5 Tips of Loan Against Property you Shouldn’t Avoid


With the evolution of technology, it has become relatively easy to avail a mortgage loan, also known as Loan Against Property (LAP). You can carry out all the necessary procedures online through the lender’s website or mobile app. However, it is required to take care of little things while applying for a LAP. It will help ensure the smooth practicality of the process. Listed below are a few tips to take into consideration before applying for a loan against property. 

  1. Asset Valuation:

Whether you are applying for a LAP or mortgage loan over a commercial or a residential building, you need to know the net asset value of the property. Keep in mind that you can’t get a loan amount that is more than the property’s monetary value. Usually, a lender will take into account various aspects to finalize the market value according to their analysis. So, in most cases, lenders will grant you not more than 70% of the property’s market value. You can check the loan against property eligibility to know the amount that you can get. In case your requirements are not met by that. You can consider other financial options together. 

  1. Repayment capability:

Loan against property is required whenever there is a need to cover large expenses. Your monthly income has a vital role to play to decide your repayment capabilities. Depending on your monthly income, and credit requirements, you can use a loan against property calculator to determine a tenure that is suitable for you. Your income must be enough to compensate the monthly EMI’s without putting heavy financial burdens on your daily life. 

Having regular income helps the lenders assure that you would have enough liquidity to pay off your EMIs on time rather than defaulting them. It, in turn, saves them from getting burdened by an additional process to carry out the sale of the pledged collateral. The tenure for a mortgage loan can go up to a maximum of 15 years in most cases.

  1. You can have a co-applicant:

At times, you might not be able to fulfil the repayment capability on your own. In such a case, you can have a co-applicant for your loan against property. The lenders will verify whether you together will be able to make repayments timely or not. It can help you reduce the financial burden on yourself, and get the loan at a reduced interest rate.

  1. Ownership of the property:

A mortgage loan is approved if the owners of the property are ready to produce it as a collateral. In case a property is owned by multiple people, all owners must agree to hand it as a collateral. Your loan application can get rejected if the property owners do not agree to do the same. Legal disputes over the right of property can make you lose your chances of approval. However, if you are the sole owner of a property, then it will be easy for you to avail the mortgage loan for the same.

  1. Understand the fees involved:

There are certain charges other than the interest rates that you have to pay. These charges may include agent costs, charges on pre-closure, and sale tax. You must agree to pay these additional charges when you apply for a Loan Against Property. To know the total amount you would have to pay, you can use the loan against a property calculator online. Sometimes, you might not need to pay some of these charges as a few lenders exclude them.


You must make sure that your transaction for the application of loan against property goes smooth. For that, you need to take care of the tips mentioned above. You can check your loan against property eligibility before applying to ensure that your lender accepts the loan application. Moreover, you can make sure that you can pay your EMI by making sure that the amount is not a burden over your monthly expenses using a loan against property calculator. After taking care of all the vital aspects of your loan application, you can apply for the loan and get it approved.


Please enter your comment!
Please enter your name here