Loan Against Property: Meaning, Benefits, How to Apply

• Loan against property is a secured loan provided against the mortgage of a property
• The property owner retains ownership and possession of the property during the loan tenure
• Loan against property offers access to high-value funding with flexible repayment options
• The loan amount depends on factors such as property value, income, credit profile, and lender policies

A loan against property works by using the value of an existing property as collateral. The lender evaluates the property’s market value, legal status, and the borrower’s repayment capacity before approving the loan.

The general process includes:

1. Property evaluation: The lender assesses the value and eligibility of the property.
2. Document verification: Property ownership documents and borrower details are reviewed.
3. Loan approval: Based on eligibility, income, credit score, and property value, the lender decides the loan amount.
4. Mortgage creation: The property is pledged as security until the loan is repaid.
5. Loan repayment: The borrower repays the loan through monthly EMIs over the selected tenure.

Once the borrower fully repays the loan, the lender releases the property documents and removes the mortgage.

• Loan amount of up to Rs. 15.50 crore*

  Manage your urgent financial needs with a sizeable loan amount of up to Rs. 15.50 crore* sanctioned based on your mortgaged property.

• Low interest rates

  Our loan against property comes with affordable interest rates starting from 8% to 14% (fixed or floating rate of interest) p.a.

• Disbursal in 72 hours*

  Get money in your bank account within 72 hours*- of the approval & subject to receipt of all applicable documents and basis risk policy.

• Tenure of up to 15 years*

  You can repay your loan amount conveniently with a repayment tenure ranging up to 15 years*.

• Multiple end-use options

  With no end-use restrictions, use the loan amount for an emergency or pay for wedding expenses, higher education or business expansion.

• No foreclosure charges*

  If all borrowers and co-borrowers are individuals, loan availed on floating interest rates, and loan taken for purposes other than business use, then there will be no foreclosure/ part-prepayment charges.

  
  

*Terms and conditions apply

Anyone can apply for our loan against property as long as they meet the criteria mentioned below.

Eligibility criteria

• Nationality: You must be an Indian citizen residing in India with property in a city we operate in.
• Age: Minimum age: 21 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.
• The CIBIL Score is an important indicator of your creditworthiness. To get a loan against property, it is preferable to maintain a CIBIL Score of 650 or higher.
• Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.

Documents required 

• 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

Step-by-step guide to applying for a loan against property

1. Click on “CHECK ELIGIBILITY” button on Bajaj FinanceLoan Against Property page

2. Enter your 10-digit mobile number and OTP

3. Fill in the application form with your Personal Details, Business/Employment/Professional details, Property details and proceed

4. Enter your loan amount that you need, choose from our three loan variants- Flexi Term (Dropline) Loan, Flexi hybrid term loan, and Term loan

5. Choose the repayment tenure - You can select tenure option of 12 months to 180 months and click on proceed

Our representative will guide you on the next steps.

The eligible loan amount under a Loan Against Property (LAP) depends on several factors related to the property, borrower profile, and lender policies. 

Key factors include:

• Property value: The market value of the property is one of the most important factors affecting the LAP loan amount. Lenders assess the property value through a professional valuation process to determine the eligible loan amount.
• Loan-to-value (LTV) ratio: Lenders provide a percentage of the property’s value as a loan, known as the LTV ratio. A higher property value may result in a higher eligible loan amount, subject to applicable limits.
• Income and repayment capacity: The borrower’s income, existing financial obligations, and ability to repay the loan influence the approved amount.
• Credit score: A good credit score indicates responsible borrowing behaviour and may improve eligibility for a higher loan amount.
• Property type and location: Residential, commercial, and industrial properties may have different valuation criteria. Properties in approved locations with clear documentation generally have better eligibility.
• Loan tenure: The selected repayment tenure also affects the loan amount and EMI affordability.

Loan against property is a secured borrowing option that enables individuals and businesses to unlock the value of their existing property without selling it. By offering flexible usage, longer repayment tenure, and access to substantial funds, a loan against property can help meet various financial requirements. Borrowers should evaluate their repayment capacity, loan terms, and property eligibility before choosing this financing option.