In the realm of secured loans, loan against property stands out as a powerful financial tool. Whether you're planning to expand your business, finance your child’s education, cover medical expenses, or consolidate high-interest debts, loan against property provides a cost-effective and reliable funding solution.
Read on to know about a loan against property—what it is, how it works, eligibility, benefits, documents required, and more.
What is a loan against property?
A loan against property is a secured loan where you pledge your residential, commercial, or industrial property as collateral to borrow funds from a bank or financial institution. Loan against property can be used for various personal and professional needs such as business expansion, education, medical emergencies, or debt consolidation. Since it is backed by property, it offers lower interest rates compared to unsecured loans like personal loans and comes with longer repayment tenures, often up to 15 years. The ownership of the property remains with the borrower, but the lender holds the legal rights to it until the loan is fully repaid. Loan against property is available to both salaried and self-employed individuals, making it a versatile and affordable financing option for high-value needs.
Eligibility criteria for loan against property
- Nationality: You must be an Indian citizen residing in India with property in a city we operate in.
- Age: Minimum age: 25 years (18 years for non-financial property owners)
Maximum age: 85 years (including non-financial property owners)
*Age of the individual applicant/ co-applicant at the time of loan maturity.
*Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure. - CIBIL Score: A CIBIL Score of 700 or higher is ideal to get an approved loan against property.
- Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.
Documents required for loan against property
- Proof of identity/ residence - Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card
- If your current address is not the same as the OVD document provided, please share any of the listed DOVD documents. Click here to view the documents.
- Proof of income
- Property-related documents
- Proof of business (for self-employed applicants), and
- Account statements for the last 6 months
Note: This is an indicative list that may change based on your actual loan application.
How to apply for loan against property during raksha badhan offers
- Click on “APPLY” button on this page.
- Enter your 10 digit mobile number and OTP.
- Fill in the application form with your Personal Details, Business/Employment/Professional details, Property details and proceed.
- Enter your loan amount that you need, choose from our three loan variants- Flexi term loan, Flexi Hybrid Term Loan, and Term loan.
- Choose the repayment tenure - You can select tenure option of 12 month to 180 month and click on proceed.
Benefits of getting a loan against property during Raksha Bandhan offers
Lower interest rates
Since loan against property is a secured loan, it comes with significantly lower interest rates compared to unsecured loans.
Longer tenure
You can opt for repayment periods of up to 15, helping to reduce EMI burden.
High loan amount
You can avail a large sum—up to ₹5 crores or more—depending on your property’s market value.
Use for any purpose
Unlike home loans, loan against property doesn’t restrict how you use the funds. Use it for education, business, or even travel.
Festive offers and special schemes
During festivals like Raksha Bandhan, Diwali Bajaj Finance roll out special loan against property offers:
- No foreclosure charges*
- Discounted interest rates
- Quick disbursal
- Top-up eligibility checks
- Longer tenures
Thinking of upgrading your business or funding your child’s education? A loan against property offers high-value funds at affordable rates—without giving up ownership of your asset. Get loan of up to Rs. 10.50 Crore* against your property within 72 hours* of the approval.
Conclusion
A loan against property is a smart way to unlock the value of your assets without having to sell them. It offers a win-win solution with large loan amounts, flexible usage, and long repayment tenures at relatively low interest rates. However, since your property is on the line, it is crucial to borrow responsibly, understand all terms clearly, and repay EMIs on time. By doing so, you can make the most of this powerful financial tool to meet your short-term and long-term financial needs.
