Raise money against property you already own. A lower rate, a longer tenure and a larger amount than unsecured lending — with a real trade-off that we will not talk around: the property is mortgaged, and default puts it at risk.
Market rates for a loan against property currently sit roughly between 9.25% and 16.5% a year, with tenures up to fifteen or twenty years. That is a market range, not a rate you have been quoted.
Is a loan against property right for you?
Usually a good fit
- You need more than ₹25 lakh
- You want a tenure beyond five years
- The title is clear and the papers are complete
- You want a materially lower rate than unsecured
- The business is young but you own property
Probably not the right route
- The title has gaps or a dispute
- The property is agricultural land
- You need the money within two weeks
- You are not comfortable mortgaging it
- You need under ₹15 lakh
What your property could support
Lenders fund a share of market value, known as the loan to value or LTV. What that share is depends mainly on what the property is and how easily it could be sold.
| Property type | Typical LTV | Worth knowing |
|---|---|---|
| Residential, you live in it | 60 – 70% | The best rates and the highest LTV band |
| Residential, rented or vacant | 55 – 65% | Rental income can help your eligibility |
| Commercial, you occupy it | 55 – 65% | Depends heavily on location and how saleable it is |
| Commercial, let out | 50 – 60% | The quality of the lease deed matters |
| Industrial property | 40 – 55% | Fewer lenders, and a longer process |
| Plot or land | 40 – 50% | Many lenders decline this outright |
See what your property could support
Work out the EMI
₹56,830
per month · 180 months
- Total interest
- ₹52,29,372
- Total repayment
- ₹1,02,29,372
In the first year, about 79.6% of what you pay goes to interest rather than reducing the loan.
See what my property could supportIndicative only. Final eligibility, interest rate, charges and sanction are decided by the lender after full assessment of your profile and documents. Transakt does not lend and does not approve loans.
Business loan or loan against property?
| Unsecured business loan | Loan against property | |
|---|---|---|
| Security | None | Your property is mortgaged |
| Typical amount | ₹5 L – ₹1 Cr | ₹25 L – ₹10 Cr |
| Market rate range | 14% – 28% | 9.25% – 16.5% |
| Typical tenure | 1 – 5 years | Up to 15 – 20 years |
| Typical timeline | 5 – 15 working days | 3 – 6 weeks (valuation and legal) |
| EMI on ₹50 lakh | ₹1,26,967 (18%, 5 yr) | ₹56,830 (11%, 15 yr) |
| Best when | You need speed, the amount is modest, and you would rather not mortgage anything | You need scale, a lower cost, or a longer runway |
| The real risk | A high EMI strains cash flow | Default puts the property at risk |
These are indicative ranges seen in the market, not an offer from Transakt and not a rate you have been quoted. Your actual rate depends entirely on the lender's assessment of your profile.
Documents for a loan against property
The property paperwork is where most LAP files actually get stuck, so it is worth starting to collect these before you need them.
Step 2 — Who is applying?
25 documents for a loan against property as a self-employed professional
About you 4
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For a company or firm, the entity PAN as well as the PAN of each director or partner.
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The name on Aadhaar should match PAN. A mismatch is one of the most common causes of delay.
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Electricity bill, rent agreement, passport or voter ID. It must match the address you put on the application.
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Recent, plain background. Some lenders still want physical copies.
About the business 6
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If you are registered. If you are not, say so early — it changes which lenders can look at the file.
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Free to obtain and takes about a day. Worth having even if no lender has asked for it yet.
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Utility bill, rent agreement, trade licence or shop and establishment certificate.
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The oldest of your GST certificate, Udyam registration, trade licence or first ITR usually does this.
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Degree certificate and, where applicable, the registration or practice certificate — medical council, bar council, ICAI and so on.
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Clinic or office registration, or the professional body membership certificate.
Money 5
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All current accounts the business uses. This is the document a lender reads first — download the PDF from net banking rather than scanning a printout, and do not remove any pages.
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Filed returns, with the acknowledgement. An unfiled or late return will hold the file up.
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Audited where audit applies. For a small proprietorship, the computation attached to the ITR is often enough.
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Your monthly GST summary return. Lenders compare this against your bank credits, so the two should tell the same story.
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Plus the latest statement or repayment schedule for each. Hiding an existing loan never works — it shows on the credit report.
The property 7
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Registered, with the original available for inspection.
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A gap in the chain is the single most common reason a property loan stalls. Start collecting these early.
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Usually for the last thirteen to thirty years, from the sub-registrar office.
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Sanctioned by the local authority. Unapproved construction reduces the amount a lender will fund, sometimes to nothing.
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Paid up to date, in the name on the deed.
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For completed apartments and buildings.
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If the property is let out. Rental income can help your eligibility.
Sometimes asked for 3
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Some lenders ask for this to understand concentration risk. A simple typed list is fine.
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If the money is for a specific machine or asset.
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For working capital facilities above roughly ₹50 lakh.
Actual documents vary by lender and by your profile. Your advisor will confirm the exact list before anything is submitted.
Why property loans stall
A gap in the title chain
Lenders want to trace ownership back thirteen years or more through registered deeds. One missing link document is the single most common cause of a stalled LAP file. Start collecting these early.
What you will needUnapproved construction
An extra floor without a sanctioned plan, or a deviation from what was approved, reduces the amount a lender will fund — sometimes to nothing. It does not always stop the loan, but it always changes it.
How valuation worksThe property is not in the applicant’s name
If the property belongs to a parent, a sibling or the firm rather than to you personally, that owner has to join the loan as a co-applicant. It is workable, but it needs to be planned rather than discovered at the last minute.
How LAP worksA valuation shortfall
The lender’s valuer decides the value, not the market rate you have in mind. A valuation coming in 20% below expectation is common, and it reduces the loan proportionally.
What LTV meansA tenanted commercial property
A protected or long-standing tenant makes a property harder to enforce against, and lenders price or decline accordingly. Have the lease deed ready and be upfront about the tenancy.
LAP on commercial propertyNot sure where you stand?
Ask the Transakt assistant. It can work out your EMI, give an indicative range and tell you what a lender will want to see — without asking for your number.
Questions people ask
How much can I get against my property?
Typically 55% to 70% of market value for residential property and 40% to 65% for commercial and industrial, subject to your income being able to service the EMI. Whichever of those two limits is lower is what you get. The valuation is done by the lender's valuer, whose number may well differ from the market rate you have in mind.
Can I get a loan against a property that is rented out?
Yes. The LTV is usually slightly lower than for a self-occupied property, but the rental income can count towards your eligibility, which sometimes more than makes up for it. Have the registered lease deed ready.
What happens if I cannot repay?
The property is security for the loan, so a sustained default gives the lender the legal right to recover their money by enforcing against it. This is the real difference between secured and unsecured borrowing and it should be a deliberate decision, not an afterthought. If repayment ever becomes difficult, speak to the lender early — restructuring is far easier before an account is classified than after.
How long does a loan against property take?
Usually three to six weeks. Assessing you takes about the same time as any other loan; assessing the property is what adds the weeks, because it involves a physical valuation and a legal opinion on the title. Having the property papers ready in advance is the single biggest thing you can do to speed it up.
Can I get a loan against agricultural land?
Most mainstream lenders will not lend against agricultural land for a general-purpose loan. There are agricultural credit products with their own rules, and a small number of lenders who will look at converted or non-agricultural land. It is worth a conversation, but do not build a plan around it.
Is the interest on a loan against property tax deductible?
It depends entirely on what the money is used for and how it is accounted for, and we are not tax advisers. If the loan funds the business, the interest may be a business expense. Talk to your CA before assuming a deduction.
Can I get a top-up on an existing loan against property?
Often yes, if the property value has grown or you have repaid a meaningful part of the loan, and your repayment record is clean. A top-up is usually quicker and cheaper than a new loan elsewhere because the lender already holds the property papers.
Get your property reviewed by an advisor
Your file
- One advisor, not five lenders. Your details are not sold or shared.
- A call within one working day, on the number you give us.
- No documents needed yet. No PAN, no Aadhaar, no statements.
- Ask us to delete your file at any time and we will.