Loan Against Property: Meet Your Financial Dreams With Ease

Home Loan vs Plot Loan e1472454742455
Home Loan vs Plot Loan e1472454742455


Striking a balance between dreams and reality is no mean feat. While our dreams are myriad, our resources are often limited. A loan comes in handy when there is a wide disparity between your aspirations and the funds in your savings account. 

However, with so many loans available to choose from, it often seems difficult to pick the right loan and lender. Scroll down to know why loans against property are one of the most preferred loans for Indian borrowers. 

What is a Loan Against Property?

A loan against property, or mortgage loan, is a loan you can avail by submitting your property papers to the lender. The property documents act as collateral security through the tenure of the loan. Although a rarity, if the borrower does not pay the loan EMIs for more than six months in a row, the lender may initiate the process of liquidation of the borrower’s asset.

How Can a Loan Against Property Fulfil Your Financial Dreams?

Other than easy eligibility criteria for LAP and low interest rates, a loan against property offers several other benefits that make it one of the most popular loans that Indian lenders offer. The following are a few ways in which a loan against property can help you meet your financial aspirations.

1. Home Repair

A house may give you various reasons to worry. With a loan against property, you can take up structural repairs of your house. You may also spend the funds on routine maintenance activities like painting, plumbing, buying electrical appliances, decorate a room, or even construct a room.

2. Motor Vehicles

With COVID-19 making personal vehicles a necessity rather than a luxury, this is the best time to check a loan against property eligibility and apply for a loan. Mortgage loan EMIs are generally more cost-effective than vehicle loans.

3. Hospital Expenses

Sudden hospitalization of self or a close relative can make you scurry for cash. With an instant loan against property, you can take care of hospital expenses without going for other costly borrowing options.

4. Consolidate Debt

Sometimes, an unpaid loan may wreak havoc on your credit score and financial profile. Use a loan against property to settle off existing debt and increase your credit score. The low-cost EMIs of a mortgage loan will never put a burden on your wallet.

5. Business Needs

Businesses often need urgent cash to tide over immediate needs. As you may use a loan against property for any business requirement, it can be an excellent way to stay assured about cash flow.

Other than the reasons mentioned above, you may spend the loan against property funds on any requirement you consider suitable. 

What is the Loan Against Property Eligibility Criteria?

To avail a loan against property, you must be a citizen of India and your age should be between 21 and 65. Additionally, the property you wish to mortgage must be in your name. 

The interest rates generally start from 9.80%. However, the rate you get will depend on factors like monthly income and liabilities, type of property, nature of borrower’s income, age, and location.


On choosing the appropriate lender, a loan against property can offer you unparalleled convenience. After all, not too many loans in India offer the kind of features and flexibility that a loan against property offers.


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