sbi Loan Against Property / Mortgage loan

Loan against Property is a secured loan. If you own residential or commercial property you could utilize the value of the same by opting for a equitable mortgage loan. The property papers are taken as security for a loan at a much lesser rate than personal loan. The ownership of the property is retained by you. In case of inability to repay the loan the property could be disposed off to repay dues.

Normally loan against property is taken for a long term for working capital, expansion, repay expensive personal loans etc. You could also opt for a overdraft facility, which is renewed ever year.
Loan amount could range from Rs.5 lakh to Rs.5 Cr.
Loan tenor could extend up to 15 years.
Eligibility depends on your income and the market value of the property.

It is important to understand that a loan against property is different from a mortgage. While a mortgage is a bank loan taken to buy a property, a loan against property is a loan secured from the bank by putting up your existing property as a security against the loan.

Depending upon the existing market conditions, the paid up value of the property and other factors, the value of the loan against property can be anywhere between 40-60 % of the property value. Cash in on your smart investments of the past and build a safe future. Take a property loan today and use it for any kind of requirement.


Loan against Property (LAP) is more generally known as 'Home Equity Loan.' LAP is specifically designed for an individual who already owns a property and is in need of borrowing some finances. But the property against which he is taking up the loan amount must be free from any encumbrance, i.e., it is not offered as security for any other purpose.

Loan against property can be taken against one's self occupied residential or commercial property. This type of loan serves many purpose like expanding one's business, planning a wedding or funding your child's education. But while availing this loan, one needs to state and assure that the loan amount is not being taken for illegal purpose or indulging in any speculative activity.

Loan against property is the most secured form of availing a loan facility. Under this, the borrower pledges collateral in the form of property against the loan amount. The borrower still maintains the right of ownership of the property and in case he is unable to repay back the loan amount, he can sell the property to pay off the debts. People mainly take up loan against property either to start or expand their business. Moreover, this type of loan is widely used to repay the existing high rate of debts.


Eligibility Salaried Self Employed
1. Min. age 21 years 21 years
2. Max. age 60 years 65 years
3. Minimum income (annual) Rs.1,20,000 Rs.1,50,000
4. Minimum years in service 1 year Not Applicable
5. Min years of buss. existence Not Applicable 3 years
6. Minimum loan amount : 2,00,000 Rs.2,00,000
7. Maximum loan amount : 1,50,00,000 Rs.1,50,00,000
8. Minimum loan tenure : 1 years 1 years
9. Maximum loan tenure : 15 years 15 years
10. Loan to value ratio 60%of property value
60%of property value
50%of property value
50%of property value

These criteria varies from one bank to another. some of the common factors are:

Minimum age required is 21 yrs for salaried and 23 years for self-employed.
Maximum years is 50 years for salaried and 65 years for self-employed.

Minimum income should be Rs.20000/- per month.

Loans can be applied by individuals, either solely or jointly.
Owners of the current property, in respect of which the loan is being sought,
will have to be co-applicants. However, the co-applicants need not be co-owner

Individual financers have there own geo limitations. Generally most of the
banks prefer the property to be located within City Limits.

LAP is available from minimum 1 year to a maximum of 15 years.


Though the documents vary from bank to bank the common documents are:


Proof of Identity

Proof of age

Proof of Signature

Residence Proof

Proof of business existence

Qualifications Certificate (For Salaried)

Proof of business existence

Income Proof Salary Slips ,Form 16(For Salaried)

3 years Income Tax returns (self and business)

Business profile

Property Documents & NOC from Society.

Last 6 months bank statements

Processing fee cheque


What are the interest rates ?

Interest rates on loan against property range from 12 per cent to 16 per cent.

What are the modes of repayment?

There are normally 2 modes of repaying either opting for a overdraft facility or through regular EMIS.

What is the difference between a LAP and a personal loan?

LAP is taken by mortgaging property.
Personal loan is without any security or guarantors.

LAP is Cheaper then Personal loans generally 12%-16% interest rate.
Compared to LAP interest rates fall in the range of 16%-21%

Personal Loan is available from Rs.50,000/- upto Rs.20 lakhs
LAP is available from Rs.10 lakh upto Rs.3 crores.
Maximum loan tenure for LAP is up to 15 years (180 months)
Maximum loan tenure for personal loan is up to 5 years (60 months)

What percentage of the property value is the loan sanctioned?

LAP is sanctioned upto 60% of the property value if residential
and 40% to 50 % in case of commercial.

What happens if the loan is not repaid?

The Property can be repossessed by the lender to recover its
outstanding loan amount. To allow recovery of the loan amount, courts can order
foreclosure (sale in the open market to recover dues) of the property.

sbi mortgage loan

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