Loan Against Property Features

Flexible Loan Eligibility

Loans value from Rs.10 Lakh to Rs.5 Crore

Loans against commercial, residential or industrial property

Loan for your business as well as personal needs

Features and Benefits of our Loan Against Property

  • Secured Loan : The loan is secured against the value of your property. The property acts as collateral, reducing the risk for the lender. This generally leads to lower interest rates compared to unsecured loans.
  • Loan Amount:  The loan amount is determined based on the value of the property you pledge. Generally, you can get a higher loan amount compared to personal loans or other unsecured loans.
  • Flexible Tenure : The tenure (repayment period) for a Loan Against Property is usually longer compared to other types of loans, often ranging from 5 to 20 years. This allows for lower monthly installments.
  • Multipurpose : The loan amount can be used for a wide range of purposes, giving you the flexibility to address various financial needs without any restrictions.
  • Improves Credit Scores : Successfully repaying a Loan Against Property can positively impact your credit score, as it demonstrates responsible borrowing behavior.

Loan Against Property Eligibility and Documents

Read on to know the criteria required to apply for our Loan Against Property.

Eligibility Criteria for Loan against Property

Nationality: You need to be a Citizen of India with documents to prove your claim.

Occupation and Income: Your lender will require you to furnish details regarding your occupation and income to prove your professional and financial stability to determine your creditworthiness.

Credit History: Your three-digit Credit Score, indicative of your track record in respect of repayment of loans, and other forms of credit will be a deciding factor to prove your eligibility for a LAP.

Banking Relationship: Should you have a healthy relationship with your lender, you will not be disapproved for a LAP. Additionally, your lender will offer you better terms and conditions in respect of loan value, interest rates, period of the loan, hidden charges, and processing fees.

Market Value of Property: Your lender retains the right to decide the loan amount and terms and conditions of your mortgage loan based on the market value of your collateral property. Besides, the market value of the mortgaged property must be higher than the loan amount calculated on the current value of your property.

Title of Property: Your lender will require you to be the current existent owner of the property, and in case of a co-application, you will require to prove multiple ownership clear title. Besides, the property must not be mortgaged with any other financial institution.

Documentation for Loan Against Property Loan

  1. Proof of identity/residence
  2. Proof of income
  3. Property-related documents
  4. Proof of Business (for self-employed)
  5. Account statement for the last 6 months

Loan Against Property EMI Calculator

A Loan Against Property may be termed as a Mortgage Loan since to avail an LAP, you need to mortgage your property to cover risk of non-payment or default in repayment of the funds borrowed. For any lender to approve such a borrowing, the lender will first analyse your personal and financial profile, which will include criteria such nationality, age, occupation, income, and market value of the collateral you are willing to keep. A mortgage loan calculator then calculates the financial implications of such a loan based on certain parameters based on eligibility criteria to enable approval of your Mortgage Loan.

How is  Loan Against Property EMI Calculated?

Loan Against Property EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:

EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]


EMI = Equated Monthly Installment

P = Loan Against Property principal amount

r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)

n = Loan Against Property tenure in months

Fees and Charges for Loan Against Property Loan

The fees and charges of car loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to car loans:

Loan Processing Fees
0.5% to 4% of loan amount
Loan Cancellation
Usually around Rs 3,000
Stamp Duty Charges
As per actuals
Legal Fees
As per actuals
Penal Charges
Usually @ 2% per month; 24% p.a.
EMI/Cheque Bounce
Around Rs 400 per bounce

Loan Against Property Reviews



RULOANS helped me find the appropriate lender offering me the best interest rates and terms & conditions for purchasing a warehouse to setup my manufacturing unit. Within a span of 20 days my loan against property got approved and disbursed.




Not having the proper knowledge of how to use and repay the loans I got under a debt of 37 lacs from 4 various banks and the rate of interest of all the loans being high it was getting very difficult for me to repay all the loans together and keeping a track of all the EMI’s. I then read a blog of debt consolidation posted by RULOANS in which I got knowledge about it. I immediately contacted their toll free number and asked them about the procedure; RULOANS personnel were so helpful about providing me the right path and knowledge about it and helped me to shift all my loans at one place offering them my home as the collateral.




I really liked the loan against property by Ruloans. The moment I applied for it I got a call from their representative for further process. My documents were collected from home and the process was completed on time. A big thanks to Ruloans.




My loan against property was taken through Ruloans. It was a smooth process and they regularly updated me with the developments. Even they sanctioned my loan in a proper time frame. Surely recommended.


Loan Against Property FAQs

A Loan Against Property (LAP) allows you to borrow money by pledging your property as collateral. You can use the loan amount for various purposes, including business expansion, debt consolidation, home renovation, education expenses, medical bills, wedding expenses, travel, and other personal or business needs. The specific usage of the loan amount can vary depending on the lender and the terms of the loan agreement.

The amount of loan you can get against your property depends on several factors, including the value of the property, your income, repayment capacity, and the lender's policies. Typically, lenders offer loans ranging from 60% to 80% of the property's market value. However, some lenders may offer higher loan amounts, especially for residential properties. It's advisable to check with the lender to understand the maximum loan amount you can qualify for based on your property's value and your financial situation.

The interest rate for Loan Against Property usually starts from 9.00% p.a and ranges anywhere between 9.00%p.a and 13-15% p.a

To apply for a Loan Against Property (LAP), check the lender's eligibility criteria, gather necessary documents, and compare offers. You can apply online or offline, submitting the application along with required documents. The lender will assess your property's value and approve the loan if you meet their criteria. Repay the loan in installments as per the agreement.

Yes, you can continue to use your property even if it is mortgaged for a Loan Against Property (LAP). The property remains in your possession and can be used for residential or commercial purposes as before. However, you must ensure timely repayment of the loan to avoid any risk of losing the property due to default.

A Loan Against Property Overdraft (LAP OD) is a type of loan facility that allows you to withdraw funds from your LAP account up to a specified limit. Similar to a credit card or a line of credit, you can withdraw and repay funds multiple times, as long as you stay within the approved limit.With LAP OD, you only pay interest on the amount you withdraw, not on the entire approved limit. This can provide flexibility in managing your finances, as you can use the funds as needed and repay them at your convenience. However, interest rates for LAP OD are typically higher than regular LAP loans, so it's important to use this facility judiciously.

Loan Against Property Overdraft (LAP OD) offers several advantages over a regular LAP. One key benefit is its flexibility, as it allows you to withdraw and repay funds multiple times up to the approved limit, similar to a credit card. This flexibility can be especially useful for businesses with fluctuating cash flows or individuals with varying financial needs. Additionally, LAP OD offers interest savings, as you only pay interest on the amount you withdraw, not on the entire approved limit. This can result in lower overall interest costs compared to a regular LAP. Furthermore, LAP OD can serve as a convenient source of funds for emergencies or unforeseen expenses, providing quick access to cash when needed. Overall, LAP OD provides greater financial flexibility and cost savings compared to a traditional LAP.

Yes, you can transfer your existing LAP from one lender to another, known as a balance transfer, to benefit from lower interest rates or better terms offered by the new lender. This process involves applying for a new loan with the new lender, who then pays off your existing loan with the previous lender. Carefully compare the terms, conditions, and any associated fees to ensure that the balance transfer is a cost-effective option for you.

Yes, you can take a top-up loan on your existing Loan Against Property (LAP). A top-up loan allows you to borrow additional funds over and above your existing LAP amount, usually at the same or slightly higher interest rate.

To be eligible for a Loan Against Property (LAP), you typically need to be the owner of the property offered as collateral, be within a certain age range (usually 21 to 65 years), and have a minimum income to ensure loan repayment. The value of the property and your credit score are also considered. Other factors such as employment status, existing debts, and repayment track record may also be taken into account. Eligibility criteria can vary among lenders, so it's best to check with them for specific requirements.

The value of the property for a Loan Against Property (LAP) is determined by a valuer appointed by the lender. The valuation considers factors such as the property's market value, condition, location, comparable sales, rental yield, and legal aspects. This helps the lender assess the property's worth to determine the loan amount you can borrow.

Lenders providing Loan Against Property (LAP) typically accept various types of properties as collateral. This includes residential properties like apartments, houses, and villas, whether self-occupied or rented out. Commercial properties such as shops, offices, warehouses, and industrial units are also accepted. Additionally, lenders may consider vacant land or plots, as well as mixed-use properties that have both residential and commercial units. The acceptance of a property as collateral can depend on factors such as its location, market value, and legal status. It's advisable to check with the lender regarding their specific criteria for accepting properties for LAP.

The main difference between a Home Loan and a Loan Against Property (LAP) lies in their purposes and the nature of the collateral. A Home Loan is specifically meant for purchasing a residential property or constructing a new home. The property being purchased or constructed serves as collateral for the loan, and the lender holds a lien on it until the loan is repaid. On the other hand, a LAP allows you to borrow money against a property you already own, which can be residential, commercial, or industrial. The property you pledge remains in your possession, but the lender has a lien on it until the loan is fully repaid. The loan amount from a LAP can be used for any purpose, such as business expansion, education, medical expenses, or debt consolidation.

Yes, you can prepay or foreclose your Loan Against Property (LAP) in advance. However, your lender may charge a prepayment penalty or fee for doing so. It's best to check with your lender regarding their policies on prepayment or foreclosure.

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