What collateral can I put up for a Loan Against Property?

CreditEnable_Loan Against Property

Loans Against Properties are some of the most common forms of borrowing in India.

To get a LAP, you provide your lender with a copy of your property papers as collateral, and they give you a loan in return. LAPs are a form of secured business loan that can get you a higher loan amount for a longer loan tenure, as your collateral provides the lender with some assurance that you can pay the loan EMIs.

What collateral should I offer the lender for a LAP?

When you need a loan against property, you can offer the lender the following as collateral:

  1. Residential properties that you either live in yourself or have rented out
  2. Commercial properties that are self-occupied or rented out
  3. Residential plots without construction.
  4. Industrial properties

I’m ready to apply for a Loan Against Property!

What are the different types of Loans Against Property available?

  1. Loan Against Residential or Commercial Property: When you pledge a residential or commercial property as collateral for the loan.
  2. Loan Against Balance Transfer: If you have a pre-existing LAP with another lender, you can transfer the outstanding principal amount to another lender who may offer you better loan terms.
  3. Loan Against Property Top-Up: If your existing loan amount is not enough to cover your needs, you can request a top-up on top of your existing balance.
  4. Loan Against Property Overdraft: In this type of LAP, you get an overdraft line of credit with a specified upper limit. You withdraw what you need within the overdraft limit, and interest is charged only on the amount used.

Learn more about Loan Against Property.

What property papers will I need to give the lender to mortgage one of my properties?

  1. Past Sale Deed
  2. Registered Sale Deed/ Conveyance/ Lease Deed

How do I know if my property value will be enough to cover my loan requirements?

Lenders will calculate your LAP amount as a percentage of the current market value of the property pledged. Depending on the property you offer and your financial history, you may be able to get up to 70% of the total value of the property.

Why should I apply for a LAP with CreditEnable?

CreditEnable partners with over 25 leading lenders in India, who offer more than 100 specialized SME loan products. Our service is 100% digital, free to use, and quick.

When you apply for a LAP with CreditEnable, we work with our lender partners to get you up to 70% of the value of your property at interest rates starting at 14%. We also do a quick eligibility check to confirm that you meet our lender partner requirements for business financing. We do this by conducting a soft pull of your Experian credit score, which has absolutely no impact on your credit report. If your credit score is 750 or above, and you meet all the other loan criteria, we will match you with one of our lender partners and loan products.

What’s a soft pull of my credit score?

Apply for a LAP with CreditEnable.

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