Micro Loan Against Property up to ₹25 Lakh

Name: Micro Loan Against Property
Brand: L&T Finance
Rating: 5 (10 reviews)

Unlock the financial potential of your rural property with a Micro Loan Against Property (Micro LAP) from L&T Finance, a trusted and RBI-regulated Non-Banking Financial Company (NBFC). Whether you own a small business, need working capital, or require funds for personal expenses, Micro LAP provides an affordable and flexible financing option. Borrow up to ₹ 25 Lakh* based on your property's market value with repayment tenures of up to 20 years, competitive interest rates starting at 14% p.a., and minimal paperwork. Designed especially for rural India, the Micro LAP facilitates quick approvals and a smooth disbursal process, helping borrowers meet their varied financial needs effortlessly.

Features & Benefits
EMI Calculator
Documentation
Eligibility
Fees & Charges
Frequently Asked Questions

Key Features & Benefits – Micro LAP

Competitive Interest Rates

Access Micro Loan Against Property at attractive interest rates starting from 14% per annum, tailored for rural borrowers.

High Loan Amount

Secure a loan up to 75%* of your property’s market value, enabling a significant credit line against your assets.

Flexible Loan Tenure

Choose convenient repayment options with tenures ranging from 2 years to 20 years, lowering your EMI burden.

Minimal Documentation

Apply online with simple and limited documentation, significantly reducing processing delays.

Transparent Process

No hidden fees or charges – all costs are clearly outlined upfront to maintain complete transparency.

Quick Disbursal

Benefit from fast processing and disbursal, ensuring timely access to the funds you require urgently.

EMI Calculator

Use the Rural Loan EMI Calculator to estimate your monthly installments easily. Enter the loan amount, tenure, and rural loan interest rate to plan repayments accurately and manage finances better.

Preferred loan amount

₹

₹2,00,000

₹25,00,000

Interest rate (per annum)

12.50%

22%

Loan tenure (months)

24 months

240 months

Estimated EMI

per month

₹ 36,690
Interest payable
₹52,41, 690

Apply Now

Eligibility & Documents

Eligibility for Micro Loan Against Property

Check your profile using the Rural Loan Eligibility Calculator before applying. Eligibility depends on income stability, property value, repayment capacity, and applicable rural Loan Interest Rate norms.

Salaried Individuals:

Age:
Between 18 years (at loan onboarding) and 60 years (at loan maturity).

Minimum Income:
Monthly minimum income of ₹7,000.

Residency:
Must be an Indian citizen residing in rural areas.

Loan Amount:
Eligible for loans up to ₹15 lakh.

Co-applicant:
Women co-applicants are encouraged to apply, potentially accessing better interest rates and higher loan eligibility.

Self-Employed Individuals:

Age:
Between 18 years (at loan onboarding) and 70 years (at loan maturity).

Annual Income:
₹1 lakh to ₹15 lakh per annum.

Residency:
Must be an Indian citizen residing in rural areas.

Loan Amount:
Eligible for loans up to ₹15 lakh.

Co-applicant:
Women co-applicants encouraged for better terms.

Non-Financial Individuals:

Age:
Between 18 years (at onboarding) and 85 years (at maturity).

Other criteria aligned with ownership of property and income stability.

Documents Required for Micro LAP

Keep your Rural Loan Documents ready, including KYC proof, income details, bank statements, and property papers to ensure faster processing and approval.

Salaried Individuals:

Duly filled Micro LAP application form.

Identity proof (PAN card mandatory) and address proof (Aadhaar, Voter ID, Passport, Driving License).

Recent income proof including last 2 months salary slips, Form 16, and last 3 months bank statements.

Property ownership papers with clear legal title and encumbrance certificate.

Self-Employed Individuals:

Completed application form.

Identity and address proof for self and business establishment.

Income documentation such as last two years Income Tax Returns (ITR), Profit & Loss Account, Balance Sheet, and 6 months bank statements.

Proof of business address.

Registered property documents with clear legal title.

Applicants may be asked for additional documents based on the specific case and loan amount.

Fees and Charges

List of all fees and charges for Micro Loan Against Property

Processing Fees
Up to 2% of loan amount + applicable taxes
Login Fee
Up to Rs. 4000/- + applicable taxes, non-refundable.

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 mandate
As shown in the table below

Loan sanction amount in Rs.

Charges in Rs.

< 5 lacs

₹ 500

5 – 50 Lacs

₹ 1000

>50 Lacs – 2 Cr

₹ 1500

>2 Cr

₹ 2000

Late Payment Charges/ Penal Charges
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Foreclosure Charges:
Up to 3% of principal outstanding + applicable taxes
Pre-payment Charges
Up to 3% of the pre-payment amount + applicable taxes
Charges 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.
Repayment instrument swap fee (per swap)
Up to Rs.500/- + applicable taxes (applicable only for branch walk-ins)
Document retrieval / Duplicate NOC charges
List of documents: Up to Rs.300/- + applicable taxes
Photo copies of the documents (property & others): Up to
Rs.500/- + 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

Seamless Loans, Simplified Experience

Download the Planet app for a one stop loan solution with effortless management at your fingertips. Learn More

Apply online for micro lap, check eligibility, submit required documents, and complete verification for quick approval and transparent rural loan interest rates.

Financing the Needs Of

Our Micro LAP facility caters to a broad spectrum of rural entrepreneurs and individuals who own property and require accessible finance. This includes:

Kirana shop owners operating at a small scale
Tea and food stall proprietors
Barbershop and salon entrepreneurs
Scrap dealers managing small recycling operations
Garage and repair shop owners
Laundry service owners in rural sectors
Catering service providers
Commission agents working in local markets
Tailors and garment workers
Auto and taxi drivers with self-owned vehicles

This comprehensive list ensures even the smallest rural business entities can unlock their property’s value for developmental and working capital needs.

Disclaimer

The details provided are for information purposes only and subject to change without prior notice. All loan sanctions are subject to L&T Finance Limited’s eligibility criteria, credit assessment, and RBI regulations. Interest rates, fees, and charges adhere to the latest Reserve Bank of India guidelines and vary based on application specifics. Please read the Key Facts Statement (KFS) carefully before proceeding. L&T Finance Limited does not guarantee loan approval or specific rates. Borrow responsibly.

FAQs & Support

View all

What is the maximum loan amount I can get under L&T Finance for Micro Loan Against Property?

The maximum loan amount under L&T Finance for Micro Loan Against Property depends on the property’s market value and repayment capacity. You can borrow up to 75%* of the property’s value, with the exact amount determined during the loan approval process.

How can I apply for Micro LAP finance?

You can apply for Micro LAP finance by:
1. Click here to Apply Now.
2. Get in touch with our customer representative
3. Wait for your eligibility and document check
4. Get Loan Disbursed.

Are there any Foreclosure Charges for Micro LAP?

Yes, Loan prepayment is permitted, with foreclosure charges clearly outlined in the KFS provided by the company. For more details, please view Micro LAP Fees and Charges.

Will there be a processing fee for Micro Loan Against Property financing?

Yes, there is a processing fee for Micro Loan Against Property of up to 1% on loan Amount + applicable taxes.

Can I prepay my Micro Loan Against Property Loan?

Yes, you can prepay for your Micro Mortgage Loan. However, foreclosure charges will apply.

What are the fees and charges for a Micro Loan Against Property?

Fees & Charges List of all fees and charges
Processing Fees: 1% on loan Amount + applicable taxes
Application fees: Rs. 4000/- + applicable taxes

EMI Dishonour/ Bounce Charges:
Loan sanction amount (in INR) : Charges in (in INR)
< ₹ 5 lakh: ₹ 500
₹ 5 Lakh – ₹ 50 Lakh: ₹ 1000
> ₹ 50 Lakh – ₹ 2 Crore: ₹ 1500
> ₹ 2 Crore :₹ 2000

Penal Charges/Late Payment Charges (LPC):
2% per month (p.m.) on overdue EMI + applicable taxes
*LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023
*Taxes applicable on LPC w.e.f.1st Apr 2024

Foreclosure Charges: 3% on principal outstanding + applicable taxes

Who is eligible for a rural Loan for Micro Loan Against Property?

Any individual or business entity that owns a property in rural India, can take a Micro Loan Against Property. This includes farmers, self-employed individuals, salaried professionals, and business owners who meet L&T Finance's eligibility criteria.

What is the interest charged on Micro LAP?

The interest rate for a Mortgage Loan starts from 14%* per annum, subject to borrower profile, credit appraisal, and prevailing policies.

What are the eligibility criteria for Micro Loan Against Property?

Here is the eligibility criteria for Micro Loan Against Property:
Age: 18 and 65 years
Residency: The applicant must be an Indian citizen residing in India
Income Stability: Must have a stable source of income
Property Ownership: The applicant must own the property being mortgaged, and the property should have a clear legal title.

What is a Micro LAP Loan?

A Micro Loan Against Property (M LAP) allows you to borrow funds by mortgaging your rural property. The loan can be used for various purposes, such as business expansion, personal expenses, or agricultural needs and more.

Explore all FAQs

Micro LAP

L&T Finance made a huge difference for me & my farming business. I, along with 2 of my friends, got a micro loan with a quick & easy application process. The timely payments of my EMIs are manageable & my farming income has increased significantly. I'm truly grateful for L&T Finance's help!

Nirmala Dabi

Ratlam, Madhya Pradesh

Micro LAP

L&T Finance provided swift support for our 20-year-old silk handloom business. Their executive guided us through a seamless process, quickly disbursing the loan after property verification. We're thankful for their efficient and reliable service that helps us meet our daily business needs.

Mrs. Kannaga

Chennai, Tamil Nadu

Micro LAP

I am engaged in farming and a small dairy business. When I explored financing options, the interest rates in the market were too high. With a quick home inspection and property mortgage, I secured a loan at a competitive interest rate. The process was straightforward, and funds were disbursed quickly.

Mr. Palraj

Chennai, Tamil Nadu

Micro LAP

As an assistant professor with over 10 years of experience, I found L&T Finance's MLAP loan process easy, transparent, & with the lowest interest rates. Digital, minimal documentation process was quick, & the auto-debit EMI & PLANET app features make repayment and account access convenient.

Mr. Udhayakumar

Rajagambiram, Tamil Nadu

Micro LAP

We called and the L&T Finance representative came to our house. They quickly completed the formalities and gave us the money really fast so we could use it for our needs. Everything was done digitally. I am grateful to L&T Finance.

Mrs. Kanaga

Handloom Service