Loan Against Property (LAP): Features, Eligibility & How to Apply

Loan Against Property (LAP) is a secured loan where you pledge your residential or commercial property as collateral to avail funds. It offers higher loan amounts and lower interest rates compared to unsecured loans, making it ideal for business expansion, education, or medical emergencies.

The loan amount typically ranges from 50% to 70% of the property's market value, depending on the lender and property type. Interest rates for LAP generally range from 8% to 12% per annum, significantly lower than personal loans which can go up to 24%.

Eligibility for LAP requires the property to be free from any legal disputes and have a clear title. Both salaried and self-employed individuals can apply. The property must be in the applicant's name or jointly owned. Minimum income requirements vary by lender but typically start at ₹3 lakh per annum.

Required documents include property papers (sale deed, title deed, approved plan), KYC documents (PAN, Aadhaar), income proof (salary slips for salaried, ITR for self-employed), bank statements for the last 6 months, and property valuation report.

The application process involves property evaluation, legal verification, credit assessment, and finally disbursement. Through Catfin, you can compare LAP offers from 20+ lenders and get the best rates based on your property value and credit profile.