What is a loan against property?
A loan against property (LAP) is a secured loan in which you mortgage a property you own to raise funds for business or personal needs. Because the loan is secured, LAP usually carries a lower rate and a longer tenure than unsecured business loans, and larger amounts are possible.
LAP options we arrange
- LAP term loan – a lump sum repaid in EMIs, for expansion, capex or debt consolidation.
- Overdraft against property – a revolving limit where interest is charged only on the amount used.
- Lease rental discounting (LRD) – a loan against the future rent from a property leased to a good-quality tenant.
- Balance transfer and top-up – move an existing LAP to a lender with better terms, often with additional funds.
How much can you get?
The loan amount depends on the property's market value, the lender's loan-to-value (LTV) norms for that property type, and your repayment capacity based on income or business cash flows. Residential property generally attracts a higher LTV than commercial or industrial property. Clear title, approved construction and the property's location all influence the final amount and rate.
Eligibility and documents
- KYC of borrower and co-owners (all property owners are usually co-applicants)
- Income proof: ITRs and audited financials for self-employed and businesses; salary documents for salaried applicants
- 12 months' bank statements and GST returns (for businesses)
- Complete property chain documents, approved plan, and tax receipts
- Existing loan statements if you are transferring a LAP
Why go through NexKred?
LAP policies differ widely between banks and NBFCs — on property types accepted, LTV, income assessment and pricing. We match your property and profile to the lenders most likely to offer the best terms, handle the legal and technical process with them, and negotiate the rate and charges on your behalf.
Frequently asked questions
What can a loan against property be used for?
Business expansion, working capital, capex, debt consolidation, education or other legitimate needs. Lenders ask for the end-use and do not permit use for speculative purposes.
Can I get a loan against commercial or industrial property?
Yes. Most banks and NBFCs accept commercial and industrial property as security, usually at a lower loan-to-value ratio than residential property.
Can I continue to use the mortgaged property?
Yes. Ownership and use of the property remain with you; the lender holds a mortgage charge until the loan is repaid.
Can I transfer my existing LAP to another lender?
Yes. A balance transfer can reduce your interest rate and may include a top-up. We compare the savings against processing and legal charges before recommending a switch.