loan against property

In India, the loan against property market is forecasted to grow at a CAGR of over 14% by FY2026 to reach USD 857.87 billion in terms of value. The many benefits associated with loan against property making it a popular financing option in India; these include flexible dropline, affordable interest rate, high-value top-up, and many others. 

Loan Against Property: Points to Note

  • Loan against property interest rate is cheaper than personal loan interest rate
  • Borrowers continue to retain possession of their property even after availing of the loan
  • Both constructed residential and commercial property can be used as collateral
  • The loan credit depends on the prevailing fair market value and not the past value 

An individual looking for a high-value loan with the freedom to use the credit as he/she pleases can go with a loan against property (LAP). This loan is one of the mortgage loans provided by housing finance companies and NBFCs to salaried and self-employed borrowers against their residential or commercial properties. With Bajaj Finserv’s subsidiary Bajaj Housing Finance Limited (BHFL), borrowers can get a  LAP loan at a lower interest rate to manage a number of big-ticket expenses such as financing/expanding your business, funding your child’s education or wedding, or medical emergencies. 

Advantages of Bajaj Finserv’s Loan Against Property 

1. High-Value LAP Loan 

Bajaj Finserv sanctions a higher loan amount of up to 3.5 crores. 

  • Salaried borrowers can meet their expenses of up to Rs 1 crores with the sanctioned loan. 
  • Self-employed borrowers can expand their business with up to Rs 3.5 crores. 

2. Fast Processing and Disbursal with Doorstep Facility 

The disbursal process is relatively fast and straightforward with the easy eligibility criteria, door-step facility, and minimal documentation. Refer to the following list of documents required: 

For Salaried Borrowers For Self-employed Borrowers 
Latest salary slipsProof of business continuity for five years
Bank account statements of the last three months Bank account statements of the last six months
Copy of the property to be collateralizedCopy of the property to be collateralized
PAN/Aadhar details PAN/Aadhar details 
Residence Proof Residence proof 

3. Flexible Loan Tenor and Prepayment Facility 

Individuals can opt for a tenor up to 20 years to repay a loan against property, which keeps repayment comfortable. Bajaj Finserv allows borrowers to part-repay or prepay the LAP loan anytime against minimal charges.

4. Flexi Dropline 

With a view to effective financial management, you can borrow as you go and pay interest on the amount utilized only. 

5. Lower Debt Burden with the Easy Balance Transfer Facility 

Bajaj Finserv processes the existing loan against the property balance transfer facility quickly with minimal documentation and a lower interest rate comparatively. It is the facility that allows borrowers to transfer their outstanding principal of the existing loan against property. Borrowers can prepay the balance transfer loan at nominal charges. 

6. Property Loan Interest Rate  

The mortgage loan interest rate depends on the property type and age, source of income, tenor, location, and sometimes employers also a salaried person working with.

7. Ready-to-use Tools and Online Account Management 

Borrowers can calculate their EMIs and interest on property loans using Bajaj Finserv’s loan against property calculator. It enables borrowers to use their finances effectively for loan repayment. Online account management is simple using the online Customer Portal. Borrowers can EMI Store and Experia Services called Experia to their loan details anytime, anywhere. 

To use the calculator, the applicant needs to determine the loan amount they are eligible for, the repayment tenor they prefer from 2-20 years, and the applicable rate of interest. The quote of interest rate by the lending financial institution based on the borrower’s eligibility for mortgage loans.

Illustration for using a loan against property calculator to get result within a few seconds.

AssumptionThe Results
Loan Amount: 20 lakhsTotal Interest Payable: Rs.18,90,548 
Tenor: 15 years Total Payment: Rs.38,90,548
Rate of Interest (let’s say): 10.10% for a salaried borrower Monthly EMI: Rs.21,615

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