Micro LAP
What Is a Mortgage Loan? Types, Meaning, Work & Benefits
Aug 13, 2026 | 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
Calculate your estimated monthly installments with our intuitive Loan Against Property EMI calculator. Simply input the loan amount, tenure, and interest rate to plan your finances effectively. Please note that results are indicative and should be used for planning purposes only.
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
How to Apply For an Instant Loan Against Property?
Follow these simple steps to apply for a Loan Against Property wth L&T Finance.
1. Apply Online
Fill out a quick application form providing your personal, income, and property details.
2. Connect with a Representative
Our loan specialist will reach out to guide you and collect necessary documents.
3. Eligibility and Documents Verification
We assess your loan eligibility and verify the provided documents.
4. Configure Repayment Mode
Choose your EMI repayment method and schedule.
5. Loan Disbursement
Upon sanction, loan funds are credited to your designated bank account swiftly.
Loan Against Property Eligibility & Documents Required
Eligibility For LAP Loan
Check if you qualify for a LAP loan by reviewing the eligibility criteria for residency, age, profession, and income. Ensure all required documents are ready for a smooth application process.
Residency:
Indian residents only
Age:
Salaried: 23 years to 70 years
Self-employed applicants: 25–70 years
Profession:
Salaried, self-employed professionals, and non-professionals
Income:
Loan eligibility can be enhanced by including co-applicants or other verified income sources
Documents Required For Loan Against Property
Check the essential documents you need to submit when applying for a Loan Against Property to ensure a smooth and quick approval process.
Age Proof
Aadhaar Card | PAN Card | Passport
Address Proof
Recent utility bills (not older than 2 months), Aadhaar Card, Driving License, Passport, Voter ID.
Photo ID Proof
PAN Card plus any one of Aadhaar Card, Driving License, Passport, Voter ID, NREGA job card, or National Population Register letter.
Income Proof
Varies with employment type.
Loan Against Property Fees and Charges
Know all the important fees and charges for your LAP loan, from processing to foreclosure, to ensure a transparent borrowing experience.
Charge Type - Loan Against Property
Details
Processing Fees:
Up to 3% of sanctioned amount + applicable taxes
Login Fees:
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 & 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–
Floating Rate –
Nil Charges where end use is not for business/commercial purpose
For cases where end use is for
business/commercial purpos
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*
*Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026.
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
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.Pre-payment Charges – Loan Against Property
For Individual–
Floating Rate –
Nil Charges where end use is not for business/commercial purpose
For cases where end use is for
business/commercial purpos
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/Pre-payment amount + applicable taxes*
*Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026.
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
For Non – Individual Borrowers – (Applicant/Co – applicant)
Fixed/Floating rate loan –
i. Less than 1 year from disbursement – Up to 4% on Partial/Pre-payment + applicable taxes*
ii. Post 1 year of disbursement – Up to 3% on Partial/Pre-payment amount + applicable taxes*
*Note: NIL for MSEs loans and advances, sanctioned or renewed on or after January 1, 2026 for floating rate loan.Foreclosure / Full Prepayment Charges – for Dropline Overdraft / Hybrid Overdraft
For Individual–
Floating Rate –
Nil Charges where end use is not for business/commercial purpose
For cases where end use is for
business/commercial purpos
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*
*Note: NIL for loans and advances sanctioned or renewed on or after January 1, 2026.
Fixed Rate –
Less than 1 year from disbursement – Up to 4% Dropline Limit + applicable taxes
ii. Post 1 year of disbursement – Up to 3% on Dropline Limit + applicable taxes
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.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
Loan Against Property Interest Rate
Interest rates for LAP start at 9.00% per annum* and vary according to loan amount and tenure:
| 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* |
Note: Rates are indicative and subject to change in line with RBI regulations and borrower profile.
Things to Consider Before Applying for a Mortgage Loan
Before applying for a mortgage loan, ensure you:
- Check Your Financial Readiness: Monitor your credit score and debt-to-income ratio to improve loan terms.
- Set a Realistic Budget: Factor in your income, existing expenses, taxes, insurance, and property-related charges.
- Evaluate Loan Options: Compare fixed and floating rate options, and use the LAP EMI calculator to understand repayment obligations.
- Maintain Financial Stability: Prepare savings for a down payment and minimize new debts during the loan evaluation.
- Understand the Loan Process: Have all required documents ready to avoid delays.
- Get Pre-Approved: Pre-approval clarifies your borrowing capacity and strengthens your negotiating position.
Types of Mortgage Loan
- Loan Against Property: Secured loans against your residential or commercial property for personal or business purposes.
- Lease Rental Discounting (LRD): Obtain funds against your rental income; future rent receivables are discounted for upfront capital.
- Balance Transfer with Top-Up: Transfer existing mortgage to better loan terms with the option to avail additional funds via top-up loans.
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.
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.
