What is Loan Against Property?

Loan against property is a type of loan where you pledge your commercial or residential property as collateral. It's also known as a secured loan. The value of your property determines the loan amount you can get.

Types of Loan Against Property

• Self-owned residential property
• Self-owned and self-occupied residential property
• Self-owned but rented residential property
• Self-owned piece of land
• Self-owned commercial property
• Self-owned but rented commercial property

Benefits of Loan Against Property

• Lower interest rate: Generally lower than personal loans, ranging between 12% and 15%.
• Lower to no prepayment charges
• Easy to get: Banks are willing to provide these loans as they are secured.
• Longer tenure: Up to 15 years, compared to personal loans which are generally up to 7 years.
• Lower EMI: Longer tenure results in lower EMIs.

Documents Required for Loan against Property

For Salaried Employees:

• Proof of identification: PAN card, Passport, Driving License, Voter’s ID, Employee ID, Bank passbook, Ration card
• Address proof: Passport, Utility bill (less than 2 months old), Letter from a recognized public authority, Bank passbook or Bank account statement, Voter’s ID, Ration card, LIC policy/ receipt

For Self-Employed:

• Proof of Identification: PAN card, Passport, Driving License, Voter’s ID, Bank passbook, Ration card
• Address Proof: Passport, Utility bill (less than 2 months old), Bank passbook or Bank account statement, Voter’s ID, Ration card, LIC policy/ receipt