 10), birth certificate, Proof of educational qualification which includes certificates, degrees, diplomas, and other academic credentials.
  • For those with a Business, they can show proof by furnishing the registration of business.
  • Arrange for Copies of Income tax returns or Assessment Orders since the last 3 years.
  • Also arrange for copies of challans which will prove that you have paid the Advance Income Tax.
  • In case you have previous loan history, kindly arrange for copies of all those existing loans and the details.
  • Furnish copies of Bank statements since the past 6 months.
  • Finally, arrange for OC and CC of Property papers.

What are the Interest Rates for Loan Against Property?


The borrower has an option to choose for two types of loan against property interest rate while applying i.e. Fixed Interest Rate and Adjustable Interest Rate. If you opt for fixed interest rate, the mortgage loan interest rates stays fixed throughout the loan tenure. The fixed interest rate changes from bank to bank but it's always between 8.50% - 12%* per annum. If you opt for adjustable mortgage loan interest rates, the interest rate does not stay fixed or static. The mortgage loan interest rates changes from time to time as per prevailing market conditions. This type of mortgage loan interest rates is beneficial for those who want to keep the loan for a short duration.

Why Choose Ruloans To Apply For Loan Against Property?


Ruloans is India's fastest growing financial distributors. With our presence all over India, you can apply for a loan against property in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune and many more. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for loan against property with Ruloans' latest online application process. You can choose from a plethora of banks and NBFCs on our website for your loan. We help you borrow right.

Hassle free process

We have developed an efficient, smooth and easy process for our customers to get a loan against property. Our easy to use online procedure allows customers to apply documents quickly. Our highly proficient Loan Calculator also guides the customers to embark on a hassle free process.

Benefits of applying with us

We value our customers and always look to offer them benefits of our expertise. Applying for a mortgage property with us gives you a chance to avail the best offers and deals from our partnered banks and NBFCs.

Compare your loan options

By using Loan Against Property Calculator you can compare loan against property interest rate, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your loan as per your budget

Free expert guidance and advice

Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging any fees.

Privacy policy

We, at Ruloans understand the value of your documents and keeping them safe and private. Your mortgage loan applications are processed electronically with complete privacy and transparency.

How to Apply For a Loan Against Property on Ruloans?


  • Applying for a loan against property/mortgage loan on Ruloans involves few easy steps:
  • Step 1: Go to the 'LAP' menu on our website and click on strong 'New loan against property' option and click on 'Apply Now' box.
  • Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your loan against property eligibility with its highly efficient algorithm.
  • Step 3: On the third step of the mortgage loan process, our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
  • Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website. This will help you fulfill your loan against property eligibility.
  • Step 5: In the last step of the mortgage loan process, your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

Frequently Ask Questions


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Submit the income documents only for disbursement of loan amount once approved. *