Loan against property
A loan against property (LAP) is a secured loan against a house or commercial property you already own. Because the property backs the loan, rates are lower and tenures longer than on a personal loan, but the property is at risk if you cannot repay.
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How a loan against property works
- You mortgage a residential or commercial property you own; the bank registers its charge on it until the loan is closed.
- Banks usually lend 60–75% of the property’s market value, less for commercial property.
- Tenures run up to 15–20 years, so EMIs are lower than on a personal loan of the same size.
- Processing takes weeks rather than days because of the legal and valuation checks.