What is a loan against property?
A loan against property (LAP) is a secured loan where you pledge residential or commercial property as collateral to borrow funds. Because the loan is backed by an asset, lenders typically offer higher amounts and lower interest rates compared to unsecured personal loans.
FinGrowth helps you compare LAP offers from 35+ partner banks and NBFCs, so you can choose the right lender based on property type, loan amount and repayment comfort. Explore all FinGrowth loan services including property-backed finance.
Key benefits of LAP
- Higher loan amounts — often up to 60–70% of property market value
- Lower interest rates than most unsecured credit products
- Flexible end-use for business expansion, education, medical or debt consolidation
- Longer repayment tenures, typically up to 15–20 years
- You retain ownership of the property while repaying the loan
Eligibility criteria
Lenders evaluate the applicant's age, income stability, credit score and the property's legal and market value. Both salaried and self-employed borrowers can apply if the property has clear title and acceptable documentation.
- Age: usually 21–65 years at loan maturity
- Minimum CIBIL score: typically 650–700+
- Steady income from salary or business
- Property with clear title, approved layout and no major legal disputes
