Loan Against Property FAQs


1. What is a Loan Against Property (LAP) ?

It is a loan against fully constructed, freehold residential and commercial properties for: Personal and Business Needs(other than for speculative purposes) like marriage, medical expenses and child’s education etc. Existing Loan Against Property(LAP) from other banks and financial institutions can also be transferred.

2. What is maximum funding that the customer can avail on a property as LAP?

For Existing Customers, the principal outstanding on all existing loans and the Loan Against Property being availed should not cumulatively exceed 60% of the Market Value of the mortgaged property. For New Customers, loan against property being availed should not, generally, exceed 50% of the Market Value of the property.

3. How the customer can avail Loan Against Property(LAP)?

Loan Against Property(LAP) can be availed by both salaried and self employed individuals for personal and professional needs(other than for speculative purposes) like marriage, Child’s education, business expansion, debt consolidation etc.

4. what is the maximum term for which I can avail Loan Against Property (LAP)?

The customers can avail a loan against property for a maximum term of 15 years or till your age of retirement, whichever is lower.

5. What is the security that the customers need to provide to avail a Loan against Property?

Security of the loan would generally be security interest on the property being financed by various banks and or any other collateral or interim security as may be required.

6. Can I avail Loan Against Property (LAP) for a commercial property?

Yes, Loan Against Property(LAP) can be availed against a fully constructed and freehold commercial properties .


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