Micro LAP
Understand About Types of Mortgage Loans
Jun 12, 2025 | 4 mins read
Spoorthi is a dedicated mortgage program specifically designed to empower women entrepreneurs. The program facilitates financing for the purchase of residential property, or business expansion. It covers both Home Loans (HL) and Loan Against Property (LAP). You can apply loan amount ranging from ₹25 Lakh* to ₹7 Crore* with a maximum loan tenure of up to 25 years*. We provide easy and efficient processing of your loan with quick disbursal.
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Industrial Purchase
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DLOD
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)
%
8.99%
13%
Loan tenure (months)
%
36 months
240 months
Estimated EMI
per month- ₹ 36,690
Interest payable
₹52,41, 690
Eligibility & Documents Required
Eligibility
Residency:
Indian resident
Age:
Self-employed: 25 years to 70 years
Profession:
Self-employed professionals and non-professionals
Other:
Can be increased by adding co-applicant income or other verifiable income sources
List of Documents Required
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 non-salaried and self-employed. List of required income documents
Fees And Charges
List of all fees and charges
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
Apply for Loan 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
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 8.99% 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 8.99%* | 3 Years to 10 Years* |
| ₹ 26 Lakh - ₹ 1 Crore | Starting from 8.99%* | 11 Years to 15 Years* |
| ₹ 1.1 Crore - ₹ 7 Crore | Starting from 8.99%* | 16 Years to 20 Years* |
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.
