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FAQ - L&T Finance

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What is a Loan Against Property?

An LAP is a secured loan where your property acts as collateral, enabling you to raise funds for business or personal needs.

What is the maximum repayment period for my Mortgage Loan?

Mortgage loans can have a tenure of up to 20 years, subject to eligibility.

What are the parameters for arriving at Loan Against Property eligibility?

Eligibility for a Loan Against Property with L&T Finance includes salaried individuals aged 23–62, self-employed borrowers with 3–5 years of business history aged 25–70, and a good CIBIL score (750+) for better rates.

What is the maximum and minimum amount I can borrow for a Property Loan?

You can borrow between ₹30 Lakh* and ₹7 Crore*, depending on your property’s market value and eligibility.

Can I pay extra EMI for a loan against the property?

Yes, prepayment or extra EMI payments reduce the principal and interest burden, shortening your loan tenure.

What is the processing fee for a Loan Against Property?

The processing fee for a Loan Against Property is up to 3% of the sanctioned amount plus applicable taxes. This fee covers the cost of legal and technical valuation of the property.

Can I get any tax benefit on a Loan Against Property?

Yes, under Section 24(b) of the Income Tax Act, interest paid on a LAP for a new home is eligible for a maximum deduction of ₹2 Lakh annually.

What are the different forms of loans offered under Loan Against Property?

LAP is available as term loans with fixed EMIs or as overdraft/line of credit facilities, allowing withdrawals up to the approved limit as needed.

What can a Loan Against Property be used for?

LAP funds can be used for business expansion, working capital, education, weddings, medical expenses, or debt consolidation, provided the purpose is lawful and non-speculative.

What is the maximum and minimum amount I can borrow?

You can borrow between ₹30 lakh* to ₹7 crore*, depending on the Market Value (MV) of the property and your repayment capacity (commonly calculated via the Loan-to-Value or LTV ratio, which typically ranges from 50% to 75%).

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