Reviewed by the CreditCares advisory desk · 13 years in business finance · Last updated 10 July 2026
Loan Against Property — unlock your property's trapped capital.
Borrow against residential, commercial or industrial property — without selling the asset or giving up possession. Total end-use flexibility: expansion, working capital, debt consolidation, education or contingencies.
How much can you borrow?
The loan amount is a percentage of your property's appraised value — the Loan-to-Value (LTV) ratio. Under RBI guidelines, banks cap LTV at 75% for loans up to ₹75 Lakh and 65% above that; NBFCs generally work within a 55–75% bracket.
Lenders apply the LTV to the lower of market price or their surveyor's technical valuation — which is where most applicants lose 20–30% of expected sanction. We pre-empt that before the file goes in.
Interest rates in 2026
Representative bands as of mid-2026 — final pricing depends on your profile and the asset.
Why LAP applications fail — beyond a low credit score
Old, fully-repaid mortgages that were never formally released still show on the Encumbrance Certificate — stalling files by 3–6 weeks. Pull a 30-year EC before applying.
Unapproved mezzanines or floor additions get valued out — surveyors count only the as-sanctioned area, cutting mortgageable value by up to 40% on older industrial assets.
Lenders cap total EMIs at 50–55% of net income. Retiring high-interest unsecured loans before applying can expand your sanction by 20–30%.
Documents required
Incomplete files cause most multi-week delays. We prepare the complete suite upfront, the way credit teams want it.
- Aadhaar & PAN card
- Passport / Voter ID / Driving licence
- 3 yrs ITR + CA-certified P&L / balance sheets
- GST returns & trade licence
- 12 months' bank statements
- Salaried: 3 months' slips + Form 16
- Registered sale deed & title chain
- Sanctioned plan + occupancy certificate
- Encumbrance Certificate (13–30 yrs)
- Up-to-date property tax receipts