Loan against property
Loan against property — borrow more, at a lower rate
A loan against property lets you raise money against a home, shop or plot you already own while continuing to use it. Because the lender holds security, the rate is markedly lower and the tenure longer than an unsecured loan of the same size — which makes it a common choice for large, planned expenses like business expansion, education abroad or consolidating costlier debt. The trade-off is real: default puts the property at risk.
Why borrowers pick it
What a loan against property gives you
Larger amounts
Sanctions run well above unsecured limits because the loan is backed by an asset the lender can value.
Lower rate than a personal loan
Security cuts the lender's risk, and that shows up directly in the interest you pay.
Keep using the property
You continue to live in or operate from the property. Only the title is mortgaged for the term of the loan.
Residential or commercial
Self-occupied homes, rented flats, shops and some industrial units are accepted, subject to the lender's policy.
Eligibility
Who qualifies for a loan against property
Criteria differ by lender. These are the ranges our partners commonly apply — the exact rule is shown on each offer.
The applicant
- Within the lender's age limits at loan maturity
- Steady income from salary, business or rent
- A good credit score and a clean repayment history
- Clear, marketable title in the applicant's name
The property
- Residential, commercial or (with some lenders) industrial
- Free of existing mortgage, or with a transferable charge
- Located within the lender's approved geography
- Constructed with approved plans and a valid occupancy certificate
Paperwork
Documents you will need
Keep soft copies ready before you apply — most partners complete verification digitally.
Applicant documents
- PAN card and Aadhaar
- Income proof — salary slips or income tax returns
- Recent bank statements
- Existing loan statements, if any
Property documents
- Title deed and the full chain of earlier documents
- Approved building plan and occupancy certificate
- Latest property tax receipts
- Encumbrance certificate for the period the lender requires
Costs
Interest, fees and charges
The rate is only part of the cost. Read this table alongside the total payable shown on each offer.
| Charge | What lenders typically apply |
|---|---|
| Processing fee | A percentage of the loan amount + GST, set by the lender |
| Interest rate | Set by the lender based on your profile |
| Legal and technical valuation | Often charged at actuals |
| Prepayment / foreclosure | As per the lender's terms; nil on floating-rate loans to individuals |
| Document retrieval on closure | Where applicable |
Figures in brackets are placeholders. Final rates and fees are set by the lending partner and are disclosed in the sanction letter before you accept an offer.
FAQs
Loan against property questions, answered
How much can I borrow against my property?
Lenders fund a share of the property's assessed market value — the loan-to-value ratio. Your income and existing obligations then cap the EMI, and the lower of the two limits applies.
Can I get a loan against a property that already has a home loan?
Often yes, as a top-up with your existing lender, or by transferring the loan and taking additional funding. The combined borrowing still has to sit within the lender's loan-to-value limit.
Is a loan against property cheaper than a personal loan?
Materially cheaper, because the lender holds security. The trade-off is a longer approval process, valuation and legal checks, and the fact that the property is at risk if you default.
Who keeps the original property papers?
The lender holds the original title documents for the term of the loan and returns them once it is closed and the charge is released.
Also compare
Other ways to borrow
Compare loan against property offers side by side
Checking offers is a soft enquiry, so your credit score is not affected.