Various financing options are available in the Indian lending market, with the loan against property being one of the many. The loan against property is secured, offering several benefits, such as flexible repayment, high loan value, lower interest rates, tax benefits, etc. However, it is crucial to learn about loan against property and the factors influencing the interest rates to reap maximum benefits.

Besides, one must meet the loan against property eligibility criteria to avail the credit in a hassle-free manner. 

How to apply for a loan against property? 

One can apply for a loan against property through the online mode. However, for loan against property application online, applicants must follow the below-mentioned steps: 

Step 1: Visit the online portal of your preferred lender and fill up the application form for LAP. 

Step 2: Provide details such as your name, age, employment status, income etc., along with property details. 

Step 3: The verification process generally takes a few days. However, it is best to check whether one meets the loan against property eligibility criteria. This will help in getting a prompt response from the lender. 

Step 4: After the lender has verified the documents provided by you, the lender will sanction the loan amount. 

What is the loan against property eligibility criteria? 

According to a market research platform, the loan against property market is expected to grow by a CAGR of 14% by FY2026. This statistic implies the growing demand for loans against property. 

Nevertheless, one should meet the lender-specific eligibility criteria to avail the loan successfully.  One must remember that the eligibility criteria vary with lenders, however, the common ones are: 


  • Must be a resident of India 
  • The applicant should be between 28 to 58 years of age
  • They must work at an MNC or a public company
  • The applicant must have three years of work experience 


  • The applicant has to be a citizen of India 
  • Their age must be between 25 and 70 years 
  • They must have a stable income with a business continuity of 5 years 

Factors that affect loan against property interest rate

Applicants must understand that the loan against property interest rate depends on factors, such as CIBIL score, type of property to be mortgaged etc. These are discussed in detail below: 

  • CIBIL score 

One’s credit, or CIBIL score plays a pivotal role while determining the interest rate for a loan against property. Keeping the score 750 or above is recommended to avail competitive rates. 

  • The type of property mortgaged 

The interest rate differs for residential and commercial properties because both have different market values. Furthermore, the age of the property, its location, and the condition can also influence the interest rate. 

  • Loan tenor 

One must know that the loan tenor is a determinant factor as well. Besides, applicants must remember that LAP is a long-term financial commitment. One must pay their monthly instalment for at least 10 to 15 years. Opting for a longer tenor ensures easy monthly liability, while a shorter tenor keeps the total borrowing cost in check.  

  • Profile of the borrower 

The interest rate charged by a lender is also influenced by a borrower’s profile. This is characterised by the applicant’s age, occupation, city of residence, monthly income etc. 

In some cases, the lender may charge a lower interest rate to salaried individuals because of their steady source of income. On the other hand, a self-employed individual may be asked to pay a higher interest rate. 

Also, one must select lenders wisely to avail maximum benefits. Reputed financers extend pre-approved offers that ensure a quick and hassle-free lending process. These offers are provided on multiple financial products, such as home loans, loans against property etc. Individuals can check their pre-approved offers online by entering their contact details.  

Since the loan against property eligibility criteria vary with lenders, it is best to check them beforehand. 

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