Loan against Property (LAP) FAQs

A loan that is granted against residential or commercial property.

It is a quick means of raising money, either used for capital or for business expansion

Generally loan against property are granted upto a maximum of 50% on commercial property and 60% on residential property, subject to the repayment capacity of the borrower.

Generally, Self occupied Residential properties, Owned/Rented Residential and Commercial property. Vacant land is not considered for this purpose.

This loan is granted only to the owner of the property.

Alternatively, LAP can be obtained even if the property is in the name of the company or its directors.

In case of third party collateral, the banks/FIs would decide selectively on a case to case basis, depending on various other parameters.

LAP is granted as a monthly repayment loan or as an overdraft, on a revolving basis.

The general tenor of the loan is for a longer period, ranging from 10-15 years.

The loan is granted to any salaried or self-employed category of people, having the property in their name or the name of the company/firm. At Quikrupee, we cater only to the self employed segment.

A photocopy of the property documents including the parent documents and the sanctioned plan is necessary for availing the facility. These documents are needed for a period back upto 30 years and Encumbrance Certificate required for 13 years.

The facility ranges between Rs.10 lakhs – Rs.25 crore.

Indicative interest rates vary between 12% p.a. - 16% p.a.

Yes, you can have a co-applicant for your property. Your spouse, parents, children can be co-applicants to the loan. The co-applicant need not be a co-owner of the property. However, a co-owner of the property has to be a co-applicant for the loan. A company can also be a co-applicant for the loan.

Yes. It can be. But, the disbursal will be in tranches, as and when the property is completed.

Yes. The Agreement of sale should be registered, as per the legal process.