Ever wished your home or shop could help you raise funds—without having to sell it? Good news—it can. Whether you’re planning your child’s overseas education, scaling up your business, or purchasing a new property or machinery, your property can be your biggest financial ally.
Enter the Loan Against Property(LAP)—a smart, strategic, and often overlooked funding option that helps you unlock the hidden value of your real estate without giving up ownership.
Let’s understand what a Loan Against Property really is and how it can work for you.
What Is a Loan Against Property?
A Loan Against Property is a secured loan offered by banks and NBFCs where you pledge your residential, commercial, or industrial property as collateral in exchange for a loan.
Unlike a personal loan—which is unsecured and comes with higher interest rates—a LAP gives you access to a much higher loan amount, with a longer, more comfortable repayment tenure, at a lower interest rate, thanks to the property guarantee.
And no, you don’t have to vacate or sell your property. You continue to own and use it while repaying the loan.
How Does a Loan Against Property Work?
Here’s a step-by-step look at how the process typically unfolds:
1. Application & Eligibility Check
To begin with, you apply for the loan by submitting basic documents such as income proof, KYC documents (ID and address proof), property papers, and bank statements. Lenders evaluate:
- Your income and repayment capacity
- The market value of the property
- Property ownership and legal clarity
2. Property Valuation & Loan Amount
The lender sends a valuer to assess the market worth of your property. Based on this, you can get anywhere between 45% to 75% of the property’s market value as a loan.
For example, if your property is valued at ₹1 crore, you may be eligible for a loan of up to ₹75 lakhs.
3. Loan Disbursement
Once the paperwork is complete and the loan is approved, the funds are transferred to your account—either as a lump sum or in tranches (for ongoing expenses like business expansion or property construction/renovation).
4. Repayment Tenure
LAPs come with flexible repayment tenures—ranging from 5 to 10 years, depending on your eligibility and comfort. You repay the amount through EMIs, and many lenders also offer part-prepayment and foreclosure options.
5. End of Loan Tenure
After repaying the full loan amount along with the interest, the lender returns your original property documents and releases the lien. Your property is now 100% debt-free again.
What Can You Use a LAP For?
The beauty of a LAP is that its end-use is flexible. You can use it for a wide range of purposes:
- Business expansion or working capital
- Debt consolidation
- Personal expenses like higher education or a family wedding
- Property construction or renovation
- Acquiring new assets like property or machinery
Key Benefits of a Loan Against Property
✅ Lower Interest Rates – Since it’s a secured loan, LAPs are often cheaper than personal loans or credit card debt.
✅ Larger Loan Amount – You can borrow significantly more compared to an unsecured loan.
✅ Longer Tenure – Repayment terms stretch up to 15–20 years, making EMIs more manageable.
✅ Continued Property Ownership – You don’t lose possession—you still live in or use the property.
✅ Surrogate Income Assessment Options – Ideal for customers without formal financials/income documents.
Things to Keep in Mind
- Ensure your property has clear legal titles and all necessary approvals.
- If you default, the lender has the legal right to auction your property.
Final Thoughts: Don’t Just Own Property—Make It Work for You
Your property is more than just bricks and mortar—it’s financial potential waiting to be unlocked. A Loan Against Property turns your asset into opportunity, without sacrificing ownership or comfort.
If you’re sitting on a high-value property and need funds for a major life goal, don’t let it just sit there—put it to work.
At InCred Finance, we help you tap into the true value of your property with quick processing, flexible repayment options, and personalized support—so your next big move is never out of reach.
Turn your property into possibility with InCred Loan Against Property. Also, do listen to our latest podcast on Loan Against Property – https://www.youtube.com/watch?v=8NyiOBHSFqQ