Get access to substantial funds at competitive interest rates by leveraging your property in India. Our Loan Against Property (LAP) offers flexible repayment options up to 20 years, minimal documentation with digital KYC, and quick approval for your business expansion, children's education abroad, wedding expenses, or debt consolidation needs across Mumbai, Delhi NCR, Bangalore, and other major Indian cities.
Compare our competitive interest rates for different borrower profiles across major Indian cities including Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad and Pune
Last updated: Today, 10:30 AM
Salaried Individuals
8.25% - 10.75%
RBI CompliantSelf-Employed Professionals
9.50% - 11.75%
IT/CA/Doctor BenefitsSelf-Employed Businesspersons
10.00% - 12.50%
GST-Based AssessmentA Loan Against Property (LAP) offers significant financial flexibility by leveraging your existing residential or commercial property assets in India. With higher loan amounts (up to ₹10 crores), longer tenure, and lower interest rates compared to personal loans, it's an ideal solution for funding your child's education abroad, business expansion, or consolidating high-interest debts.
Getting a Loan Against Property in India is now a streamlined digital process. MoneyKarma guides you through each step, from online application to disbursement, with Aadhaar-based eKYC and digital documentation for a paperless experience across all major Indian cities.
Choose the right Loan Against Property option that suits your financial needs and repayment capacity. Our customized solutions cater to different property types across India, from apartments in Mumbai to villas in Bangalore.
Ideal for one-time large expenses like funding your child's education abroad or daughter's wedding with fixed monthly installments against your residential property in premium localities.
Perfect for Indian business owners with seasonal cash flow needs like textile businesses in Surat or retail shops in Delhi with GST registration. Use your commercial property to access revolving credit.
Specifically for Indian commercial property owners in tech parks of Bangalore, office complexes in Mumbai or Gurgaon malls, who need financing against future rental receipts with registered rental agreements.
Find out if you qualify for a Loan Against Property in India. Check the basic eligibility requirements and documentation needed for properties across major Indian cities.
Keep these documents ready to expedite your loan application process. Many documents can now be submitted digitally through our Aadhaar-based eKYC process.
Hear from our clients across India who have successfully leveraged their properties to achieve their financial goals, from funding education abroad to expanding businesses
Expanded my manufacturing business in Pune
"I needed ₹85 lakhs to expand my auto components manufacturing unit in Chakan industrial area but didn't want to liquidate my mutual fund investments during market volatility. MoneyKarma helped me secure a Loan Against my 3BHK apartment in Baner at just 9.25% with minimal documentation and digital KYC. The funds allowed me to purchase CNC machinery and hire 15 new skilled workers, doubling our production capacity for our export orders. The step-up EMI option matches our seasonal cash flow perfectly."
Funded my twins' education in the US
"When both my twins got accepted to engineering programs at Georgia Tech and University of Illinois, I was worried about the combined education cost of nearly ₹1.8 crore. Thanks to MoneyKarma's Loan Against our family home in Indiranagar, Bangalore, I secured ₹1.2 crores at just 8.75% - much lower than education loan rates of 13-14%. The digital application process took just 3 days with Aadhaar-based eKYC, and the 20-year tenure makes EMIs manageable at ₹82,000 per month. The moratorium period of 6 months gave us time to arrange forex and settle the children abroad."
Loan Against Property (LAP) in India is a secured loan where you pledge your residential or commercial property as collateral. Lenders like banks and NBFCs offer a loan amount based on a percentage (typically 50-70%) of your property's market value as determined by their approved valuation agencies. You continue to own and use the property while repaying the loan through EMIs. LAP is governed by RBI guidelines and offers larger loan amounts (up to ₹10 crores), lower interest rates (starting from 8.25%), and longer repayment terms (up to 20 years) compared to personal loans, making it ideal for business expansion, education financing, or debt consolidation.
Most types of fully constructed properties across India are eligible for LAP, including: 1) Residential properties like apartments, independent houses, villas, row houses, and builder floors in municipal limits of cities; 2) Commercial properties such as offices, retail shops, showrooms, and business premises with proper commercial usage permissions; 3) Industrial properties in designated industrial zones with NOCs. The property must have a clear title, Occupancy Certificate (OC), necessary RERA approvals, and be free from legal disputes. Most lenders prefer properties in urban and semi-urban areas of India. Properties under construction, agricultural land, disputed properties, and those in unauthorized colonies or with encroachments are generally not eligible.
In India, the loan amount typically ranges from 50% to 70% of your property's market value (Loan-to-Value ratio or LTV), with maximum amounts up to ₹10 crores for premium properties. For residential properties in metro cities like Mumbai, Delhi NCR, Bangalore, the LTV can go up to 70%, while in Tier-2 cities it's typically 60-65%. Commercial properties usually have a lower LTV of 55-65% depending on tenant quality and lease terms. Factors affecting the loan amount include: 1) Property location and type (apartments in gated societies command higher LTVs); 2) Property age (newer properties get higher valuations); 3) Your income and CIBIL score (750+ gets better terms); 4) Existing liabilities and fixed obligation to income ratio (FOIR should be under 55-60%); 5) Property documentation completeness (clear title properties get higher LTV). Higher-value properties in premium localities of Mumbai, Delhi, and Bangalore typically qualify for the maximum loan amounts.
In India, you can claim significant tax benefits on a Loan Against Property based on how you utilize the funds: 1) For Business Purposes: If you use LAP for business expansion or working capital, the entire interest amount is tax-deductible as a business expense under Section 36(1)(iii) of the Income Tax Act. Additionally, processing fees and other loan charges can be claimed as business expenses. 2) For Home Renovation/Construction: If you use LAP to renovate or construct a residential property, you can claim: - Up to ₹2 lakhs on interest payments under Section 24(b) - Up to ₹1.5 lakhs on principal repayment under Section 80C (combined with other 80C investments) 3) For Self-Occupied Property: When the mortgaged property is self-occupied and the loan is used for renovation, you can claim interest deduction up to ₹2 lakhs per financial year. 4) For Education Purposes: When used for higher education, you may qualify for deduction under Section 80E (for specific family members' education). Note: Tax benefits are subject to changes in annual Finance Acts, and professional tax advice is recommended based on your specific situation.
In India, Loan Against Property (LAP) and Home Loan differ in several key aspects: 1) Purpose: Home loans are specifically for buying, constructing, or renovating residential property. LAP can be used for any purpose including business expansion, education, medical expenses, or debt consolidation. 2) Interest Rates: Home loans typically have lower interest rates (starting from 6.7%) compared to LAP (starting from 8.25%) due to their specific purpose and government initiatives like PMAY. 3) Loan Amount: Home loans offer up to 90% of property value for amounts under ₹30 lakhs, while LAP typically offers 50-70% of property value. 4) Tax Benefits: Home loans offer more comprehensive tax benefits under Section 24(b) and 80C of Income Tax Act. LAP offers tax benefits only if used for specific purposes like business or property renovation. 5) Processing Fee: Home loans usually have lower processing fees (0.25-0.5%) compared to LAP (0.5-2%). 6) Loan Tenure: Home loans offer longer tenures (up to 30 years) compared to LAP (up to 20 years). 7) Documentation: Home loans require property purchase documents, while LAP requires existing property ownership documents. 8) Disbursement: Home loans are disbursed directly to property sellers/builders, while LAP funds are disbursed directly to the borrower.