A loan against property (LAP) is a secured loan that banks, housing finance companies and NBFCs provide against residential or commercial property. These loans are usually offered at a lower interest rate as compared to a personal loan or business loan and are disbursed at a reasonable time.

This criteria will vary from one bank to another. However, some common factors that all banks look at are as follows:-

• Income, savings, debt obligations
• Value of the property mortgaged
• Your repayment track record for other loans, credit cards, etc.

The property which are accepted are Residential, commercial( Shops offices and Galas), Industrial and specialized property.

The loan amount which you can avail depends on the overall condition of the property.

Residential Property

Self-Occupied: 70% to 75% of Market Value

Rented: 50% to 60% of Market Value

Vacant: 40% to 50% of Market Value

Commercial Property

Self-Occupied:  60% to 65% of Market Value

Rented: 50% to 55% of Market Value

Vacant: 40% to 45% of Market Value

Industrial Gala: 50% to 55% of Market Value

Loan against Land (Non-Agricultural): 40% of Market Value.

Yes, you can transfer the outstanding principal of your LAP from your existing lender to another bank at lower interest rates and longer tenures, with the help of the balance transfer facility.

Yes, a top-up loan can be availed on your existing Loan against property. Once you have completed repayments on your existing loan for more than 6 months, An additional top- up loan on your existing loan can be offered subject to market value of your property.