Micro LAP
Understand About Types of Mortgage Loans
Jun 12, 2025 | 4 mins read
Loan Against Property
Tap into your property's potential with our Loan Against Property. You can apply loan against property amount ranging from ₹25 Lakh* to ₹7 Crore* with a maximum loan tenure of up to 20 years. We provide easy and efficient processing of your loan with quick disbursal. Our property finance offers attractive interest rate and flexible repayment plans, to facilitate your needs of business expansion, education, or any other requirement.
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Dropline Overdraft
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Commercial Property Purchase
Loan Against Property EMI Calculator
Results generated by the calculator(s) are indicative in nature.
Preferred loan amount
₹
₹25,00,000
₹7,00,00,000
Interest rate (per annum)
%
9%
13%
Loan tenure (months)
36 months
240 months
Estimated EMI
per month- ₹ 36,690
Interest payable
₹52,41, 690
Loan Against Property Eligibility & Documents Required
Eligibility for Loan Against Property
Residency:
Indian resident
Age:
Salaried: 23 years to 70 years
Self-employed: 25 years to 70 years
Profession:
Salaried / self-employed professionals and non-professionals
Other:
Can be increased by adding co-applicant income or other verifiable income sources
List of Documents Required for a Loan Against Property
Age Proof
Aadhaar Card | PAN Card | Passport
Address Proof
Utility bills (not older than 2 months) | Aadhaar Card | Driving License | Passport | Voter ID etc
Photo ID Proof
PAN and any one of the following- Aadhaar Card| Driving License | Passport | Voter ID | Job card by NREGA | Letter issued by the National Population Register containing details of name and address
Income Proof
Income proofs vary for different professionals across salaried, non-salaried and self-employed. List of required income documents
Loan Against Property Fees And Charges
List of all fees and charges for Loan Against Property
Processing Fee:
Up to 3% of sanctioned amount + applicable taxes
Login Fee:
Up to Rs.5000/- (inclusive of applicable taxes) (nonrefundable)
EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandateAs shown in the table below
Loan sanction amount (in INR)
Charges in (in INR)
< 5 lacs
₹ 500
5 – 50 Lacs
₹ 1000
>50 Lacs – 2 Cr
₹ 1500
>2 Cr
₹ 2000
Penal Charge/Late Payment Charge (LPC):
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Annual Maintenance Charges (applicable only for Dropline Overdraft and Hybrid Overdraft)
Up to 0.25% + applicable taxes of Dropline Limit available at start of each year (i.e. first on 13th Month and then every anniversary thereon).
Document retrieval / Duplicate NOC charges
Duplicate NOC (charge is applicable for paper copy post 3 free copies per customer), list of documents, Photo copies of the documents (property & others) Up to Rs.1000/- + applicable taxes
Repayment instrument swap fee (per swap):
Up to Rs. 500/- + applicable taxes (applicable only for branch walk-ins)
Asset valuation and verification fee
Up to 1% of loan amount + applicable taxes
Documentation and repayment setup fee
Up to Rs.2,000/- + applicable taxes
Interest conversion fee
Floating interest rate to floating interest rate: 0.5% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxes
Floating interest rate to a fixed interest rate and vice versa: 1% of balance Loan Amt. or Rs. 10,000/- whichever is higher + applicable taxesCharges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002:
- Issue of Loan Recall Notice = Up to Rs. 500/ –
- Issue of Demand Notice = Up to Rs. 1,000/ –
- Issue of Possession Notice = Up to Rs. 2,000/ –
- Applying District Magistrate Order = Up to Rs. 8,000/
- Taking Physical possession = Up to Rs. 20,000/ –
Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice/ Publication Demand Notice/Publication of Sale cum Auction Notice. All applicable taxes will be added.
Loan Cancellation Charges:
Up to Rs. 5000/– + applicable taxes
Recovery of proportionate actual expenses from disbursement date(s), from individual borrower(s) in
LAP – Up to 1% of total disbursed loan amount + applicable taxes in case of closure within 24 months
Foreclosure / Full Prepayment Charges – Loan Against Property:
For Individual Borrowers –
- Floating Rate –
Nil Charges where end use is not for business/commercial purpose
For cases where end use is for business/commercial purpose
i. Less than 1 year from disbursement – up to 3% principal outstanding + applicable taxes*
ii. Post 1 year of disbursement – up to 2% on principal outstanding + applicable taxes* - Fixed Rate –
i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes
ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes
* Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026
For Non – Individual Borrowers – (Applicant/Co – applicant)
- Fixed/Floating rate loan –
i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes*
ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes*
*Note : NIL for MSEs loans and advances, sanctioned or renewed on or after January 1, 2026 for floating rate loan.
- Floating Rate –
Pre-payment Charges – Loan Against Property:
For Individual Borrowers –
- Floating Rate –
Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose
i. Less than 1 year from disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes*
ii. Post 1 year of disbursement – up to 2% on Partial/Prepayment amount + applicable taxes* - Fixed Rate –
i. Less than 1 year from disbursement – up to 4% on Partial/Pre-payment amount + applicable taxes
ii. Post 1 year of disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes
* Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026.
For Non – Individual Borrowers – (Applicant/Co – applicant)
- Fixed/Floating rate loan –
i. Less than 1 year from disbursement – up to 4% on Partial/Prepayment + applicable taxes*
ii. Post 1 year of disbursement – up to 3% on Partial/Prepayment amount + applicable taxes*
*Note: NIL for MSEs loans and advances, sanctioned or renewed on or after January 1, 2026 for floating rate loan.
- Floating Rate –
Foreclosure / Full Prepayment Charges – for Dropline Overdraft / Hybrid Overdraft
For Individual Borrowers –
- Floating Rate –
Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose
i. Less than 1 year from disbursement – up to 3% on Dropline Limit + applicable taxes*
ii. Post 1 year of disbursement – up to 2% on Dropline Limit + applicable taxes* - Fixed Rate –
i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes
ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes
*Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026.
For Non – Individual Borrowers – (Applicant/Co – applicant)
- Fixed/Floating rate loan –
i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes*
ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes*
*Note: NIL for MSEs loans and advances, sanctioned or renewed on or after January 1, 2026 for floating rate loan.
- Floating Rate –
Pre-payment Charges – – for Dropline Overdraft / Hybrid Overdraft:
Part pre-payment of Loan toward limit reduction is not available
Non-Compliance Charges:
Up to 1% p.a. of principal outstanding loan amount + applicable taxes
Breakup between Principal & Interest:
As per Repayment Schedule
Example of SMA/ NPA classification:
More particularly mentioned under “Classification of Assets” under the head “Miscellaneous”
Field collection service fee:
Up to Rs. 500/- per collection + applicable taxes
Legal fees and charges:
As per actuals or Up to Rs. 50,000/- whichever is lower + applicable taxes
Recovery charges:
As per actuals or Up to Rs. 1,00,000/- whichever is lower + applicable taxes
Auction fees:
Up to 1% of auction sale amount + applicable taxes
Exclusive deals from L&T Realty
How to Apply for Instant Loan Against Property?
Apply for Loan Against Property with these steps
1. Apply Online in Minutes:
Click on "Apply Now" and fill in the form with your personal details and other relevant information
2. Connect with our representative
Our representative will contact you with the details of the loan offer and collect your documents
3. Eligibility and Document check
Your eligibility will be checked and documents will be verified before processing the loan
4. Configure your mode of repayments
You can select your repayment mode and set up a convenient EMI payment schedule
5. Get Loan Disbursement:
Receive the loan amount directly into your account, ensuring convenient and smooth access to funds
Loan Against Property Interest Rate
When you pledge your property for a loan, the Loan Against Property interest rate plays an important role in deciding your EMI and total repayment. With Loan Against Property from L&T Finance, you can benefit from competitive rates starting at 9.55% per annum*, along with flexible loan amounts and repayment options.
Here's a quick view of how Loan Against Property interest rates work across different loan ranges:
| Loan Amount Range | Interest Rate (per annum)* | Tenure Options* |
|---|---|---|
| ₹ 3 Lakh - ₹ 25 Lakh | Starting from 9.00%* | 3 Years to 10 Years* |
| ₹ 26 Lakh - ₹ 1 Crore | Starting from 9.00%* | 11 Years to 15 Years* |
| ₹ 1.1 Crore - ₹ 7 Crore | Starting from 9.00%* | 16 Years to 20 Years* |
FAQs & Support
View allWhat is the maximum and minimum amount I can borrow for a Property Loan?
You can borrow between ₹30 lakh* to ₹7 crore*, depending on the value of the property and your eligibility criteria.
What can a Loan Against Property be used for?
You can use the funds for multiple needs such as business expansion, working capital, education expenses, wedding, medical costs, or debt consolidation. There are usually no end-use restrictions (except for speculative or unlawful purposes).
What are the different forms of loans offered under Loan Against Property?
You can avail loans such as term loans with fixed EMIs or overdraft/line of credit facilities, where you withdraw funds as needed within the approved limit.
What are the parameters for arriving at Loan Against Property eligibility?
Eligibility parameters for Loan Against Property with L&T Finance include:
Salaried: Salaried employee of any public, private, or multinational organisation and age from 23 years to 62 years
Self-employed: Self-employed with a steady income from business and age: 25 years to 70 years
Total income and property value are also taken into consideration.
What is a Loan Against Property?
A Loan Against Property (LAP) is a secured loan where you pledge your property as collateral. You can borrow funds against the market value of your property for business or personal or need.
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.
Can I pay extra EMI for a loan against the property?
Yes, paying extra EMIs or making part-prepayments can help reduce the principal amount and interest burden, thereby shortening the loan tenure.
Can I get any tax benefit on a Loan Against Property?
Under Section 24(b), you can get a loan against property tax benefits on the interest paid on your loan if the funds are used for financing your new home. The maximum benefit that you can avail of under this section is Rs. 2 lakh.
What is the maximum repayment period for my Mortgage Loan?
The maximum repayment period for a mortgage loan can go up to 20 years, depending on eligibility.
Housing Loan
Buying a home in Mumbai was always a dream of mine, and L&T Finance has made this dream come true. They offered competitive interest rate, quick approval with easy documentation. I would highly recommend L&T Finance to anyone looking for a reliable home loan provider.
Yadika Hussain
Mumbai
Housing Loan
L&T Finance made my homeownership and business growth easier! After taking a home loan with another bank, I needed additional funds to expand my business. L&T offered a quick response, pre-approval, & a streamlined process with minimal paperwork. Plus, I received lower interest rate & maximum funding!
Amol Hirawadekar
Mumbai
Housing Loan
Choosing L&T Finance for our home loan was seamless. The team was supportive, with transparent documentation, quick responses, and competitive rates. Their efficient process made our home-buying journey smooth, and the L&T Emerald’s location, amenities, and security make it the perfect choice for our family.
Amit Chaturvedi
Mumbai, Maharashtra
Housing Loan
I was looking to buy a property and L&T finance Housing Loans stepped in forward to cater to all my demands, the ease of the documentation processes and their commitment to provide disbursement at the earliest. Whatever I asked, the team was there support at every step to get me through.
Mr. Sharad Pandey
Captain, Merchant Navy
Housing Loan
The process of applying L&T Finance Housing loans was a very easy and seamless process. And the credit goes to L&T Finance's entire Housing loan team. They have been extremely helpful & quick response. A very transparent process, the best of the market rates and quick disbursement.
Amit Chaturvedi
Powai, Mumbai
Things to Consider Before Applying for a Mortgage Loan
Before you apply for a Mortgage Loan, it is important to plan well. Here are some key things to keep in mind:
- Check your financial readiness :
Review your credit score and debt-to-income ratio. A good score and a lower debt level improve your chances of getting better loan terms. - Set a clear budget :
Consider your income, expenses, and long-term goals. Include property-related costs like taxes, insurance, and registration fees to understand what you can afford. - Evaluate your options :
Compare fixed-rate and floating-rate loans to see which suits you better. Use a Loan Against Property calculator to check EMI and tenure* before applying. - Save and stay financially stable :
Build savings for down payment and extra costs. Avoid new debts or big financial changes during the loan process. - Understand the loan process :
Get all documents ready, such as ID proof, income proof, and property papers, to ensure a smooth and quick approval. - Get pre-approved :
Pre-approval gives you clarity on how much you can borrow and makes you a stronger candidate in front of sellers.
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Types of Mortgage Loan
L&T Finance offers different types of Mortgage Loans to meet varied financial needs. Here are the main options:
- Loan Against Property :
You can pledge your residential or commercial property to get funds for personal or business needs. The loan can be used for education, medical expenses, business expansion, or any other approved purpose. - Lease Rental Discounting (LRD) :
If you own a property that is rented out, you can use the rental income to secure a loan. The future rent receivables are discounted to provide you with upfront funds. - Balance Transfer with Top-Up :
Transfer your existing Mortgage Loan to L&T Finance to get better interest rates and flexible terms. You can also avail a Loan Against Property top-up loan for additional financial requirements.
