Loan Against Property: a complete working guide
How lenders value your property, what LTV to expect, and where LAP files usually stall.
7 min read
What you need to know
LAP is the workhorse of Indian business finance. It converts an illiquid asset into long-tenure, reasonably priced funding, and unlike a business loan it does not demand two years of rising turnover.
The two things that decide your outcome are the valuation and the title. Lenders commission their own valuer, and their number is often 10-20% below the market price you have in mind. Title issues — an unregistered chain document, a missing society NOC, construction beyond the sanctioned plan — are the most common reason a sanctioned LAP never disburses.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Detailed comparison
| Property type | Loan to value | Indicative rate |
|---|---|---|
| Residential, self-occupied | 65-75% | 9.25% – 11% |
| Residential, rented | 60-70% | 9.75% – 11.5% |
| Commercial shop / office | 55-65% | 10% – 12.5% |
| Industrial unit | 50-55% | 11% – 14% |
| Vacant plot | 40-50% | 12% – 15% |
Frequently asked questions
What is the main takeaway from “Loan Against Property: a complete working guide”?
How lenders value your property, what LTV to expect, and where LAP files usually stall.
What should I check before acting on this business finance guide?
The guide includes a typical ltv by property type comparison covering Property type, Loan to value, Indicative rate.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.