Unlock Property Value Without Selling
Borrow up to ₹2 crore against your residential or commercial property at competitive interest rates from 7-12% p.a. Retain complete ownership, flexible repayment, and quick approval in just 5-7 working days.
What is Loan Against Property (LAP)?
A loan against property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to borrow funds. Unlike selling your property, LAP allows you to retain complete ownership and occupancy while accessing funds for business expansion, debt consolidation, education, medical emergencies, or any personal or business need. The loan amount is determined by the property value, typically ranging from 40-70% of your property's market value.
Why Choose a Loan Against Property?
✓ Low Interest Rates
Competitive rates from 7-12% p.a., much lower than personal loans due to collateral security
💰 Large Loan Amounts
Borrow from ₹25 lakhs up to ₹2 crore+ based on property value
📋 Keep Your Property
You retain complete ownership and can live in or rent out the property
⚡ Quick Approval
Fast processing in 5-7 working days with minimal documentation
🔄 Flexible Repayment
Extended tenure up to 15-20 years with customized EMI options
🏢 Multiple Uses
Use funds for business, education, medical, investment, or personal needs
Property Types Accepted
Apartments, houses, villas, townhouses
Office spaces, shops, warehouse, showroom
Farm land, agricultural plots, orchards
Vacant land, residential plots, commercial plots
Common Uses of Loan Against Property
New branches, capacity, equipment
Higher studies, abroad education, courses
Emergency treatment, surgery, healthcare
Combine debts, reduce burden, lower rates
Repairs, upgrades, renovation, extension
Stock market, mutual funds, real estate
Loan to Value (LTV) Ratios Explained
The loan amount you can borrow is calculated based on your property's market value. LTV ratio is the loan amount as a percentage of property value. Most lenders offer 40-70% LTV.
Example 1: Standard LTV (50%)
Property Value: ₹50 lakhs
LTV (50%): ₹50L × 50% = ₹25 Lakhs
Competitive interest rate, lower risk
Example 2: Higher LTV (70%)
Property Value: ₹1 Crore
LTV (70%): ₹1Cr × 70% = ₹70 Lakhs
Slightly higher rate, more funds
LAP vs. Selling Your Property: Why LAP is Better
| Factor | Loan Against Property | Selling Property |
|---|---|---|
| Property Ownership | ✓ You retain full ownership | ✗ Ownership transferred |
| Time to Get Funds | ✓ 5-7 working days | ✗ 3-6 months |
| Process Complexity | ✓ Simpler, fewer processes | ✗ Complex, legal procedures |
| Legal Costs | ✓ Lower registration & legal costs | ✗ High stamp duty & legal fees |
| Housing Loss | ✓ Keep your home/asset | ✗ Lose your property immediately |
| Future Appreciation | ✓ Benefit from property growth | ✗ Miss future value appreciation |
| Interest Rate | ✓ 7-12% p.a. (secured) | N/A (no borrowing) |
| Flexibility | ✓ Repay & rebuild equity | ✗ One-time transaction |
Eligibility Checklist for LAP
✓ Age & Employment
- Age between 25-70 years
- Salaried / self-employed individual
- Minimum 2 years job stability
✓ Income & Property
- Minimum annual income ₹3-5 lakhs
- Property should be owned for 2+ years
- Property documents in order
✓ Credit & Property Condition
- Good credit score (650+)
- Property without major encumbrances
- Clear property title
✓ Location & Property Value
- Property in metro/Tier-1/Tier-2 cities
- Minimum property value ₹25-40 lakhs
- Residential or commercial property
Documents Required for LAP Application
Identity & Address Proof
- PAN Card
- Aadhar Card / Passport
- Recent address proof (utility bill, rental agreement)
- Driving License (optional)
Income Proof
- Last 6-12 months salary slips
- IT returns (last 2 years)
- Bank statements (12 months)
- Employment verification letter
Property Documents
- Property deed / sale agreement
- Encumbrance certificate (EC)
- Property tax receipts (2 years)
- Municipal assessment details
- Possession certificate / registration
Additional Documents
- Loan proposal / application form
- NOC from existing lenders (if any)
- Property valuation report
- Recent photographs of property
LAP Processing Timeline
Day 1-2: Application Submission
Submit application and documents. Initial verification begins.
Day 2-4: Property Valuation
Professional property valuer visits and prepares valuation report.
Day 4-6: Approval & Disbursal
Loan approved, documentation finalized, funds disbursed.
Day 7: Funds in Your Account
Complete disbursal and repayment EMI begins next month.
Interest Rates & Tenure Options
LAP interest rates are typically lower than personal loans due to property collateral. Rates vary based on property value, LTV ratio, loan tenure, credit score, and current market conditions.
Interest Rate Range
7% - 12% p.a.
- Lower rates for higher property values
- Higher rates for higher LTV ratios
- Rate based on credit score
- Floating & fixed rate options available
Tenure Options
5 - 20 Years
- Flexible repayment period
- Lower EMI with longer tenure
- Prepayment options available
- No penalty for early repayment
Simple LAP Application Process
Share Your Details
Provide property info, financial details, and loan requirement. Initial eligibility check.
Property Evaluation
Our partner conducts property valuation and prepares assessment report.
Documentation
Submit property and income documents. Verification begins immediately.
Approval & Disbursal
Loan approved and funds disbursed to your account within 5-7 days.
Advantages of LAP at Shubhbank
5-7 day approval
7-12% p.a.
Partner options
Simple process
Full ownership
5-20 year tenure
Need help finding the right loan?
Share your details and our team will assist you with suitable loan options from our lending partners.
Frequently Asked Questions About LAP
What is a loan against property?
A loan against property (LAP) is a secured loan where your residential or commercial property is pledged as collateral to borrow funds for any personal or business need.
What can I use a loan against property for?
You can use LAP funds for business expansion, debt consolidation, education, medical needs, home renovation, investment, or any personal or business requirement.
What is the maximum loan amount for LAP?
Maximum LAP amount typically ranges from Rs. 25 lakhs to Rs. 2 crore+ depending on property value, location, and lender policies. Typically 40-70% of property value.
What is the interest rate for loan against property?
Interest rates typically range from 7-12% per annum, usually lower than personal loans due to collateral security. Rates vary based on property value and loan amount.
Is my property at risk with a loan against property?
Your property remains with you and you continue living in it. Risk arises only if you default on payments, in which case the lender can take possession.