Loan Against Property

Overview

Apply for Indusind Bank Loan against Property to meet your business or personal needs. Our “Loan against Property” solutions will help you unlock the hidden value of your property. With this multi-purpose loan you can now fulfill any of your personal or business needs. What’s more, this loan can be comfortably repaid over a period of 20 years.

Variants of Loan Against Property

Loan Against Residential or Commercial Property

Loan for Purchase of Commercial Property

Additional Finance

Balance Transfer

Lease Rental Discounting

Benefits of Loan Against Property

Faster Mode of raising immediate long term funds

Higher Loan amount

Funds can be used to meet Business or Personal needs

Doorstep Services

Eligibility Criteria Loan Against Property

Eligibilty for Loans Against Property

Following constitution borrowers are eligible

Individuals/Proprietorship concerns
Partnership firms
Private Limited Companies
Closely held Public Ltd Companies (not listed on any stock exchange)

Salaried Individual

Any individual employed permanently in any Public sector Undertaking, Government undertaking, Multi National Company, Listed public limited company or well-known private limited company can apply
Minimum age at the time of loan application should be 21 years & maximum age at loan maturity should be lower than retirement age

Self Employed Professional/Non Professionals

Doctors, Charted Accountants, Cost Accountants, Architects, Engineers, Company Secretary, CFA's can apply
Any individual filling Income Tax returns can apply
Minimum age at the time of loan application should be 21 years & maximum age at loan maturity should not exceed of 70 years

Documentation Required for Loans Against Property

	Individuals	Non Individuals
Application form	Application form with photograph
KYC Documents	Valid identity/Residence/Signature proof
Proof of Income	Latest Form 16/ITR copy/Appointment letter and latest 3 months’ salary slips / Salary Certificate	Latest 2 years ITR along with Computation and Acknowledgement. 2 years financials with full schedules & audit rpt (Form 3CD & 3CB). Financials to be audited for T/O > 40 /60 Lacs case else shd be CA certified
Bank Statement	Latest 6 months bank statement of the MAIN CA/SA/CC/OD account
Property documents	Copy of all property documents of the concerned property that you wish to mortgage for loan
Processing fee	Processing fee cheque	Processing fee cheque

Loan Against Property Interest Rates

APR Data for Q3 FY 25

Bank ROI			APR
Min	Max	Average	Min	Max
9.10%	14.00%	10.17%	9.16%	14.60%
Note: LAP APR is based on the minimum and maximum rate for a tenure of 10 years. Actual APR will vary based on actual interest rate and tenure.

Rates & Fees

IndusInd Bank Offer attractive rates based on the customer profile and the type of the collateral offered. Our rates are linked to the external Benchmark rates which is currently at 6.50%.

In case of Rate Reset

As per the RBI circular dated Aug 18, 2023 on “Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans”, the following product features will be applicable to Loan Against Property (LAP) at the time of reset of interest rate on account of change in underlying benchmark rate:

Loan Against Property (LAP) is extended to following types of borrowers viz:

Individual borrowers for personal purpose
Non-individual borrowers or individual borrowers for business purpose (this specific borrower segment does not fall under the purview of this circular)

In case of any increase in Rate of Interest (ROI) due to upward movement of applicable underlying benchmark rate for floating rate loans, the tenure of the loan will be increased keeping the EMI unchanged. However, such elongation of tenure will be subject to maximum of 60 months from the original sanctioned tenure and thereafter, EMI of the loan will be increased to absorb the impact of any ROI increase.
In case of reset in rate of interest pursuant to change in underlying Benchmark Rate (BR), Bank will communicate to the Borrower, impact of change executed. After receipt of said communication the Borrower may request in writing to the Bank either for enhancement in EMI or elongation of tenor or a combination of both options.
The following points will be applicable to Loan Against Property (LAP) extended to individual borrowers for personal purpose:
- In case of any increase in ROI due to increase in underlying external benchmark rate, the bank can allow the borrower to make a prepayment towards the loan subject to:
  - Borrower being an individual & end use of the loan is for personal purpose
  - Written application being submitted by the borrower for making a prepayment towards the loan
  - The said payment being from own sources of funds and to be verified through borrowers bank statements duly submitted along with the application.
The age of the primary borrower at the time of maturity should not exceed 80 years on account of such elongation in tenure.
In case of any decrease in ROI due to downward movement of applicable benchmark rate, the tenure of the loan will be reduced keeping the EMI same.

Schedule of charges

Click here for Schedule of Charges

Click here for LAP Penal Charges

MSME Update

Click here for LAP MSME Update

FAQ

What is a Loan Against Property?

A loan against property (LAP) is a mortgage loan that is offered to individuals, companies or firms against any of their existing residential or commercial property. This type of loan is ideal for people who are in need of immediate funds for different purposes such as expanding their business or meeting some of their personal financial needs. The main advantage of getting LAP is you can still hold on to your property and raise funds for your needs.
How much maximum amount can I avail myself of on a property as LAP?

The maximum amount of loan you can get depends on your profile and eligibility rating. In addition, the amount also depends on certain other factors such as your monthly income, age, credit score, monthly financial obligations, retirement age and credit history.
What is the procedure to apply for a Loan Against Property?

Applicants can use any of the methods given below to apply for LAP:
- Fill up the online application form and one of our representatives will get in touch with you to help you complete the process.
- Call our phone banking number available on the website
- Visit the nearest IndusInd Bank branch
- Get in touch with your relationship manager for more details to apply for LAP
What will be the maximum tenure for which the loan will be offered?

The maximum tenure offered by IndusInd Bank for LAP is 20 years.
What security/collateral do I have to provide in Loan against Property?

You can use your residential property as collateral. Apart from that, if you have any commercial property such as a shop or office, you can also use these as collateral.

Loan Against Property: Essential Tips to Avoid 5 Costly Mistakes

Maximise the benefits of a loan against property by comparing interest rates, selecting a suitable repayment tenure, and borrowing an amount that aligns with your repayment capacity.

How LAP Differs from Other Types of Loans – iBlogs

A loan against property distinguishes itself from other loans by leveraging property as collateral, providing borrowers with higher loan amounts while maintaining attractive interest rates and longer repayment periods.

What are Some Important Things about Loans against Property?

Critical things to bear in mind about a loan against property pertain to valuation and ownership of the property, loan pre-closure, repayment tenure, and loan processing & additional fees. Unlock the value of your property and reap several benefits with a loan from IndusInd Bank.

2024 Loan Against Property Interest Rate Trends

Multiple factors influence the loan against property interest rates for 2024. These include macroeconomic factors like the external benchmark rates and monetary policy, along with other parameters like the borrower’s profile, property details, and LTV ratio. The interest rates vary from lender to lender and are based on their policies and the risk associated with the borrower.