Why Should You Trust a Loan Against Property to Overcome Financial Emergencies in 2021?


You must be aware of how crucial role money plays in our lives. If you have enough money, you can live peacefully. You may also have sufficient savings to take care of short-term financial issues. But, the problem arises when your savings fall short of the financial requirement. A Loan Against Property acts as a viable option. However, not all loans are as benefit-rich as a loan against property or LAP loan.

Here are the reasons that make a loan against property one of the simplest loans to avail when you need money, including eligibility, documents, term, interest rate, loan amount, and application process.

Loan Against Property – Eligibility

Loan against property eligibility depends on various parameters, including age, nationality, CIBIL score, income, and property status.

To apply for a LAP loan in India, you need to be a citizen of India and your age must be above 21 and below 60. (If you are age 60+ consider investigating a reverse mortgage). As it is a secured loan, any property owner, irrespective of their credit score, may apply for the loan. But, you can often get the best interest rates if your CIBIL score is above 800. Loan against property eligibility also depends on income, and lenders prefer if the monthly income of a borrower is high or more than enough to take care of the loan bills. Also, the property you mortgage must be free from legal litigations.


Loan against property eligibility also depends on the availability of documents. To ensure loan approval, you need to submit documents like age and address proof, income statement, bank account statement, and property papers, along with other documents specified by the lender. Hence, if you keep the documents ready, loan approval can be quick and easy.

Loan Tenure

The loan term of a LAP loan is usually twenty years. However, if you want to get rid of debt sooner, you can opt for a shorter loan term. If your income is less, an extended loan term will increase your loan against property eligibility, as you will pay fewer EMIs.

Interest Rate

Your loan against property eligibility has an impact on the interest rates. The higher the eligibility, the better loan terms you can expect. If your credit score is exceptionally high, you can expect lower interest rates and better terms. Generally, the interest rates start from 9.50%. Keep an eye on festive discounts and special offers for higher savings.

Loan Amount

Like interest rates, the loan amount also depends on your loan against property eligibility. If you fulfill all the criteria set by the lender and your documents are in proper order, you can get a loan amount of up to 60% of the market value of the property. As soon as you apply for a LAP loan, the lender sends a property appraiser to your house, who evaluates the property papers and decided the loan amount. It takes a day or two for the funds to reach your account.

Application Process

You can apply for a LAP loan both online and offline. To apply online, you have to visit the nearest branch of the lender and fill the application form, attach documents, and hand it over to the loan officer. The online mode is more convenient. You need to visit the lender’s website, upload the documents online. and hit the apply button.


Due to its easy eligibility, loan against property is one of the most frequently availed loans in India. The high loan amount of a LAP loan can prove helpful during an emergency. Choose a reputed lender to get the best loan terms and interest rates.


Please enter your comment!
Please enter your name here