Loan Against Property in India 2026: Unlock Home Equity at Low Rates
A loan against property (LAP) in India lets you borrow large amounts — typically 50–70% of your property’s market value — by mortgaging your home or commercial property as collateral. Interest rates start from 8.5% p.a. — significantly lower than personal loans — making it ideal for business expansion, debt consolidation, higher education, or any large planned expense. You continue living in or using your property throughout the loan tenure.
70%Max LTV on property
8.5%Interest rate starting p.a.
15 yrsMaximum tenure
₹3 CrMaximum loan amount
How Much Loan Against Property Can You Get?
| Property Value | LTV 50% | LTV 60% | LTV 70% | EMI @ 9% / 10 yrs |
|---|---|---|---|---|
| ₹30,00,000 | ₹15,00,000 | ₹18,00,000 | ₹21,00,000 | ₹26,597/mo |
| ₹60,00,000 | ₹30,00,000 | ₹36,00,000 | ₹42,00,000 | ₹53,194/mo |
| ₹1,00,00,000 | ₹50,00,000 | ₹60,00,000 | ₹70,00,000 | ₹88,657/mo |
LTV ratio depends on property type, location, and age. Residential property in metro cities typically qualifies for 65–70% LTV. Commercial property usually gets 55–60% LTV. Rural properties may be assessed lower.
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LAP vs Personal Loan vs Home Loan
| Feature | Loan Against Property | Personal Loan | Home Loan |
|---|---|---|---|
| Rate (p.a.) | 8.5–11% | 6.99–15% | 8.5–11% |
| Max Amount | ₹3 Crore (70% LTV) | ₹3 Crore | ₹3 Crore (80% LTV) |
| Max Tenure | 15 years | 7 years | 30 years |
| Collateral | Existing property mortgaged | None | New property mortgaged |
| End Use | Any purpose | Any purpose | Property purchase only |
| Processing Time | 7–10 days | 24–48 hours | 5–10 days |
Documents Required for Loan Against Property
- KYC: Aadhaar, PAN, passport-size photographs
- Income: 6 months salary slips + Form 16 (salaried) or 2 years ITR + P&L (self-employed)
- Bank Statements: Last 12 months
- Property Documents: Title deed, sale deed, Encumbrance Certificate, property tax receipts, approved building plan
🏛️ Official Portals for Property Verification:
- uidai.gov.in — Aadhaar e-KYC for loan application
- incometax.gov.in — ITR filing and PAN verification
- rbi.org.in — RBI guidelines on LTV ratio and LAP regulations
Frequently Asked Questions
Can I get a loan against a property that still has an existing home loan?
Yes — this is called a “second mortgage” or “top-up loan.” The combined outstanding (existing home loan + new LAP) cannot exceed 70% of the property’s current market value. Approval depends on your income’s ability to service both EMIs.
What happens to my property if I default on LAP?
After repeated defaults and legal notices, the lender can invoke SARFAESI Act powers to take possession and auction the property. Always contact the lender proactively if repayment difficulties arise — restructuring or EMI deferment is available.
Is loan against property interest tax deductible?
Yes, if the loan amount is used for business purposes — interest is deductible under Section 36(1)(iii). If used for personal purposes, no deduction is available under the New Tax Regime. Check with your CA for specific applicability at incometax.gov.in.
Your property is your biggest asset — put it to work. Loan against property from Pragati Loan at 8.5% p.a., up to ₹3 crore, 15-year tenure. Business funding, education, or debt consolidation — any purpose.
