Loan Against Property

LAP-transfer-without-top-up

Check Your Eligibility

What is Loan Against Property?


'Loan Against Property', also known as LAPs is one of the variants of personal loan. This is a type of secured loan which comes handy in times of immediate financial needs. As per the name, the borrower can apply for loan from banks or NBFCs by giving their property as collateral. The type of property can be residential or commercial which is in current use. A borrower can keep one or more properties as collateral which belongs to him or her. Banks or NBFCs evaluate the current value of the particular property and give the loan amounting 40% - 60% of the land value. Even though your property is kept as a mortgage to the financial institution, you are allowed to live in or use the property as you desire.

For what purposes you can use Loan Against Property funds?


  • Various consumers need a loan for various reasons. You can get a loan against property for any of the below mentioned reasons:
  • For funding business and expanding your business
  • 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?


People often confuse between loan against property and personal loans because some of their similar features. They end up considering them same. But there are many fundamental differences between loan against property and personal loans. You can analyze them in the below table and make the right decision to choose the perfect loan suitable to your budget and needs.

  • 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?


  • Loan against property is a type of secured loan. A borrower has to mortgage the residential or commercial property for loan against property.
  • You can get loan against property by keeping residential as well as commercial properties as mortgage.
  • The interest rates on this loan are decided considering various aspects of applicant's profile. Like applicant's monthly salary, income details of self employees or businessmen, amount taken as loan etc. As this is a type of secured loan, banks and NBFC's offer lower rate of interest.
  • This is a long tenure loan as the repayment period is as long as 15 years. Banks and NBFCs offer higher loan amount for longer tenure with enchanting interest rates as compared to other loan plans.
  • The borrower is also supposed to pay all the hidden and extra charges such as processing fee and administrative fee. The borrower also has to pay the bank for property valuation and its processing fee. Many banks ask to pay 1% of loan amount sanctioned.
  • The process of obtaining loan against property is very quick and hassle free. Some banks approve the loan as quick as within three days.
  • Mortgage loans prove to be the best way to debt consolidation. That mean you can pay of your multiple debts by bringing them under a singular debt.
  • You can use your collateral property while repaying the LAPs, unlike gold where the gold ornaments remain with the banks or NBFCs and you don't get them back until the loan is paid in full.
  • If the property is owned by partners or directors of a company, it 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?


Banks offer loan against property to borrowers who fulfill their designed 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 or acquire to get a loan against property from any bank.

  • 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 the 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.
  • Steady and healthy relationship with bank also help you to get the loan quicker and you might get exempted from the hidden charges and processing fee.
  • The eligibility is also decided on the value of your mortgaged property.
  • The property should currently exist and should be in applicant's name. The 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
  • The applicant should be a permanent employee with the government or a reputed company.
  • The applicant should be an employee with the existing company or government for minimum 3 months.
  • The minimum age to avail LAP transfer without top up for salaried applicant is around 24 to 25 years.
  • The applicant should currently be employed with existing organization.
  • The applicant should also have a good CIBIL score.
  • Professional Applicant/ Self-Employed Applicant
  • This category is further divided into two:

    Self-Employed Professional: Doctor, architect, chartered accountant, etc.

    Self-Employed Non-Professional: Trader, commission agent, contractor etc.
  • The minimum age to avail LAP transfer without top up for professional applicant is 25 years and the maximum age has to be 65 years.
  • The applicant should be involved in his/her business for 3 years.
  • The applicant should be filing income tax returns regularly.
  • The property which is being mortgaged also has to be eligible to be kept as collateral in the bank or NBFCs. The 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.
  • The market value of the given property should be higher as the loan amount you'll get will 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.

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 process of getting a loan against property 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:

  • Documents Required for Salaried Applicant:
  • Neatly signed and filled loan against property application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • Salary slips of last 3 months from application date.
  • Form-16 issued by current employer.
  • Bank statements of last 6 months from application date.
  • Copy of details of all existing loans.
  • A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
  • Property papers with OC and CC.
  • Documents Required for Self-Employed Businesspersons:
  • Neatly signed and filled loan against property application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • IT Returns of the three years preceding the one in which loan is applied for.
  • Copy of details of all existing loans.
  • Property papers with OC and CC.

What are the Interest Rates for Loan Against Property?


The borrower has an option to choose for two types of interest rates while applying for loan against property: Fixed Interest Rate and Adjustable Interest Rate. If you opt for fixed interest rate, the interest rate 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 interest rate, the interest rate does not stay fixed or static. The interest rate changes time to time as per prevailing market conditions. This type of interest rate 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. 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 consumers to get a loan against property. Our easy to use online procedure allows consumers to apply documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.

Benefits of applying with us

We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a loan against property with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.

Compare your loan options

You can compare interest rates, 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 a dime.

Privacy policy

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

How to Apply For a Loan Against Property on Ruloans?


  • How to Apply For a LAP Transfer without Top Up on Ruloans?
  • Step 1: Go to the 'LAP' menu on our website and click on strong‘Loan Transfer without Top Up'option and click on ‘Check Your Eligibility' box.
  • Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
  • Step 3: 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.
  • Step 5: 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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