What is a loan against property?
A loan against property is secured borrowing where an eligible owned property is mortgaged to support a permitted financial need. The amount offered depends on repayment capacity, property valuation and lender policy.
You retain repayment responsibility throughout the loan. Because the property is security, default can put it at risk. Consider whether a secured commitment is appropriate before using a home or business property to raise funds.
Potential advantages to consider
Use eligible property value
Property ownership may support borrowing for a permitted personal or business purpose.
Explore secured structures
Compare eligible secured proposals with other borrowing options on total cost, terms and risk.
Keep purpose and repayment aligned
Discuss the requirement and repayment source before deciding how much to borrow.
What can affect eligibility?
- Clear ownership and lender-acceptable title
- Property location, type, condition and valuation
- Income, existing liabilities and repayment capacity
- Credit record and consent/documents of owners as required
Documents and information to prepare
- Identity, address, income and bank records
- Ownership/title chain and registration documents
- Property tax receipts and approvals where requested
- Existing property loan or encumbrance details, where applicable
Requirements vary by provider and profile. Never put documents, identity numbers, passwords or OTPs in the initial enquiry.
Open loan document checklistsCosts and trade-offs to review
Review mortgage, legal, valuation and processing expenses.
Understand the property security, enforcement consequences and repayment obligations.
Borrowing capacity is not a recommended loan amount; retain a budget buffer.
What happens next?
- Share your requirement and your own contact details with our team. This first enquiry does not apply for a loan.
- Discuss your income profile, repayment commitments and the documents a lender may require.
- Review any lender proposal, including its repayment schedule, total cost and applicable terms, before deciding.
- If you proceed, the lender verifies your application and decides approval and disbursement. We assist with coordination.
Loan Against Property FAQs
Is this the same as a home loan?
No. A home loan generally finances an eligible home purchase or construction. A loan against property raises funds against an existing eligible property for a permitted purpose.
Can I borrow against commercial property?
Property acceptance depends on the lender. Tell our team the property type, location and ownership so requirements can be discussed.
Can I apply without title documents?
The lender needs acceptable ownership and property records for assessment. Missing documents may prevent it from processing the proposal.
What is the main risk?
The property is mortgaged as security. Missed repayments may lead to lender recovery action under the agreement and applicable rules.
Explore related guidance
Further reading: RBI: Key Facts Statement and APR ↗. External information is not an appointment claim or product recommendation.
General information, not a personalised loan offer, credit decision or insurance recommendation. Ask the relevant lender or authorised insurer to confirm the terms that apply to you.